SINGAPORE: Nam Cheong Ltd, a leading global offshore marine player announced that it achieved revenue of RM1.9 billion for the financial year ended Dec 31, 2014.
This is an increase of 53 per cent compared to the RM1.3 billion in the previous corresponding year (FY2013), it said in a statement.
It said the increase in revenue was driven mainly by its shipbuilding business segment which saw an increase in the total number of vessels delivered from 20 in FY2013 to 24 in FY2014.
In line with the growth in revenue, the Group registered a 47 per cent rise in net profit in FY2014 to reach RM302.2 million.
Nam Cheong, listed on the Main Board of the Singapore Exchange Securities Trading Ltd (SGX-ST), is also Malaysia’s largest Offshore Support Vessel (OSV)builder.
Commenting on the results yesterday, Datuk Tiong Su Kouk, executive chairman of Nam Cheong said: “Repeat customers form a strong pillar of Nam Cheong’s business.
“The FY2014 results reflect the robust demand for our vessels by customers and continued confidence in Nam Cheong as a reputable OSV builder.
“Most recently in December 2014 and despite an uncertain macro environment, we secured two vessel orders collectively worth US$45 million from our Netherlands-based and West Africa-based repeat customers.
“Being a specialist in the resilient shallow water segment, we are also less affected by the current low oil prices compared to our deepwater counterparts.” Nam Cheong’s group chief executive officer Leong Seng Keat said even with the company’s strong financial performance in FY2014, the focus remained on prudently deploying capital and further building operational capabilities.
“As of December 31, 2014, our order book stood at a healthy RM1.7 billion, comprising a mix of OSVs that are due for deliveries up to 2016.
“Nam Cheong’s access to the Medium Term Notes market continues to be excellent, ensuring our working capital requirements are met in light of the higher order levels in FY2014,” he added.
For the three months ended Dec 31, 2014 (4Q 2014), the Group recorded a 29 per cent rise in revenue to RM523.9 million from RM406.1 million in the previous corresponding period (4Q 2013).
This was due to the progressive recognition of revenue derived from the Platform Supply Vessels (PSV) sold in 4Q 2014 which contributed 40 per cent of the quarter’s total shipbuilding revenue.
Nam Cheong’s balance sheet in FY2014 remained robust with shareholders’ equity growing by RM280.7 million to reach RM1.2 billion.
Net gearing ratio as at Dec 31, 2014 stood at 0.42 time, an improvement from 0.52 time as of Dec 31, 2013.
The board has recommended a first and final dividend of 1.5 Singapore cents amounting to total dividends payable of S$31.4 million.
