TRIYARDS wins new liftboat order

TRIYARDS Holdings Limited (TRIYARDS) has secured new orders worth approximately US$100 million comprising of a liftboat, a high speed aluminium craft project including integrated logistics support work and a fabrication project.

These contracts come at the back of two ice-class Multi-Purpose Support Vessels (MPSVs) contracts and a turret fabrication project valued at more than US$100 million in March 2015.

Scheduled for completion in 4QFY2016, the order for the three-legged lattice BH 335 unit will bring TRIYARDS’ current newbuild pipeline to 11 vessels. As an exclusive design to the Group, the BH 335 lattice unit variant has leg lengths that exceed 100 metres (approximately 335 feet) and can accommodate approximately 146 people.

Furthermore, TRIYARDS also secured a project to fabricate core component parts for a land based power plant. Additionally, a high speed aluminium craft project was awarded to TRIYARDS’ wholly-owned Strategic Marine and will be delivered to its client over a period of four years.

Chan Eng Yew, the Group’s Chief Executive Officer, said: “Our fast-growing contract wins across a diverse product range demonstrate the industry’s high regard for our fabrication capabilities in both steel and aluminium vessels. Not only are we able to deliver on our exclusively-designed liftboats, we are also gaining traction in securing other types of vessel orders.

“With these new wins, we enhance our leading position as a global premier liftboat and high speed aluminium craft engineering specialist in Asia.”

Financial results

TRIYARDS also reported its financial results for the six months ended February 28, 2015 (1HFY15) today. Net profit attributable to shareholders came in at US$13.3 million on a turnover of US$117.8 million, supported by ongoing liftboat projects at varying stages of construction, acquisition of Strategic Marine, and other industrial and offshore fabrication projects. The Group also reported an increase in its gross margin to 22.7% from 15.9% the year before, due to a different product mix.

TRIYARDS recorded net cash generated from operating activities of US$25.6 million as compared to an outflow of US$10.6 million in 1HFY14. With this improved cash flow, the Group pared down its net debt (total external indebtedness net of cash and cash equivalents) to equity ratio to 0.4 times from 0.5 times as at end of FY14.

On TRIYARDS’ prospects, Chan commented: “Since the beginning of 2015, we have added some US$275 million to our orderbook. Notwithstanding the challenging and competitive operating environment today, we remain confident that this will grow in the coming quarters, given our established track record and diversified product offering.”

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