Here’s why Triyards is primed to weather the tough offshore and marine environment

It all boils down to a diversified order book.

There’s no denying that the operating environment in the offshore and marine sector is getting tougher by the day, but analysts say Triyards may have an ace up its sleeve.

According to a report by OCBC, Triyards has a more diversified order book compared to its peers in terms of product offerings and clientele base, which is important to weather the operating environment storm.

“For its net order book, liftboats account for 47%, multipurpose support vessels account for 11%, chemical tankers 13% and non-oil and gas orders 22%. In terms of new enquiries, we understand that they are mainly related to dredging purposes, research vessels and vessels used in ports,” OCBC noted.

Meanwhile, OCBC added that the company continues to execute in the tough environment.

“Triyards’s current net order book stands at about US$482m, which is about 1.8x its revenue in FY15. Though the group’s net debt to equity rose to 0.67x from 0.31x as at end FY15, we note that about 94% of its borrowings of US$168.9m relates to working capital financing,” OCBC noted.