Nam Cheong Limited, Malaysia’s leading Offshore Support Vessel (OSV) provider, has reported a significant 160% year-on-year increase in profit attributable to owners of the parent (PATMI) for the first quarter of 2026, reaching RM78.9m. This growth is attributed to higher vessel utilisation and the sale of a vessel, despite a smaller fleet size.
The company achieved a 1% rise in revenue to RM117.9m, driven by improved vessel utilisation, which increased to 58% from 48% in the same period last year. This improvement was largely due to more long-term charter contracts commencing and contributing to earnings. The disposal of a vessel during the quarter resulted in a gain of RM59.3m, significantly boosting other income to RM60.5m from RM4.3m in Q1 2025.
Nam Cheong’s net gearing ratio improved, falling to 0.17x from 0.27x in the previous quarter, with expectations of further reduction following accelerated debt repayment in the second quarter of 2026. The company plans to enhance its revenue base with the addition of five new vessels to its fleet throughout the year.
Chief Executive Officer Leong Seng Keat expressed optimism, stating, “With five new vessels scheduled to join our fleet for the remainder of 2026, we expect our revenue base to be further enhanced.” The company remains focused on balancing fleet growth with capital discipline amidst robust offshore demand.
