Triyards' Q1 profit down 25% to US$6.2m

OFFSHORE marine and engineering firm Triyards Holdings' net profit for the first quarter fell 25 per cent despite higher revenue due to lower-margin projects and the absence of a one-time gain.

Revenue for the three months ended Nov 30, 2015, rose 38 per cent to US$78.1 million, thanks to contributions from contracts for four units of SEUs (self-elevating units) and two units of multi-purpose support vehicles, as well as certain industrial and offshore fabrication project.

Triyards, however, recorded a net profit of US$6.2 million, down from US$8.2 million for first quarter of 2014.

A different mix of projects produced a lower gross profit margin compared to a year ago. Triyards also recorded a negative goodwill of US$3.9 million for the acquisition of Strategic Marine Group in Q1.

Triyards said it has made a "conscientious effort" to diversify its clientele base and expand its product offering beyond oil and gas to assets such as chemical tanker and windfarm crew transfer vessel. "Therefore the group believes that there will be continued demand for its offering, notwithstanding competitive and challenging environment which the group anticipates in next 12 months."