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Nam Cheong achieves earnings growth in 2014

Nam Cheong achieves earnings growth in 2014
Malaysia’s OSV builder Nam Cheong has achieved a stronger set of results for its financial year ended 31 December 2014.

Net profit for the full year rose to MYR302.2m ($83.5m), a jump of 47% compared to a gain of MYR206.2m in 2013.

Revenue for the year also rose 53% year-on-year to MYR1.9bn, supported by an increased number of vessels delivered. In 2014, the shipbuilder delivered 24 vessels compared to 20 in 2013.

As at 31 December 2014, the company’s orderbook stood at MYR1.7bn comprising of a mix of 26 OSVs due for deliveries up to 2016.

“Repeat customers form a strong pillar of Nam Cheong’s business and our FY2014 results reflect the robust demand for our vessels by customers (…),” commented Tiong Su Kouk, executive chairman of Nam Cheong.

Group ceo Leong Seng Keat pointed out that the company’s strategy remains focused on the shallow water segment, which is more resilient and less affected by the current volatility in oil prices compared to the deepwater segment.

“We expect to benefit from an increase in cumulative planned offshore infrastructure developments in the segment over the next few years,” Leong said.

“This is largely due to more oil fields coming on-stream than those being decommissioned. Further, we also anticipate greater demand for our vessels, particularly from shallow water geographical regions as a result of the expected global delivery of more than 100 modern jack-up rigs between 2015 and 2017.”