Second quarter net profit rose to MYR40.72m ($12.5m), a jump of 81% from MYR22.47m in the same period of last year.
Revenue also surged 84% year-on-year to MYR275.35m due largely to progressive revenue booked from the sale of seven platform supply vessels (PSVs) and higher utilisation of the group's charter fleet of 14 vessels.
“Our strong financial performance is a clear indicator that we are one of the key beneficiaries of the uptick in booming offshore activities in Malaysia,” said Tiong Su Kouk, executive chairman of Nam Cheong.
Under Malaysia's Economic Transformation Programme, state-owned oil firm Petronas has expanded its capital expenditures plan to MYR300bn for 2011 to 2015, allowing Nam Cheong to secure contracts from Petronas due to their close ties.
The Singapore-listed company has sold a total of 16 offshore vessels worth $311.6m in the first seven months of 2013, surpasssing the seven vessels worth $166.2m sold during the same period last year. It is aiming to surpass its record high of 21 vessel sales achieved in 2012.
Leong Seng Keat, group ceo of Nam Cheong, said: “We continue to see a clear rising trend especially for anchor handling tug supply (AHTS) and PSVs given the replacement cycle for small size AHTS; and opportunities in deeper water developments where PSVs are concerned.”
As at 13 August 2013, Nam Cheong's orderbook was approximately MYR1.4bn in value with 22 vessels contracted for recognition up to 2015.
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