LOWER profit margins due to a different mix of products eroded results for Triyards Holdings in its first quarter despite a higher topline.

Net profit nosedived 66 per cent to US$2.1 million from the previous year, the group said in a Singapore Exchange filing on Friday morning.

For the three months ended Nov 30, revenue increased 17 per cent to US$91.2 million from the preceding year.

The increase in revenue was thanks to contributions from two multi-purpose support vessels, three chemical tankers, four escort tugs, a scientific research vessel and two oil tankers during the financial period. The group also received contribution from Strategic Marine Group for the construction of aluminium crew boats and wind farm vessels.

Triyards said it has successfully diversified its clientele base and expanded its product offerings beyond oil and gas related assets over the past 12 to 18 months, and that it continues to see interest in its offerings with the diversification strategy.

Its CEO Chan Eng Yew said that market fundamentals continue to be weak with the demand-supply imbalance largely unresolved. "We foresee that market conditions for the O&G industry will remain challenging for the next 12-18 months and expect sustained margin pressures for industry players," he said. "We continue to build our product range while maintaining superior quality and safety standards to stay relevant in this difficult market."