TRIYARDS to Construct BH 335 Series SEU for Southeast Asian Client

TRIYARDS Holdings Limited, a fabrication and engineering solutions provider to the oil and gas (O&G) industry, reported a net attributable profit of US$6.5 million for the first quarter ended 30 November 2012 (1Q FY13) as revenue increased 5% to US$53.3 million from the first quarter ended 30 November 2011 (1Q FY12).

The results were driven mainly by revenue recognised from the construction of three offshore support vessels (OSVs) that were in their final stages of completion in 1Q FY13, as well as one self-elevating unit (SEU) which is in its early stage of construction.

In addition, the Group’s net cashflow from operating activities improved by US$18.7 million in 1Q FY13 as compared to the corresponding period in 1Q FY12, mainly due to the collection milestones from these projects.

Commenting on the results, TRIYARDS’ Chief Executive Officer, Mr Wong Bheet Huan, said: “Being a shipbuilder, our earnings are driven by our project portfolio mix as well as the progress of construction milestones. We are also encouraged by the turnaround in our net cashflow from operating activities for 1Q FY13, this being in line with the strategic goals for the Group that we have set for the new year.”

Along with its first-quarter results, the Group also announced a US$60 million contract from a new client in Southeast Asia to build a BH 335 series SEU. This improved version of the first generation of TRIYARDS SEUs will be fitted with longer leg lengths of 335 feet and is able to operate in water depths of up to 70 metres or about 230 feet. The vessel is expected to be completed in FY14.

This new contract will add to the Group’s gross orderbook, which stood at US$643 million as at 30 November 2012. TRIYARDS’ projects in hand include two units of the world’s first BH 450 SEU series SEUs, as well as the Lewek Constellation, a state-of-the-art ice-class deepwater multi-lay vessel with heavylift capability.

“In the short period since we won our first SEU contract in 2007, we have been able to distinguish ourselves as a specialised yard that is fully capable of delivering sophisticated, state-of-the-art vessels. Our latest contract win, which will see the Group building its ninth SEU, underlines the industry’s confidence in TRIYARDS and its engineering and fabrication capabilities.

“Demand for OSVs and SEUs is expected to remain firm in the medium term. We will strive to widen our lead in the construction of technologically advanced SEUs and other offshore support vessels in Southeast Asia,” commented Mr Wong.

In November 2012, the Group reinforced its stronghold in the SEU segment in Asia with a US$90 million order to build its second BH 450, a newly designed 450-foot self-elevating mobile platform service unit.

Apart from growing its SEU orders, TRIYARDS plans to broaden its revenue base by expanding its ship repair operations, moving into high-speed aluminium vessels and establishing its own offshore equipment product line, which will be designed and fabricated at its yard in Houston.

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Press Release, January 10, 2013