COMPANY PROFILE
2014
Triyards Holdings
+65 63498535 | www.triyards.com
Meeting the challenge
Editorial: Harriet Pattison
Listed on the Singapore Stock Exchange, Triyards offers integrated full-service engineering, fabrication and ship construction solutions for the global offshore and marine industries. A front runner in the fabrication of SEUs in South East Asia with numerous orders in the pipeline, it’s no wonder Triyards has a healthy order book and are amongst the industry leaders. For a company that was only founded less than a decade years ago, the future looks to be an exciting one with new products and services on the horizon‌ Triyards Holdings Limited, the offshore vessel fabrication and engineering solutions provider to the oil and gas industry, focuses on shipbuilding, ship conversions, medium to heavy
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fabrication works and ship repair. The company was founded less than a decade ago in 2005 with the acquisition of its first facility in Vietnam, and has since become the front runner in the fabrication
of self-elevating units (SEUs) in South East Asia. Total World Energy speaks to CEO, Eng Yew Chan, who explains how the company has been significantly increasing its
Triyards capacity and product list since its inception: “We attained our second facility in 2007 and acquired our engineering and design facility for our crane and heavy lifting product line in Houston in 2010. Almost exactly two years ago we were listed on the Singapore Stock Exchange in 2012 and more recently we increased our capacity in Vietnam even further through the acquisition of Strategic Marine.”
“The orders also showcases the confidence clients have in our engineering capabilities. This unit reinforces our versatility and capability in this product segment” For over ten years, Strategic Marine has been building aluminium and steel vessels as well as complex aluminium and steel structures for both the mining and marine infrastructure sectors. The acquisition of its two yards, one in Vung Tau, Vietnam and the other in Singapore, have a total area of 158,648 m2 and will increase Triyard’s yard capacity by over 67%, with the exception of its yard in Houston. Speaking of the acquisition, Mr Chan said in a statement: “Strategic Marine is a good fit for Triyards as we work to build
our name in fabrication and engineering solutions and move beyond the construction of oil & gas product lines adding capabilities and products which would target a wider clientele base.” In a busy ten years, Mr Chan attributes Triyard’s continuing success to its two-fold strategy: “Firstly, with the increased capacity and the proximity of the Vietnamese shipyards from one another we are able to increase our capacity very efficiently as they’re only about 400m to 500m apart. “Secondly, we have a new product line which is aluminium based. This is a little bit unique in our shipbuilding industry in that there are not many shipyards who will be able to do steel products as well as aluminium products efficiently.” Joining the group 12 years ago, Mr Chan’s career began when he started working for Ezra Holdings in 2003 before joining EOC Limited as CFO. In February of this year Mr Chan joined Triyards as CEO.
AN INDUSTRY FIRST A builder of SEUs, Triyards is the first company in the world to construct the 450-feet SEU series, known as the BH-450, they are self-propelled units that boast large deck areas and high capacity cranes. The series also have room for up to 250 personnel in private accommodation and standing at 130m in length, the SEU series have the capability to operate in water depths of up to 90m. In May last year, Triyards became one of only few Singapore
Eng Yew Chan
yards with the capability to both design and build its very own SEUs and jack-ups. It also introduced its new class 400 high pressure, high temperature drilling jack-up rig, the TDU-400. At over 163m, this new innovative product will help to enhance both the engineering expertise whilst withstanding up to 100-knot winds and water depths of an estimated 120m. A large segment of the SEU product line is the building of liftboats to clients on an international scale. With seven built to date, Mr Chan explains that the company has seen a significant number of enquiries for this particular product since July of this year, with an increase in orders. He attributes this surge in interest to the growing momentum in South East Asia and the Middle East for the deployment of liftboats. “We still have a very healthy order book and I think there’s PAGE 3
bookings for both the aluminium product line and our steel products, predominately revolving around the self-elevating units, such as the lifts boats,” he explains. “The liftboat construction time varies; for the smaller units it can be anywhere from 14-16 months, while the larger units can take anywhere between 18-20 months, depending on complexity.” In July this year Triyards completed two liftboat contracts worth US$112 million and more recently, added another liftboat contract to its order book in a deal worth US$50.5 million, which will bring the total value of new building orders to US$162.5 million for the company. With the most recent order due for completion in 2016, Mr Chan
said: “Our recent new orders attests to the industry’s confidence in us and our ability to meet our clients’ stringent requirements on safety, quality, timeliness of delivery and cost efficiency. They also reflect the market’s satisfaction of our engineering and fabrication capabilities. “Operators are starting to realise the high value-to-cost ratio of using liftboats, increasing its demand for these vessels. Our extensive track record, proven designs and fabrication capabilities put us in good stead to gain from this and enhance our lead in this product segment. “The orders also showcases the confidence clients have in our engineering capabilities. This unit reinforces our versatility and capability in this product segment.”
