Triyards net attributable profit soars 157% to $7.1 million

Strong results in second quarter of 2013.

Triyards Holdings Limited (Triyards) an offshore vessel fabrication and engineering solutions provider to the oil and gas (O&G) industry, reported a strong 157% increase in net attributable profit (PATMI) to US$7.1 million as turnover rose 23% to US$79.4 million for the second quarter ended 28 February 2013, compared to the corresponding financial period of FY12.

The quarter’s healthy set of results were largely driven by the commencement of construction of two BH 450 series Self Elevating Units (SEUs), the latest and largest SEU models from Triyards, as well as the completion of additional customisation work on an offshore support vessel (OSV) in 2QFY13, the company said in a release.

For the half year (1HFY13), the Group delivered revenue of US$132.7 million, an increase of 15% year-on-year, and PATMI of US$13.6 million.

In line with the Group’s goal to strengthen its balance sheet, Triyards achieved a clear turnaround in its net operating cashflow to US$74.6 million in 1HFY13, against an outflow of US$22.3 million in the previous six months. The proactive management of the working capital requirements of its ongoing projects resulted in a net cash position of US$3.9 million at the end of February 2013.

Triyards’ Chief Executive Officer, Mr Wong Bheet Huan, said: “We are pleased with the results achieved thus far. Backed by our sound balance sheet, we are confident of establishing Triyards as a global name in shipbuilding, and cementing our position in technologically advanced Jackups and OSVs.”
Having delivered six first generation SEUs since 2007, Triyards added another milestone in the first half when it began work on its second generation SEU, the BH 450 series.

Jointly designed by Triyards and a renowned US engineering design house, the BH 450 series is ABS classified, self-propelled units equipped with large deck areas and high capacity cranes, as well as individual accommodation for up to 300 personnel. With legs of over 130m (approximately 450 feet) in length, these SEUs are capable of working in deeper waters in excess of 80m (approximately 280 feet).

When completed, the BH 450 will be among the largest of its kind globally. The Group is also currently developing the design for its 3rd generation Jackup called T-300, T-350 and T-400 , with accommodation for up to 360 personnel and incorporates drilling and construction capabilities. With a leg length of over 175m (approximately 575 feet), it will be suitable for work in water depths of up to 120m (approximately 400 feet), and is in the final stages of approval with a classification society.

Mr Wong also expects ship repair to add to Group earnings from 2HFY13 now that floating dock has been completed. “Whilst we expect to secure a good base load of ship repair work , we will continue to expand our client reach as we grow our order book,” added Mr Wong.