Nam Cheong Q4 hit by lower margins

Singapore

NAM Cheong posted a 42 per cent year-on-year slump in net profit to RM41.1 million (S$15.5 million) for the fourth quarter ended Dec 31, 2014 as both gross and operating profit margins fall.

Revenue at the Malaysian-based offshore marine group jumped 29 per cent to RM523.9 million. The shipbuilding segment posted a 32 per cent surge in revenue to RM506.6 million with help from the progressive recognition of revenue derived from platform supply vessels sold in Q4.

The group's Q4 gross profit margin fell from 20 per cent to 15 per cent, at the lower end of the 15-20 per cent range that it maintained. The drag came from the shipbuilding segment, due to higher contribution from build-to-order vessels that yielded lower margins. This resulted in gross profit falling 4 pe…