Triyards

Triyards: Key feature in the Edge, where the co. is banking on its new proprietary jack-up design to raise cachet as rigbuilder. The TDU 400 rig is Triyards 3rd rig design since it began building jack-up rigs for the O&G in 2006. The rig is targeted for work under milder weather conditions in areas that include Asean, West Africa and Gulf of Mexico. The grp benefits from lower labour and input costs, owing to its strong foothold in Vietnam, where it runs 2 shipyards. The grp is currently marketing its TDU400 to customers and are already seeing a strong level of enquiries from its exisiting customers as well as new customers. In the meantime, Triyards will have plenty of work to keep its yards busy, where it has built and delivered several large deepwater OSVs and aims to clinch more work by providing MRO to Ezra’s 55 OSVGs. Triyards has an orderbook amounting to ~US$324m and a net cash position of 1.6c/share. The grp trades at 7.9x FY14E P/E.