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Nam Cheong plunges to a loss of RM2.02b in Q2

MALAYSIAN shipping firm Nam Cheong plunged to the red with a net loss of RM2.02 billion (S$640 million) for its second quarter ended June 30, against a profit of RM3.04 million a year ago, mainly due to assets impairment and written down of RM2 billion.

The RM2 billion consist of impairment on property, plant and equipment, investment in associate, investment properties, and trade and other receivables of RM487.6 million as well as inventories written down of RM1.51 billion.

Revenue went up 29 per cent to RM151.25 million, due to the sale and delivery of two vessels, and the addition of three vessels to the chartering fleet.

Loss per share was 96.56 sen for the quarter compared to earnings per share of 0.14 sen a year ago.

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The group said that the outlook for the offshore and marine sector remains weak and the group anticipates the progress of vessel sales and shipbuilding to remain slow.

It said: "In response to the challenging business environment that the group is operating in, the group has deferred the schedule of deliveries of its vessels currently under construction, both at customers' requests and also at the group's initiative."

Nam Cheong added that it has also taken steps to review its options to restructure its businesses, operations and balance sheet.

The mainboard-listed company has suspended trading since July 21.