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Nam Cheong Q3 profit more than doubles to $37.6m

Malaysia’s OSV builder Nam Cheong has seen third quarter net profit more than doubled from a year ago as revenue jumped on an increase in order wins.

Lee Hong Liang, Asia Correspondent

November 11, 2014

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Net profit in the quarter more than doubled by 112% to a record MYR125.6m ($37.6m) from MYR59.2m in the previous corresponding period.

Revenue also soared by 86% year-on-year to MYR595.1m during the quarter, largely contributed by the increase in order wins of 16 vessels compared to seven vessels in the third quarter of 2013.

“The momentum of our order wins remains robust, with Nam Cheong securing a record order of 25 vessels worth approximately $505m on a year-to-date basis,” said Tiong Su Kuok, executive chairman of Nam Cheong.

Last month, Nam Cheong secured letters of intent worth $186m for the sale and charter of 12 of its newly-designed AHTS vessels, including options for eight additional units.

Leong Seng Keat, group ceo of Nam Cheong, commented: “Moving ahead, we remain confident in benefiting from our strong reputation within the highly resilient shallow water segment as we continue to see strong demand for AHTS vessels and other OSVs especially from this segment.”

Recently, Nam Cheong entered into a partnership with Singapore’s Marco Polo Marine to form a joint venture with an investment in their indirect Indonesian subsidiary PT Pelayaran Nasional Bina Buana Raya tbk (BBR).

Nam Cheong believes that the partnership for investments in OSVs would allow it to strengthen its position in the cabotage-protected Indonesian market.

As at 30 September 2014, Nam Cheong’s orderbook for OSVs is worth about MYR1.9bn with deliveries up until 2016.

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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