Net profit for the three-month period dropped by 66% to $2.07m compared to $6.16m in the same period of the previous year.
The reduced profit was blamed on lower gross profit margins resulting from different project mixes as well as competitive market environment, and high administrative and financial expenses.
“Although there was a moderate rebound in oil prices over the past few months, market fundamentals continue to be weak with the demand-supply imbalance largely unresolved,” said Chan Eng Yew, ceo of Triyards.
First quarter revenue for Triyards, however, rose by 17% year-on-year to $91.2m due mainly to higher contributions from two units of multi-purpose support vessels, three chemical tanks, four escort tugs, one scientific research vessel and two oil tankers.
Triyards pointed out that the company’s strategy to diversify its client base and product offering beyond those related to the cyclical oil and gas industry has bode well for the group, with the current orderbook value standing at $352m.
The company’s primary business segment remains focused on fabricating assets for the full oil and gas value chain – construction and production, as well as decommissioning, inspection and maintenance of offshore infrastructure servicing existing offshore fields.
New product lines added include chemical tanker, scientific research vessel, windfarm crew transfer vessel and LNG-powered aluminium catamaran.
“We foresee that market conditions for the oil and gas industry will remain challenging for the next 12-18 months and expect sustained margin pressures for industry players,” Chan commented.