Triyards’ profit surges 30% YoY to US$6.2m

Projects have moved into advanced construction stages.

Triyards Holdings’ profits soared to US$6.2m in the first quarter of FY16, according to a report by OCBC. The report noted that after stripping out a one-off gain from the profits in 1QFY15’s earnings, Triyards’ profit in 1QFY16 reflected a steep 30% climb.

Triyards also saw improved turnover in Q1, driven largely by projects secured during FY15 that progressed into advanced stages of construction. The company asserted that effective cost measures helped maintain administrative expenses at about US$6.6m.

Meanwhile, the company’s net orderbook maintained its record high of US$564m thanks to its recent contract wins worth US$180m. Unlike the four prior consecutive quarters, though, Triyards’ Q1 net orderbook did not see an increase.

OCBC reports, however, that Triyards’ focus on the liftboat business as well as its more diversified offering, it is faring relatively well compared to other offshore and marine peers.

“Looking ahead, it is hard to predict whether the same momentum can be maintained, but management mentioned that it is still looking at a healthy tender book comprising liftboats, dive support vessels and tankers,” the report noted.

Further, the IMO NOx Tier III requirements in North America and US Caribbean Emission Control Areas coming into effect at the beginning of this year may push owners of older vessels which do not meet this requirement into placing orders for new units.