Nam Cheong slides to RM21.5m Q4 loss, stops dividend

OFFSHORE support vessel builder Nam Cheong reported a net loss of RM21.5 million (S$7.1 million) for its fourth quarter ended Dec 31, 2015, compared to a net profit of RM41.1 million a year ago.

Revenue fell 54 per cent to RM241.8 million from RM523.9 million a year ago.

For the full year, net profit fell 91 per cent to RM28.5 million while revenue halved to RM950 million.

The group said that due to lower oil prices, oil companies have been cutting capital expenditure and operating costs, and the outlook for the offshore and marine sector remains weak. It said the progress of vessel sales and shipbuilding will remain slow.

Nam Cheong has deferred the schedule of deliveries of its vessels currently under construction, both at customers' requests and also at the group's initiative, it said.

Gross order book was RM1.2 billion at end-2015, with a mix of vessels due for delivery till 2018.

No final dividend was declared compared to S$0.015 a share a year ago.

Nam Cheong last traded at S$0.097 a share.