Malaysian offshore support vessel builder Nam Cheong posted record profits for 2013 as revenues climbed.
The company posted a net profit of
206.2 million ringgit ($62.9 million), up 51% on the 136.6 million
ringgit profit booked in 2012.
The jump in profits came as revenues
climbed 43% year-on-year from just under 876.6 million ringgit to a
record high of nearly 1.3 billion ringgit.
Helping boost turnover was revenue
gains from both the company's shipbuilding and vessel chartering
segments of 42% and 73% respectively, with the shipbuilding segment
contributing to 95% of overall revenue.
Nam Cheong attributed the rise in
shipbuilding revenue to an increased number of vessels being
delivered in 2013, with 20 deliveries throughout the year compared to
just 13 in 2012.
The improved performance from the
vessel chartering segment was mainly attributed to the expansion of
the company's chartering fleet in 2013.
“Our order book today remains very
healthy at 1.5 billion ringgit and this bears further testament to
the strength of our business model which continues to yield results
for us,” Nam Cheong chief executive Leong Seng Keat said.
“Having achieved record order wins in
2013, we expect the sales momentum to continue this year as we tap
into a resurgent market.”
Nam Cheong gave a positive outlook for
the market, stating exploration and production spending was expected
to hit a record high of $732 billion this year.
It said that the global OSV fleet was
aging with over 30% of vessels being of traditional build and in
operation for over 25 years.
As a result it said operators and
charterers would be looking to replace older OSVs with more modern
vessels that are better equipped to cope with present day operational
It also pointed to Malaysia as a key
market in the medium term, with an upswing in E&P activity
leading OSV owners to look to expand their fleets on the back of
higher rates and improved utilisation.