Nam Cheong reports 83% drop in Q2 profit

OFFSHORE marine player Nam Cheong saw net profit for the second quarter ended June 30 slump 83 per cent year on year to RM10.68 million (S$3.73 million), as both its shipbuilding and vessel chartering businesses turned in lower contributions.

Revenue for the quarter was down 49 per cent to RM192.66 million with revenue from its shipbuilding segment halving on lower oil prices. Meanwhile, revenue from its vessel chartering business also slumped 42 per cent.

Earnings per share came to 0.51 sen, down from 3.01 sen a year ago.

For the half year, net profit was 63 per cent lower at RM49.98 million and revenue was 34 per cent lower at RM518.91 million.

Executive chairman Tiong Su Kouk said: "The macro volatilities have continued to present challenges for all industry players during the period and we have likewise seen a slowdown in new orders."

However, he added: "We have gone through many cycles over the past four decades of running the business and have in place strategies that have continued to help us to counter downcycles. We remain optimistic on our global market position as the cost leader in the offshore marine space, which will allow us to capture the potential industry uptick as soon as the market turns favourable."