Nam Cheong, the Malaysian offshore support vessel builder and charterer, has seen its second-half profit triple compared with a year ago as it continues its rehabilitation.
The Singapore-listed company posted net income of MYR 115.6m ($24.3m) for the six months ended 31 December 2023 versus the MYR 36.3m seen 12 months earlier.
Revenue increased by 37% year on year to MYR 274.75m, mainly driven by continued improvement in daily OSV charter rates and higher utilisation rates.
Full-year net income was MYR 147.3m versus the MYR 67.9m seen in 2022, while revenue increased 30% to MYR 475.2m.
“2023 marks another year of growth for the group, reflecting not only our encouraging financial results but also in the notable milestones reached in our restructuring journey,” Nam Cheong chief executive Leong Seng Keat said.
“We are delighted to see the revenue crossing the MYR 400m mark for the first time since the prolonged business downturn since 2015.
“The consistent improvement in our business fundamentals underpins the group’s momentum towards its gradual recovery,” he added.
Nam Cheong said the world oil market continues gaining growth momentum which favours the upstream marine and offshore sectors, reinforcing the demand for offshore support vessels.
“In Malaysia, Petronas, a key player in the oil and gas industry, recently announced to sustain and grow Malaysia’s oil and gas production to 2m barrels of oil equivalent per day by 2025 and beyond,” Nam Cheong said.
“This uptick in production activities is anticipated to enhance overall vessel utilisation for local OSV operators, including our group.
“The positive outlook for OSV owners is further strengthened by the limited supply of OSVs due to minimal investments in new vessels in recent years,” the company added.
Nam Cheong said the supportive industry outlook bodes well for the group.
“Together with the significant progress achieved in the restructuring process, the group is on track for its gradual recovery and the resumption of a multi-year growth trajectory,” it added.
Nam Cheong is Malaysia’s largest OSV builder, owning and operating one of the largest shipbuilding yards for OSVs in the country.
It is also expanding its vessel chartering operations, with the group operating a fleet of about 30 vessels.
