“The demand for small size AHTS vessels remains strong as offshore service providers replace older vessels with new and higher specification vessels,” said Leong Seng Keat, executive director of Nam Cheong.
In Malaysia, the offshore marine industry is benefiting from investments spurred on by the country's Economic Transformation Programme, Nam Cheong noted. It added that new businesses relating to top side maintenance, hook up and commissioning and exploitation of reserves from marginal fields have created new opportunities for the company's business.
Coastal Contracts remains upbeat on the offshore and marine sector in 2013 underpinned by growing energy demand from developing countries.
“The group foresees the oil and gas market outlook for 2013 remains positive given that the offshore supply vessel (OSV) market is expected on a gradual road of recovery,” Coastal Contracts said.
The company has chosen to focus on building more expensive technologically advanced and deepwater-capable vessels in future given that the demand is anticipated to increase consistently with the increase in deepwater fields.
The Kuala Lumpur-listed company is looking ahead to shrug off a poor set of full results it announced on Monday. Full year net profit dropped 37.8% year-on-year to MYR118.59m ($38.27m). Revenue, however, rose 6.3% to MYR764.37m.
The Singapore-listed Nam Cheong has benefited from the increased offshore activities, as evident by its stellar full year results ended 31 December 2012. Nam Cheong posted a 47% year-on-year surge in net profit to MYR136.59m ($44.08m) and a 45% jump in revenue to MYR876.57m.
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