Between Mar 10 and 11, Nam Cheong CEO Leong Seng Keat acquired 160,000 shares at an average price of S$0.54 apiece. This increased his total interest from 3.53 per cent to 3.57 per cent. Based in Sarawak, Nam Cheong was founded in 1968 as a builder of fishing vessels. Today, it owns and operates one of Malaysia&rsquo s largest shipbuilding yards for offshore service vessels (OSVs), while also being Malaysia&rsquo s largest OSV builder.

 

Leong joined the group in 2005 as an executive director, bringing extensive sales and management experience. He successfully marketed the group&rsquo s vessels internationally and was appointed CEO in 2013. Since then, he has led the group&rsquo s global market expansion and innovation in fuel-efficient vessels. In 2016, he established the ship management arm, Skom. Under his leadership, the group has grown to operate a charter fleet of around 30 vessels.

 

On Feb 28, Nam Cheong reported an attributable net profit of RM790.1 million for FY2024, up from RM157.3 million in FY2023. Revenue in FY2024 rose 45.1 per cent to RM689.4 million, driven by fleet expansion, improved daily charter rates, and higher utilisation of larger vessels. Gross margin also increased to 53.1 per cent, from 35.5 per cent in FY2023, mainly due to better daily charter rates.

 

Leong highlighted that 2024 was a pivotal year with record-breaking revenue and profitability for Nam Cheong&rsquo s vessel chartering business. He noted the group secured multi-year charter contracts for one-third of its fleet with regional and international oil majors, significantly enhancing its revenue resilience.

 

Looking at 2025, Leong noted that the group will remain agile, leveraging its fleet to seize growth opportunities in the active oil and gas market and drive long-term sustainable growth.

Nam Cheong has secured multi-year offshore support vessel (OSV) charter contracts worth RM1.22 billion ($368.7 million). The contract includes options for extension from the regional and international oil majors. 

 

The charters are expected to begin in 2025 for a firm charter period of 3 years. 

 

According to the group, the deal is set to reinforce Nam Cheong &rsquo s presence in the OSV market in Southeast Asia and will provide the group with steady revenue visibility.

.

Under the contracts, the group will charter a total of twelve vessels, comprising anchor handling tug supply vessels, platform supply vessels, safety standby vessels and landing craft. The vessels constitute approximately one-third of the group&rsquo s fleet.

 

Leong Seng Keat, CEO of Nam Cheong, says: &ldquo We are thrilled to be awarded with these sizeable long-term contracts by the regional and international oil majors. This achievement underscores our commitment to excellence and strengthens our partnerships with these industry leaders. It also showcases our strong operational track record and further highlights Nam Cheong' s commercial capabilities as a key regional OSV player and position in the growing Sarawak oil and gas industry.&rdquo  

 

The group adds that the long-term charter contracts are expected to contribute positively to Nam Cheong&rsquo s financial performance from the financial year ending Dec 31, 2025. 

Nam Cheong has secured multi-year offshore support vessel (OSV) charter contracts worth RM1.22 billion ($368.7 million). The contract includes options for extension from the regional and international oil majors. 

 

The charters are expected to begin in 2025 for a firm charter period of 3 years. 

 

According to the group, the deal is set to reinforce Nam Cheong &rsquo s presence in the OSV market in Southeast Asia and will provide the group with steady revenue visibility.

.

Under the contracts, the group will charter a total of twelve vessels, comprising anchor handling tug supply vessels, platform supply vessels, safety standby vessels and landing craft. The vessels constitute approximately one-third of the group&rsquo s fleet.

 

Leong Seng Keat, CEO of Nam Cheong, says: &ldquo We are thrilled to be awarded with these sizeable long-term contracts by the regional and international oil majors. This achievement underscores our commitment to excellence and strengthens our partnerships with these industry leaders. It also showcases our strong operational track record and further highlights Nam Cheong' s commercial capabilities as a key regional OSV player and position in the growing Sarawak oil and gas industry.&rdquo  

 

The group adds that the long-term charter contracts are expected to contribute positively to Nam Cheong&rsquo s financial performance from the financial year ending Dec 31, 2025. 

Offshore service vessel (OSV) provider Nam Cheong has reported a net profit of RM50.9 million ($15.3 million) for the 3QFY2024 ended Sept 30, down 19% y-o-y from the same period last year. 

 

For the period, earnings per share stood at 11.74 sen, down from 72.81 sen in 3QFY2024. 

 

This came on the back of higher selling and administrative expenses and operating expenses for the period. 

 

Meanwhile, the group&rsquo s revenue from its vessel chartering division saw a 34% y-o-y increase to RM200.4 million, driven by improved daily charter rates and an increase in fleet size in 2024. 

 

That said, Nam Cheong&rsquo s shipbuilding segment did not record any revenue for both 3QFY2024 and 3QFY2023 as there was no vessel scheduled for delivery during the period.

 

Gross profit for 3QFY2024 was up 148% y-o-y at RM115.4 million, in line with the group&rsquo s revenue growth. Gross margin for the period stood at 58%, up by 26.5 percentage points (ppt) y-o-y. 

 

Leong Seng Keat, CEO of Nam Cheong, says, &ldquo Following the successful debt restructuring in March, our primary focus now is to enhance our performance by capitalising on the favourable offshore and marine market conditions. Our commitment to long-term and sustainable development remains unwavering. Despite the macroeconomic uncertainties, we will remain agile and effectively address any emerging challenges that lie ahead.&rdquo