Triyards posts drop in full year earnings

Triyards, the fabrication and engineering arm of Singapore’s Ezra Holdings, recorded a net profit of $26.67m in the financial year ended 31 August 2014, down 15% compared to $31.43m in the previous year.

Full year revenue also dropped 2% year-on-year to $268.62m due mainly to lower revenue recognised from two self-elevating units (SEUs) of BH450 series.

The decrease was partially offset by higher revenue recognised from two SEUs of BH335 series which have progressed into advanced stage of construction during the second half of financial year 2014.

Demand for liftboats in Asia is expected to remain buoyant, especially with increasing acceptance of their use, Singapore-listed Triyards commented.

The demand for medium to large sized offshore support vessels should stay relatively healthy although recently it was noted decrease in oil prices as a result of slowdown in capital expenditure in oil and gas sector, it added.

Last week, Triyards completed its $20.3m acquisition of Australia’s vessel builder Strategic Marine, which has yards in Singapore, Vietnam and Australia.

“Our future earnings will be enhanced by our newly acquired aluminium shipbuilding and fabrication capabilities and the rising momentum of our liftboat contract wins,” said Chan Eng Yew, ceo of Triyards.

“We have set our sights to be one of the few Asian players able to construct hybrid steel and aluminium vessels and complex structures.”