Triyards reports increased earnings

APRIL 10, 2014 — Singapore's Triyards Holdings Limited has booked a net attributable profit (PATMI) of US$7.8 million for the second quarter ended February 28, 2014 (2QFY14), an increase of 9% year-on-year.

Revenue for the quarter came in at US$74.5 million, with the commencement of construction of the Group's tenth Self-Elevating Unit (SEU), a contract for Triyards' BH 335 series which was secured in October 2013.

Gross profit margin improved from 15% in second quarter FY 2013 to 18% in second quarter FY 2014 as the Group derived higher margin income from ship repair and the completion of one turret unit for a Floating Storage Offloading vessel in Indonesia.

"Our results demonstrate our ability to deliver a consistent performance based on our strategy to focus on the niche area of SEU fabrication," said Triyards' CEO Mr. Chan Eng Yew. "Notwithstanding that, Triyards will continue to look at other emerging opportunities. We are delighted that we are gaining ground in ship repair, as we are able to leverage our longstanding reputation for strong technical capabilities and timely deliveries to expand into other lucrative businesses in the marine industry and diversify our income streams."

The Group secured two ship repair contracts recently. The first deal is signed with a global marine transportation services provider that owns, operates and manages a modern fleet of offshore support vessels. Under this contract, Triyards will carry out drydocking of a 10,700 BHP, DP2 anchor handling tug supply vessel. The works include polishing and overhauling of bow thrusters, and overhauling of stern thrusters. The second contract is with a Singapore-based major offshore marine services provider to perform repairs on a 16,000 BHP, DP2 anchor handling tug supply vessel. The scope of work includes cleaning and flushing of the main winch hydraulic pipeline, removal of the main hydraulic pump for inspection and replacement of the stern roller seals.