Triyards turns in profit, adds SEU to order book

JANUARY 9, 2013 — Singapore-listed Triyards Holdings Limited has turned in a first quarter FY 2013 net profit of US$6.5 million and landed a new US$60 million order for a self-elevating unit (SEU). It also announced plans to start designing and producing a new offshore equipment product line at its Houston operation.

Triyards was created last October when Singapore’s Ezra Holdings spun off its engineering and fabrication operations in Vietnam and Houston, Texas. It owns two fabrication yards in Ho Chi Minh City (TRIYARDS SSY) and Vung Tau (TRIYARDS SOFEL) that are equipped with heavy-lift gantry cranes and deepwater berths, and both shipyards have the capability to undertake large-scale projects to fabricate different components of fixed platforms, as well as vessel conversion and construction.

TRIYARDS Houston produces equipment such as cranes, A-frames and winches, which can be installed on the self-elevating units and offshore support and construction vessels fabricated in Vietnam.

First quarter results were driven mainly by revenue recognized from the construction of three offshore support vessels (OSVs) that were in their final stages of completion in the quarter, as well as one self-elevating unit (SEU) that is in its early stage of construction.

“Being a shipbuilder, our earnings are driven by our project portfolio mix as well as the progress of construction milestones,” says CEO Mr. Wong Bheet Huan. “We are also encouraged by the turnaround in our net cashflow from operating activities for 1Q FY13, this being in line with the strategic goals for the Group that we have set for the new year.”

The new $60 million SEU contract from a new client in Southeast Asia to build a BH 335 series SEU. This improved version of the first generation of Triyards SEUs will be fitted with longer leg lengths of 335 ft and is able to operate in water depths of up to 70 m or about 230 ft. The vessel is expected to be completed in FY14.

Other projects in hand include two of the world’s first BH 450 SEU series SEUs, as well as the Lewek Constellation, a state-of-the-art ice-class deepwater multi-lay vessel with heavylift capability.

“Demand for OSVs and SEUs is expected to remain firm in the medium term. We will strive to widen our lead in the construction of technologically advanced SEUs and other offshore support vessels in Southeast Asia,” commented Mr. Wong.

Apart from growing its SEU orders, Triyards plans to broaden its revenue base by expanding its ship repair operations, moving into high-speed aluminum vessels and establishing its own offshore equipment product line, which will be designed and fabricated at its yard in Houston.

“In line with our strategy to expand our offerings, we are currently considering acquisition opportunities across the Asia Pacific region to complement our existing facilities, and extend our suite of products and services,” said Mr. Wong.