1) What is TRIYARDS growth strategy, given intense competition from big and mid-sized shipyards in Singapore, China and the region?
TRIYARDS has a multi-prong strategy for sustainable growth. We will:
- Focus on maintaining our position as the leading liftboat builder in Asia with our proven track record, competitive costs and quality.
- Expand our range of vessel offerings - which includes sophisticated offshore support vessels and aluminium crafts - to tap on the vessel replacement market.
- Enhance value synergies through the development of our own offshore equipment product line and diversify the product offering and client base beyond the offshore oil and gas industry into marine and industrial fabrication. We also target to expand our on-shore/offshore fabricating services via the crane business and industrial segments.
2) What are the Group's competitive strengths?
- Proven track record: The Group has delivered the largest number of liftboats in Asia, covering the full range of liftboats available worldwide - three-legged and four-legged tubular and lattice vessels. We are thus able to meet the requirements of different operating areas around the globe.
- Strong design and engineering capabilities: The Group has delivered a wide range of vessels, from sophisticated ice-class multi-lay offshore construction vessel for deep waters, to shallow waters anchor handlers and even offshore equipment like cranes and turrets. We are able to build customised products to meet the needs of our different buyers.
- Diversified product offering: We produce a wide range of offshore support vessels that are deployed on the entire oil & gas life cycle, which makes us less vulnerable to volatile oil prices. The Group has also expanded our product offering to include aluminium vessels with the acquisition of Strategic Marine.
- Proximity of Vietnam to the market: Vietnam is the 6th largest shipbuilding country in the world. Its proximity to different markets, as compared to China, enhances our cost-competitiveness and shortens our delivery time to end users.
3) What will drive the adoption and demand of liftboats in Asia?
- Need for greater cost efficiency: In this volatile oil price environment, offshore operators are looking for more cost-efficient solutions. Liftboats, which are self-propelled, offer significant reduction in downtime and have competitive day rates. They are thus more cost efficient compared to deploying both an accommodation tender barge and an AHTS for repair and maintenance of offshore platforms.
- Capacity for more liftboats: In North America, where liftboats are preferred for their operational versatility, the ratio of offshore platforms to liftboats is 14:1. This same ratio for Southeast Asia, Middle East and West Africa is 60:1.
- IRM of offshore rigs: Liftboats are built to service the segments less affected by the oil price downturn, such as inspection, repair and maintenance of offshore rigs. As activities in these segments are expected to continue, the need for more liftboats will gradually increase.
4) Does TRIYARDS have a formal dividend policy?
- TRIYARDS does not have a formal dividend policy but it is always the Group's desire and policy to reward our loyal shareholders.
- The form, frequency and amount of future dividends will depend on, amongst other things, our future earnings, cash flow and financial condition, capital requirements as well as general business conditions and other factors that our Directors may consider appropriate.
5) What is the rationale for the Share Buyback Mandate?
- This mandate gives the flexibility to manage any unexpected volatility in TRIYARDS' share price.
- Also, it allows the Group to buy back shares for its staff share performance plans, where these treasury shares can be issued to performing employees.
- The Board will make the necessary recommendations and execute the share buyback mandate when appropriate.