Nam Cheong Ltd posted a net profit of RM164.36 million for the six months ended Jun 30, 2026, up 83 per cent year-on-year, lifted by a one-off RM101.0 million gain on vessel disposals and higher vessel-chartering utilisation.
Basic earnings per share doubled to 40.51 sen from 20.09 sen a year earlier. The board did not declare an interim dividend as the group remains focused on strengthening its balance sheet after completing a debt-restructuring exercise in March 2024.
Group revenue rose 25 per cent YoY to RM348.29 million. Shipbuilding contributed RM89.71 million after delivering one vessel and recognising progress on another, compared with no deliveries in the prior-year period. Vessel chartering remained the mainstay, generating RM258.58 million, though this was 7 per cent lower YoY as accommodation-vessel utilisation softened; overall fleet utilisation improved to 65 per cent from 58 per cent.
Pre-tax profit climbed 61 per cent to RM183.86 million. The chartering division earned RM175.92 million before tax (-29 per cent YoY) while shipbuilding swung to a RM25.38 million profit. The “Others” segment recorded a RM17.43 million loss, primarily reflecting holding-level expenses.
Operating cash outflow of RM5.08 million contrasted with a RM31.26 million inflow a year earlier, as higher working-capital needs for vessel construction drove a RM72.37 million rise in inventories. Net investing inflows of RM134.56 million were underpinned by RM137.91 million of proceeds from vessel sales, while financing outflows narrowed to RM97.75 million after the repayment of restructured loans. Net gearing continued to improve, with total borrowings reduced to RM340.26 million at end-June from RM425.45 million at end-December 2025.
Management reported no interim dividend, citing a priority to consolidate the group’s financial position following the 2024 debt-restructuring scheme, which extended loan maturities to 2031 and cut borrowing costs.
Looking ahead, Nam Cheong noted buoyant offshore activity in Malaysia amid Petronas’s plans to sustain national production, as well as fresh project sanctions by international oil companies such as PTTEP and Shell. On a global scale, offshore-support-vessel utilisation is forecast to reach 77 per cent in 2026 and exceed 79 per cent in 2027, while more than half of the current fleet is already over 15 years old—factors the group believes will underpin charter demand in the coming quarters.
The company aims to capitalise on the tightening OSV market, continue selective vessel sales and deliveries, and further deleverage its balance sheet under the restructuring framework.