Nam Cheong Shows Record Breaking Net Profit for 2013
Nam Cheong Limited, Malaysia’s largest Offshore Support Vessel (OSV) builder, today released its results for the three months ended December 31, 2013 (4Q 2013).
The group achieved a record revenue of RM406.1 million, which was 7% higher than the RM379.2 million received in the corresponding period last year (4Q 2012). In line with its topline performance, the group achieved another record-breaking net profit of RM70.2 million for 4Q 2013.
The group’s stronger topline performance for 4Q 2013 was attributable to its two business segments of shipbuilding and vessel chartering. Revenue for the shipbuilding segment grew 4% to RM385.1 million for 4Q 2013 from RM370.3 million for 4Q 2012 on the back of an increase in number of vessels delivered over the quarter.
Nam Cheong’s gross profit grew in tandem with revenue gains as it marked a 8% increase from RM74.0 million for 4Q 2012 to RM79.7 million for 4Q 2013. Over the period, gross profit margin was 20%, in line with the group’s ideal range of between 19% and 20%. The shipbuilding segment recorded a gross profit margin gain of two percentage points from 19% in 4Q 2012 to 21% in 4Q 2013.
For the full year ended December 31, 2013 (FY2013), revenue grew by 43% year-on- year to approximately RM1.3 billion from RM876.6 million in the previous corresponding period (FY2012).
With consistent topline gains made in four successive quarters, the group’s shipbuilding and vessel chartering segments recorded revenue gains of 42% and 73% respectively. The shipbuilding segment contributed to 95% of the group’s FY2013 revenue while the vessel chartering segment accounted for the remaining 5%.
As a result, FY2013 net profit registered a strong double-digit growth of 51% to RM206.2 million from RM136.6 million in FY2012. This marks another year of record earnings for the group.
The group continued to maintain a healthy balance sheet in FY2013 with total assets growing by RM873.4 million. Total liabilities increased by a comparably lower RM527.0 million for FY2013. Net gearing ratio as at December 31, 2013 was 0.52 times, marking an increase from 0.38 times as at December 31, 2012.
Mr. Leong Seng Keat, Nam Cheong’s Group Chief Executive Officer concluded, “With the current uptick in the OSV sector, we look to tap on the opportunities arising from various regions of the world. As a leading global offshore marine player, we have the ability and capacity to deliver to the increased needs of our customers amid an increase in global E&P activities. We look to grow from strength to strength as we work with our customers to ensure that our vessels continue to meet their requirements.”
(1 Malaysian Ringgit equals 0.31 US Dollar)
Press Release, February 26, 2014