Robust vessel sales push Nam Cheong's topline higherCompany News // August 13, 2013
Nam Cheong Limited, Malaysia's largest OSV builder, has reported strong results with an 83 per cent surge in net profit to RM41.1 million for the three months ended June 30, 2013, from RM22.5 million in the corresponding period last year.
Robust vessel sales boosted a revenue growth of 84 per cent to RM275.3 million in the second quarter of 2013, from RM149.8 million in the same period in 2012.
Datuk Tiong Su Kouk, Executive Chairman of Nam Cheong, said: "Our strong financial performance is a clear indicator that we are one of the key beneficiaries of the uptick in booming offshore activity in Malaysia.
"As the country's largest OSV builder, we are strategically placed to tap on growth opportunities in this sector, leveraging on strong relationships with long-standing blue chip customers, and building new ones. Our close ties with Petronas-licensed companies continue to give us our competitive edge in securing contracts.
Leong Seng Keat, Nam Cheong's Group Chief Executive Officer, said: "In the second quarter of 2013, a significant portion of the increase in shipbuilding revenue came mainly from the progressive recognition of revenue derived from PSVs sold.
"Our shipbuilding programme has 12 PSVs for delivery in 2013 as compared to only two in 2012, a clear indication that we have accurately forecasted an increase in demand for this vessel type with the shift of E&P activities away from near shore projects to deeper water."