TRIYARDS' Robust Growth Despite Challenges

TRIYARDS Holdings Limited reported its financial year ended 31 August 2016 (“FY16”) with revenues of US$324.9 million, a 20% increase from the previous financial year (“FY15”). Similarly, revenues increased by 7% year-on-year to US$94.2 million for the three months ended 31 August 2016 (“4QFY16”). The increases in FY16 and 4QFY16 were driven by contributions across all product and geographical segments.
 
Asia and Europe continue to be resilient markets with revenue in FY16 increasing by 5% and 9% respectively from FY15. In aggregate, Asia and Europe contributed 80% of total FY16 revenues. As a result of the Group’s strategy to diversify its client base across geographies, contribution from the Other Countries segment increased by 140% to reach US$63.5 million in FY16.
 
For 4QFY16 and FY16, net attributable profit (“PATMI”) fell to US$2.2 million and US$17.8 million respectively from its corresponding periods mainly due to lower gross profit margins resulting from different mix of projects and an absence of non-recurring negative goodwill amounting to US$3.6 million recognised in FY15.
 
Commenting on the Group’s performance, Mr Chan Eng Yew, Chief Executive Officer of TRIYARDS said: “while oil prices have recovered slightly since the beginning of this year, we are keenly aware that customers remain cautious. The Group continues to build on our product range and client base, focusing on within-budget and on-time execution of quality and high performance vessels. This strategy has allowed us to grow our revenues despite the challenging market conditions.”
 
During the year, Saigon Offshore Fabrication and Engineering Ltd, a wholly-owned subsidiary of TRIYARDS, was accorded the API-2C Monogram Certificate for crane manufacturers set by the American Petroleum Institute (API). It is the first such facility in Vietnam to receive this certificate.
 
The Group has today also announced that it has been awarded a contract for its facility, Saigon Offshore Fabrication and Engineering Limited (SOFEL) to build a floating dock for a client in the Middle East.
 
The 134.4 metres-long floating dock, designed in collaboration with Greenbay Marine Pte Ltd, is capable of lifting a vessel with a weight of 7,000 tonnes and has a draft of 12.6 metres.
 
The Group is also pleased to announce that it has also secured several new fabrication and service vessel contract. These new contracts add a total of US$27.55 million to TRIYARDS’ order book which currently stands at US$422 million.
 
On the latest string of contract wins, Mr Chan added: “This further underscores TRIYARDS’ reputation for its versatile engineering capabilities and the success of our diversification strategy. As we enter FY17, we remain committed to forging strong partnerships with our clients whilst delivering on our commitment to quality and safety.