Niche offshore fabrication yard. Triyards is an engineering and fabrication solutions provider with two yards in Vietnam and one fabrication facility in Houston,US. Triyards focuses on the construction of advanced offshore construction and support vessels (OCSV) and self-elevating units (SEU), which include liftboats and small drilling and production jack-ups.
Synergies with Ezra. Triyards was spun out of Singapore-listed oil & gas services company Ezra Holdings via a 1-10 distribution-in-specie. Ezra’s shareholders received 1 Triyard share for every 10 Ezra shares. Ezra still retains a 67% stake in Triyards. Triyards will continue to tap on Ezra’s fleet expansion plans for new-build and maintenance contracts.
Proxy to rising demand for SEUs. Triyards is a proxy to rising demand for SEUs as it is a leading builder of such vessels in Southeast Asia. Demand for SEUs will continue to grow in Southeast Asia, the Middle East andWest Africa on the back of growing maintenance needs and a limited supply of such vessels in these regions. SEUs are a safer and more cost-efficient alternative compared with work barges, and are also cheaper than the traditional jack-up rigs.
Geared for growth. Triyards will embark on growth through: a) expanding its range of SEUs and OCSVs, b) expansion in Brazil and Australia, and c) diversification into new product categories, such as high-speed aluminium commercial and naval vessels. As a result, Triyards is likely to acquire fabrication yards in the region to expand capacity and upgrade its capabilities.
Strong earnings growth. 1HFY12 revenue grew 267.5% yoy to US$83.9m, due to the commencement of construction of the Lewek Constellation, an ice-class construction vessel. As a result, Triyards recorded a profit after tax of US$14.5m, from a loss of US$1.1m in 1HFY11.
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