Nam Cheong Ltd booked a profit attributable to owners of the parent of RM45.85 million for the third quarter ended 30 September 2025, a 3% year-on-year (YoY) decline as higher vessel maintenance costs partly offset the benefit of new long-term charters that lifted fleet utilisation.
Revenue slipped 15% YoY to RM170.79 million, entirely from the vessel-chartering segment. No dividend was declared in the quarter.
By activity, vessel chartering contributed 100% of turnover. The utilisation rate averaged 70%, compared with 86% a year earlier but improved from 68% in the preceding quarter as additional multi-year contracts commenced. Gross profit fell 24% YoY to RM87.45 million, although the gross margin remained robust at 51.2%, easing from 57.6% a year earlier. Operating profit declined 26% YoY to RM61.84 million, while core PATMI, which excludes one-off items and associate contributions, dropped 20% to RM55.33 million.
Higher scheduled maintenance expenses and a one-off litigation settlement weighed on profitability, and finance costs rose 9% YoY to RM5.90 million.
Management is pursuing a strategy to secure long-term fixtures for about 70% of the fleet to underpin revenue visibility and intends to enlarge its fleet selectively to capture demand arising from an ageing global offshore support vessel population. The company said enquiries for newbuild orders are increasing as the average global OSV age reaches 15–16 years.
Chief executive officer Leong Seng Keat noted that sequential improvements in utilisation since the second quarter have supported revenue and maintained gross margins above 50%. He added that stable cash flow from chartering will underpin a “disciplined and selective” approach to potential newbuild programmes. The group remains “cautiously optimistic” for 2026, citing structural supply constraints in Malaysia’s OSV market, limited availability of financing for new tonnage and supportive charter-rate conditions amid steady growth in regional oil production.
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