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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.

Lee Hong Liang, Asia Correspondent

February 12, 2015

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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.”

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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