APRIL 7, 2016 — Singapore headquartered Triyards Holdings Limited today reported second quarter FY2016 results that included increased revenues and profits and reported that it has booked four new orders worth a total US$17.8 million.
The orders cover the construction of three wind farm support vessels and a luxury river cruise vessel.
"These contracts are the result of our conscientious efforts to diversify our client base and product offering. In addition, the wind farm vessel orders attest to our growing standing in the renewable energy market," said Triyards' CEO Mr. Chan Eng Yew. "We will continue to establish a greater foothold in this sector as well as seek opportunities in addition to those in a traditional market."
Equipped with either the Quad Volvo IPS or Quad WaterJet propulsion engines, each wind farm vessel can cruise at a speed of at least 25 knots and carry up to 24 passengers. The aluminum craft will also be fitted with deck cranes with lifting capacities of up to 10 tonnes.
The 65-m cruise vessel will be built for Compagnie Fluviale du Mekong by CroisiEurope, an established European cruise operator, and will ply the Mekong River between Vietnam and Siem Reap, Cambodia.
The vessel is described as "designed with a rustic charm" and will have 30 cabins with private balconies as well as a swimming pool on the sun deck.
Triyards' financial results for the three months ended February 29, 2016 (2QFY16) saw net profit attributable to shareholders (PATMI) reach US$5.3 million on a 15% higher revenue of US$70.5 million, largely supported by work done on four liftboats, two multi-purpose support vessels and three chemical tankers. The construction of aluminum crew boats and wind farm vessels by subsidiary Strategic Marine Group also contributed to the results.
Gross profit rose 8% to US$14.8 million.
In line with its growing orderbook, which stands at US$513 million as at February 29, 2016, the Group's net debt (total external indebtedness net of cash and cash equivalents) to equity ratio rose to 0.55 times from 0.31 times as at the end of FY15. Excluding project-related financing, Triyards' net debt to equity ratio is 0.04 times.
"We are confident that our versatile capabilities will enable us to stay resilient in this difficult operating environment," said Mr. Chan. "Our focus remains on delivering on our orderbook and executing on our successful diversification strategy."
Triyards currently owns and operates shipyards in Ho Chi Minh City and Vung Tau in Vietnam and Singapore, as well as design and engineering facilities in Houston in the United States. Its acquisition of aluminium shipbuilders Strategic Marine (S) Pte. Ltd. and Strategic Marine (V) Company Limited in October 2014 has added new fabrication capacity and engineering capabilities.