Offshore service vessel (OSV) provider Nam Cheong has reported a net profit of RM50.9 million ($15.3 million) for the 3QFY2024 ended Sept 30, down 19% y-o-y from the same period last year.
For the period, earnings per share stood at 11.74 sen, down from 72.81 sen in 3QFY2024.
This came on the back of higher selling and administrative expenses and operating expenses for the period.
Meanwhile, the group’s revenue from its vessel chartering division saw a 34% y-o-y increase to RM200.4 million, driven by improved daily charter rates and an increase in fleet size in 2024.
That said, Nam Cheong’s shipbuilding segment did not record any revenue for both 3QFY2024 and 3QFY2023 as there was no vessel scheduled for delivery during the period.
Gross profit for 3QFY2024 was up 148% y-o-y at RM115.4 million, in line with the group’s revenue growth. Gross margin for the period stood at 58%, up by 26.5 percentage points (ppt) y-o-y.
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Leong Seng Keat, CEO of Nam Cheong, says, “Following the successful debt restructuring in March, our primary focus now is to enhance our performance by capitalising on the favourable offshore and marine market conditions. Our commitment to long-term and sustainable development remains unwavering. Despite the macroeconomic uncertainties, we will remain agile and effectively address any emerging challenges that lie ahead.”
Shares in Nam Cheong closed 1.5 cents lower, or down 3.61%, at 40 cents on Nov 13.
