Triyards reports encouraging first quarter

JANUARY 8, 2016 — Singapore listed Triyards Holdings Limited reports it increased both revenue and net operating profit after tax before other income in its FY 2016 first quarter, the three months ended November 30, 2015

Revenue was up by 38% to US$78.1 million for the quarter, which led to a 52% jump in NOPAT to US$6.1 million.Triyards says the improved turnover was driven largely by projects, which were secured during the prior year – four liftboats and two multi-purpose support vessels (MPSVs) – that have progressed into advanced stages of construction. It says that effective cost controls helped maintain administrative expenses at around US$6.6 million.

Net attributable profit (PATMI) for the quarter came in slightly lower at US$6.2 million, as the US$8.2 million posted in the prior year same quarter was elevated by a one-off gain of US$3.9 million arising from provisional negative goodwill recognized on the acquisition of Strategic Marine .

Commenting on the first quarter, CEO Mr. Chan Eng Yew, said: "Our ability to achieve this set of results amid a challenging operating environment is backed by our success in expanding and diversifying our orderbook.

"Our recent wins from new clients such as ABC Maritime, Taiwan Ocean Research Institute and CPC Corporation, as well as new contracts from repeat clients in the past year, has demonstrate their trust and confidence in our capabilities and the industry's healthy demand for our products and services. We will continue to focus on executing projects-on-hand and managing our capital requirements prudently."

Looking ahead, he said that the company is "working hard to establish other recurrent income streams as we achieve greater inroads for our Triyards-manufactured turrets and cranes."

Triyards currently owns and operates yards in Ho Chi Minh City and Vung Tau in Vietnam and Singapore, as well as design and engineering facilities in Houston.

The group's acquisition of aluminum shipbuilders Strategic Marine (S) Pte. Ltd. and Strategic Marine (V) Company Limited in October 2014 has added new fabrication capacity as well as and engineering capabilities.

Its shipyards in Vietnam are equipped with heavy-lift gantry cranes and deepwater berths, and both have the capability to undertake large-scale projects to fabricate different components of fixed platforms, as well as vessel conversion and construction.Triyards Houston provides the designing and engineering of offshore equipment such as cranes, A-frames and winches that can be installed on  self-elevating units and offshore support and construction vessels.

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