In addition to the company’s engineering capabilities, Mr Chan attributes Triyards continued success in the SEU field to being the early first movers and to its strategic corporate structure: “With regards to our corporate structure, we can actually turn this into commercially viable projects. With larger shipyards these projects may seem a little bit too small, especially with cost efficiencies and overheads, they may not be profitable. Juxtaposed against that is the smaller yard owners who may not be in a comfortable position to build a liftboat which would cost at the very least US$40-$50 million. Triyards is finding itself in quite a comfortable niche, where we are the right size to actually produce these units.”
Marine and Shipbuilding
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Triyards Another major contract for Triyards, contracted to parent company Ezra Holdings, is the Lewek Constellation. A multi-lay offshore construction vessel with ultra-deep-water pipe-laying and lifting capabilities, it provides versatility, speed, maneuverability and a 3,000 MT heavy-lift crane. Completed this year, the Lewek Constellation serves VAALCO Gabon to carry out operations at its Etame Marin Field located offshore of Gabon in West Africa. It has joined EMAS AMC’s Lewek Express pipelayer to carry out offshore works for VAALCO in a contract worth an estimated US$120m.
A STRONG TRACK RECORD It is clear then that Triyards’ increase in activity and capacity has placed them in a key industry position. “For the lift boat product line, I think we have a very strong track record of successful delivery,” explains Mr Chan. The company’s geographical proximities also help to contribute to its success: “If you’re going to order a liftboat from Triyards in Vietnam, to be deployed in South East Asia or to the Middle East or to Africa, the proximity of our facilities to those markets gives us a distinct cost advantage from a transportation and cost perspective.” With 2,000 staff employed directly under Triyards, Mr Chan explains these are split almost equally between the two facilities in Vietnam and the team leaders and project managers are regularly sent for improvement training and refresher courses. When the company delivered the Lewek Constellation to Emas, it employed an estimated 7,000 sub-contractors but on a day
to day basis, Triyards ensure it remains nimble and keeps it staff levels to a minimum.
THE HOUSTON FACILITY In addition to the shipyards in Vietnam and Singapore, Triyards also has an offshore lifting appliance facility located in Houston, Texas. It produces equipment such as active heave-compensated offshore cranes, A-frames and winches which can be installed both on the SEUs and offshore construction vessels that require stringent standards. Mr Chan explains the facility accommodates the design engineering while the fabrication is undertaken in the Vietnamese yards where costs remain much more competitive. “What the Houston office does do is come up with new and innovative product lines that we are now exploring to actually turn into a stock program,” he explains. Looking to the future, Mr Chan explains that Triyards is looking to increase its efforts to market the company on a more international basis in order to build a more diverse client base. With the new aluminium product line that has just been introduced, Triyard’s product portfolio is steadily increasing with a wider variety to offer its clients. “I think it’s a very exciting time for us,” Mr Chan explains, “not only because of the potential upstream and interest in the SEU segment but because we are also basically introducing new products to the market with the Triyards name, such as the aluminium boats. We are also looking forward to the roll out of our new crane product which will compliment the products we have currently very well,” he concludes
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