Triyards swings into a net loss of $86.3m

Unexpected costs and delayed deliveries dragged the earnings.

Triyards Holdings (Triyards) scrambled to keep things together after reporting a loss of $86.3m for the third quarter.

It also suffered a 62% drop in yearly revenue to $42.1m and an allowance of $61.5m from asset impairment.

In a report, OCBC Investment Research analyst Low Pei Han said the company gross loss was due to lower revenue from the delay of delivery of multi-purpose supply vessels (MPSVs), unexpected costs for its chemical tankers project, and compressed margins.

The company's Houston properties, along with some reassessment of carrying value of assets developed for the oil and gas (O&G) industry, also accounted for the $61.5m allowance.

In a statement, Triyards Chief Executive Officer Chan Eng Yew said, "“In the absence of a positive catalytic industry development, we expect the next twelve months to be a challenging period for the industry as a whole and also the Group."

OCBC Research also reported that the company's net order book still stands at $190.8m to $218.0m.