The demand for small size AHTS vessels remains strong as offshore service providers replace older vessels with new and higher specification vessels, Nam Cheong said in a 2011 full year financial statement.
“The outlook is especially optimistic for Malaysia's offshore marine players because Petronas, the country's national oil company, is expected to expand its capex to RM300bn in the next five years,” said Leong Seng Keat, executive director at Nam Cheong.
The Singapore-listed company saw a pick-up in orders in the second half of 2011, winning a slew of contracts consisting of five AHTS vessels, two PSVs, one multi-purpose support vessel and an accommodation work barge.
Its earnings for the full year ended 31 December 2012, however, shrank due to lower shipbuilding revenue being recognised over the year as a result of the spill-over effect of the economic downturn in 2008/2009, when fewer orders of new vessels were received for delivery in 2010/2011.
Nam Cheong posted 2011 net profit of RM93.2m ($30.9m) and revenue of RM606.2m, both of which fell 20% year-on-year.
As at 31 December 2011, Nam Cheong's orderbook stands at approximately RM638m comprising of 11 units of vessels, which are scheduled for delivery stretching until the end of this year.
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