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Triyards issues profit warning for Q3
LISTED yard group Triyards Holdings issued a profit warning for the third quarter ended May 31, 2017 after Friday trading hours, citing the continued depressed state of the oil and gas (O&G) industry and the downturn of the marine and offshore market.
It said that its board of directors is of the view that Q3 will reflect a net loss as compared to the earnings recorded in the corresponding period of the previous financial year.
Its management is also of the opinion that the group should rationalise and reassess the carrying value of certain assets. These assets were previously acquired or developed with the intent of redeploying them for new projects or business ventures related to the O&G industry.
Among the assets under consideration for potential impairment are the group's properties in Houston that were acquired in 2012 to develop the market for offshore cranes for the O&G industry in the North Americas and the Gulf of Mexico.
Triyards also said that it is waiting on certain information to evaluate the options to unlock cash for its current projects. The information necessary for evaluating the options on the table is expected to take about 21 days to land.
The group has thus applied to the Singapore Exchange for extra time beyond July 14, 2017 to announce its unaudited financial results for Q3.