Nam Cheong sinks deeper into the red despite higher revenue

OFFSHORE support vessel builder and owner Nam Cheong sank further into the red in the first quarter as higher operating expenses and finance costs offset its higher revenue.

The group recorded a net loss of RM47.5 million (S$13.4 million) for the three months ended March 31, against a net loss of RM40.1 million in the same period last year.

Revenue for the quarter stood at RM17.9 million. A year ago, revenue was negative RM93.1 million thanks to Perdana Petroleum Berhad's cancellation of an accommodation work barge then.

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