TRIYARDS Buys into Aluminium Shipbuilding Expertise
TRIYARDS Holdings Limited, an offshore vessel fabrication and engineering solutions provider to the oil and gas (O&G) industry, has added new capabilities, products and clients with its latest acquisition of experienced 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. Its two yards – one in Vung Tau, Vietnam, and the other in Singapore – with a total area of 158,648m 2 will increase the Group’s yard capacity by over 67% (excluding Houston). Strategic Marine’s Vietnam yard (area: 147,600 m) is also strategically sited very close to TRIYARDS’ existing 134,000 m2 Vung Tau facility and offers operational synergies and room for growth.
TRIYARDS’ Chief Executive Officer, Mr Chan Eng Yew, said: “Strategic Marine is a good fit for TRIYARDS as we work to build our name in fabrication and engineering solutions and move beyond the construction of Oil & Gas product lines adding capabilities and products which would target a wider clientele base.
“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 S$20.65 million. The share placement, in which 29.5 million new shares were issued at S$0.70 each, was completed on 29 September 2014.
TRIYARDS also announced its results for the full year ended 31 August 2014 (FY14). Net attributable profit (PATMI) came in at US$26.7 million on a revenue of US$268.6 million which was supported by ongoing work on three liftboats – two units of the enhanced BH 335 design and one unit from the proprietary-design BH 450 series which are nearing completion.
For the fourth quarter (4QFY14), TRIYARDS reported strong net cash generated from operating activities of US$27.6 million against an outflow of US$20.1 million previously, affirming the Group’s tight working capital management. With the improved cash flow, TRIYARDS maintained its net gearing at 0.5 times.
Commenting on prospects, 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 to be one of the few Asian players able to construct hybrid steel and aluminium vessels and complex structures.”