Triyards Holdings announced last Friday that it is seeking from the SGX-ST an extension of time to announce its 3QFY17 results, which is expected to show a net loss. Due to the depressed state of the oil and gas industry, management is of the opinion that the group should rationalise and reassess the carrying value of certain assets which were acquired or developed previously with plan to deploy for new projects or ventures.

Among the assets under consideration for potential impairment includes properties in Houston which were acquired in 2012 to develop the market for offshore cranes for oil and gas industry in the North Americas and Gulf of Mexico.

Currently management is evaluating a few options to unlock cash in a bid to improve the cash flow for current projects, dependent on which the basis for impairment test will be different. It is expected to take about 21 days to receive the information necessary for evaluating the options.

The provision for impairment is expected to be material and the impairment amount can be assessed objectively only after receipt of information. As such, the 3QFY17 results will not be released on or before 14 Jul; updates on the intended date of release will be issued in due course.

Pending more details, we put our Hold rating and fair value estimate of S$0.33 under review.

Source: OCBC Research - 10 Jul 2017