Nam Cheong Q1 profit falls 45% on lower revenue from shipbuilding, chartering

SINGAPORE - Mainboard-listed Malaysian shipbuilder Nam Cheong posted a 45 per cent tumble in net profit to RM39.3 million (S$9.65 million) for the first quarter ended March 31, 2015 on lower revenue.

Revenue for the quarter fell 20 per cent to RM326.3 million from RM407.3 million a year ago. Revenue from shipbuilding was down 19 per cent to RM310.7 million, as the number of vessels delivered in the quarter fell to six from seven a year ago.

The vessel chartering business also recorded lower revenue of RM15.6 million due mainly to lower vessel utilisation rate.

During the quarter, due to the absence of a net fair value gain on derivatives of RM5.8 million recorded a year ago, other income reached RM2.9 million compared to RM7.2 million in Q1 2014.

The group's order book stood at RM1.6 billion as at March 31, 2015, comprising a mix of offshore support vessels due for deliveries up till 2016.

Earnings per share fell to 1.87 sen, from 3.38 sen a year ago, while net asset value per share was 63 sen from 58.2 sen.

No dividend was declared.