Triyards reports 13% jump in Q1 profit and US$75.4 million in lifeboat orders

Mainboard-listed Triyards Holdings announced on Thursday it has secured US$75.4 million (S$100.88 million) in new liftboat orders as it also reported a 13 per cent jump in net profit to US$8.2 million (S$10.97 million) for the first quarter of its 2015 financial year, ended Nov 30, 2014.

The offshore engineering group said revenue over the same period tumbled 37 per cent to US$56.7 million from tje year-ago period when it had recorded higher contributions from a subsea construction vessel, Lewek Constellation, and three self-elevating units (SEUs). These were either fully completed or at final completion stage as at Nov 30, 2014, resulting in lower revenue recognised in Q1 FY15, the company said in a statement.

Triyards' revenue in Q1 FY15 was mainly from ongoing liftboats projects as well as revenue from an offshore fabrication project and the contribution from aluminium shipbuilder, Strategic Marine Group.

Its improved profit was mainly from higher margins from an offshore fabrication project and different mix of projects at their respective completion stages, Triyards said.

It said its growing business continues to be backed with a healthy balance sheet. As at end November 2014, Triyards' net debt to equity ratio remained steady at 0.48 times.

For the three months ended Nov 30, 2014, earnings per share stood at 2.61 cents, while net asset value per share was 59.48 cents.

Triyards acknowledged that the recent slide in oil prices could potentially lead to reduction or delay of oil & gas capital expenditure, especially for exploration activities.

However, as a full value chain player, Triyards believes there will be continued demand for its offerings, notwithstanding the competitive and challenging environment which it anticipates in the next 12 months.

Triyards said the latest liftboat contracts not only add to its orderbook, but also extend its earnings visibility into its financial year ending 31 August 2016 (FY16). It said its current newbuild pipeline has quickly grown to eight liftboats, having won five new orders in the last six months.

Said Triyards chief executive officer Chan Eng Yew: "Our pace of recent contract wins reflects confidence in our ability to meet exacting industry standards and expectations of our discerning clients. We will remain focused on strengthening our lead in liftboats in Asia, the Middle East and West Africa."