Triyards Marks Profit Decrease, Boosts Yard Capacity

Singapore Exchange-listed Triyards Holdings Limited has reported a decrease of USD 3.8 million (11%) and USD 5.2 million (45%) in profit before tax for FY14 and 4Q14 respectively, compared to FY13 and 4Q13, attributing the drop to a slimmer revenue, increase in administrative expenses and financial expenses.

The company marked a USD 6.5 million (2%) decrease in revenue for fiscal 2014, compared to FY2013, which the company assigns to lower revenue recognised from two self-elevating units of BH450 series.

This 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 FY14.

Looking ahead, Triyards believes that with the rise of new players in Asia, especially from China, the next 12 months will be more competitive and challenging. Demand for liftboats in Asia is expected to remain buoyant, especially with increasing acceptance of their use. The demand for medium to large sized offshore support vessels should stay relatively healthy, although a decrease in oil prices as a result of slowdown in capital expenditure in Oil & Gas sector was recently noted.

Last week the company has bought two shipyards from the Australian shipbuilding company Strategic Marine for AUD 23 million. The two yards – one in Vung Tau, Vietnam, and the other in Singapore –with a total area of 158,648m 2 will increase Triyards’ yard capacity by over 67% (excluding Houston).

Triyards’ Chief Executive Officer Chan Eng Yew, said: “Strategic Marine is a good fit for Triyards as we work to build our name in fabrication and engineering solutions and move beyond the construction of Oil & Gas product lines adding capabilities and products which would target a wider clientele base.

Besides immediately expanding our product range, we will also have access to the client and market base of Strategic Marine. On top of this, the increased yard space gives us flexibility to grow our ship repair and ship conversion income.”