Tuesday, October 20, 2015

Triyards

Triyards: 4QFY15 net profit leapt 59% y/y to US$8.4m (+59% y/y), bringing FY15 earnings to US$27.2m (+2%), 5% above street estimates.

For the quarter, revenue surged 81% to US$88.4m due mainly to contributions of four self-elevating units, and recently-acquired aluminium shipbuilder Strategic Marine.

However, gross margin slipped to 21.8% (3QFY15: 22.1%; 4QFY14: 27%) due to the change in sales mix.

First and final DPS was maintained at 1¢.

Separately, Triyards announced US$100m of new orders, comprising three chemical tankers for ship-owner Swiss-Canadian Maritime, two high speed craft and an industrial fabrication contract.

The new contracts are due to be delivered between 2QFY16 and FY17, and bring year-to-date order wins to US$600m.

Management is of the view that while the weak oil prices have led to the reduction or delay of oil & gas capital expenditure, particularly in exploration activities, Triyards' exposure to the full O&G value chain is expected to shelter the group from the downturn.

At the currrent price, Triyards trades at 3.8x trailing P/E and 0.46x P/B.

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