Impairment charges push Triyards into loss

JULY 21, 2017 — Singapore headquartered Triyards Holdings Limited has reported its results for the three months and nine months ended May 31. Losses after tax came in at US$63.3 million for 3QFY17 and US$67.5 million for 9MFY17, as compared to a profit of US$4.1 million and US$15.6 million registered in the prior year corresponding periods.

The decrease in profits was primarily due to impairment of assets, lower revenue contribution and cost overruns from certain projects.

"The prolonged depressed state of the marine and oil and gas industries coupled the fiercely competitive market environment has negatively impacted the carrying value of assets across the industry," said Mr Chan Eng Yew, Chief Executive Officer of Triyards. "In light of the market weakness, the Group has taken a prudent approach and made an allowance amounting to US$45.1 million for the impairment of certain assets in 3QFY17."

The Group reported revenue of US$30.9 million for 3QFY17, registering a year-on-year ("y-o-y") decrease of 62% while y-o-y revenue for 9MFY17 fell by 16% to US$192.8 million. This comes on the back of lower contributions from shipbuilder Strategic Marine Group for the construction of aluminum vessel projects and significantly lower contributions due to the completed deliveries of five self-elevating units over the past 12 months. The decreases were partially offset by contributions from two multi-purpose support vessels, three chemical tankers, four escort tugs, onescientific research vessel, two oil tankers and a floating dock during the financial period under review.

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