Nam Cheong’s quarterly revenues drop 54 percent

Malaysia’s offshore support vessel builder, Nam Cheong, has informed that its revenues for the fourth quarter 2015 dropped by 54%. 

The company’s revenues dropped from RM523.9 million in 4Q 2014, to RM241.8 million in 4Q 2015.

Further, the company’s net loss for the quarter was RM21.5 million, compared to a profit of RM41.1 million in 4Q 2014.

The company also said that its revenues for the year 2015 dropped 51% to RM950 million from RM1.9 billion in the previous corresponding year (FY2014), due mainly to a reduction in the shipbuilding business segment’s revenue.

This resulted from a lower number of vessels that were completed and delivered, from 24 in FY2014 to 11 during 2015.

The group’s net profit after tax in FY2015 declined to RM27.9 million from RM302.2 million in FY2014.

Nam Cheong’s gross order book stood at approximately RM1.2 billion as at December 31, 2015, comprising of a mix of OSVs that are due for deliveries up till 2018.

Due to the challenging outlook of the industry and business environment, and at the request of its customers and its own initiative, the OSV builder deferred the schedule of vessel deliveries that are currently under construction.

Leong Seng Keat, Nam Cheong’s Group Chief Executive Officer, said: “Over the shorter-term, challenges of oversupply in oil will likely take some time to rebalance. In the mid to longer-term however, we believe prospects for the OSV market remain encouraging.”

Offshore Energy Today Staff

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