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Lower revenue, absence of fair value gain hit Nam Cheong's Q2 earnings

Nam Cheong on Thursday posted a plunge in net profit to RM3 million for its second quarter ended June 30, 2016, down from RM10.7 million a year ago.

The Malaysia-headquartered offshore marine group's revenue fell 39 per cent to RM117.4 million due to a revenue drop from the shipbuilding segment and vessel chartering segment.

The bottom line was further dented by the absence of a net fair value gain on derivatives of RM10.9 million seen in Q2 2015. This led other income in Q2 2016 to decline 82 per cent to RM2.5 million, from RM13.8 million a year ago.

Earnings per share fell to 0.14 sen, from 0.51 sen a year ago.