TRIYARDS Reports Strong 4QFY15

 

TRIYARDS Holdings Limited (TRIYARDS or the Group) reported a strong finish for the financial year ended 31 August 2015 (FY15) with a 59% year-on-year jump in net attributable profit (PATMI) to US$8.4 million in the fourth quarter, driven mainly by liftboat construction.

Work done on liftboats as well as contributions from aluminium shipbuilder Strategic Marine also lifted Group revenue by 81% to US$88.4 million. For the full year, TRIYARDS achieved a PATMI of US$27.2 million on a revenue of US$270.1 million.

Mr Chan Eng Yew, TRIYARDS’ Chief Executive Officer, said: “These four liftboats were secured earlier in FY15 and the new contract wins in the last 12 months have significantly added to our orderbook visibility despite the competitive and difficult operating conditions.

TRIYARDS’ latest US$100 million order comprises three chemical tankers, two high speed craft and an industrial fabrication contract. One of the wins will see the Group construct three chemical tankers for ship-owner Swiss-Canadian Maritime Ltd, which will be managed by ABC Maritime A.G, who is also one of the world’s leading managers of floating accommodation barges and a strategic partner to many major names in the world of tankers, oil & exploration. Due to be delivered in FY17, each of the new International Maritime Organization (IMO) Type 2-certified, double-hull ice-classed tankers will have a storage capacity of 24,000 cubic metres and will be specially adapted for operating in colder climates.

Swiss-Canadian Maritime Ltd Chairman, Mr. Hans Tanner said: “We have awarded this contract to TRIYARDS based on their strong engineering and fabrication expertise, and also taking into account their excellent track record of building specialised ships for global clients. With these three new builds of chemical tankers, we are poised to strengthen our service offerings to our customers.”

For the industrial fabrication project, TRIYARDS will fabricate core component parts such as steel structures, stacks and casings for a long standing client.

The high speed craft – a 42-metre steel hulled crew boat and a 31-metre catamaran – will be built by wholly-owned Strategic Marine, and delivery is expected to be in 2QFY16.

Looking ahead, Mr Chan said: “Backed by our established engineering and fabrication expertise, we will continue to build on our product range. This, together with our focused marketing in target segments will help TRIYARDS sustain growth despite the challenging environment.

“With a healthy balance sheet, coupled with our year to date achievement in US$600 million order wins provides us earnings visibility into FY17.”

In FY15, TRIYARDS’ net cash generated from operating activities grew to US$58.4 million from US$7.7 million previously on the back of its diligent working capital management.

This added to strengthen its balance sheet which saw the Group’s net debt (total external indebtedness net of cash and cash equivalents) to equity ratio decrease to 0.3 times from 0.5 times as at the end of FY14.