Singapore-listed Triyards acquires aluminium shipbuilding company

Mainboard-listed Triyards Holdings, an offshore vessel fabrication and engineering solutions provider to the oil and gas industry, said it has added new capabilities, products and clients with its A$23.3 million (S$25.97 million) acquisition of shipbuilding and fabrication companies, Strategic Marine (S) Pte Ltd and Strategic Marine (V) Co. Limited (collectively termed Strategic Marine).

Strategic Marine has been building aluminium and steel vessels as well as complex aluminium and steel structures for the marine infrastructure and mining sectors for over 10 years, Triyads said in a statement on Monday.

Strategic Marine has two yards - one in Vung Tau, Vietnam, and the other in Singapore - with a total area of 158,648 metres.

Strategic Marine's Vietnam yard is also strategically sited very close to Triyards' existing Vung Tau facility and offers operational synergies and room for growth.

Triyards' Chief Executive Officer, Mr Chan Eng Yew, said: "Besides immediately expanding our product range, we will also have access to the client and market base of Strategic Marine. On top of this, the increased yard space gives us flexibility to grow our ship repair and ship conversion income."

The deal was funded by cash and the Group's recent share placement proceeds of $20.65 million.

Triyards also announced its results for the full year ended 31 August 2014. Net attributable profit (PATMI) came in at US$26.7 million (S$33.92 million) on a revenue of US$268.6 million which was supported by ongoing work on three liftboats.

For the fourth quarter (4QFY14), Triyards reported net cash generated from operating activities of US$27.6 million against an outflow of US$20.1 million. Triyards maintained its net gearing at 0.5 times.

Commenting on the company's outlook, Mr Chan said: "Our future earnings will be enhanced by our newly acquired aluminium shipbuilding and fabrication capabilities and the rising momentum of our liftboat contract wins.

"We have set our sights on becoming one of the few Asian players able to construct hybrid steel and aluminium vessels and complex structures."