Nam Cheong Limited, a leading offshore support vessel provider in South East Asia, reported a significant 82.9% increase in net profit for the first half of 2026, reaching RM164.4m. This surge was primarily driven by a 25.2% rise in revenue to RM348.3m, largely attributed to the shipbuilding segment, which contributed RM89.7 million.
The shipbuilding segment marked its first revenue stream in six years, benefiting from the sale and delivery of one vessel and ongoing construction projects. This revival in shipbuilding contributed to a gross profit of RM22.7m and a gain from vessel sales of RM101m, indicating a positive shift in the shipbuilding cycle.
Despite these gains, the overall gross profit declined by 3.0% to RM137.1m, with the gross margin narrowing by 11.4 percentage points to 39.4%. This was due to a revenue mix shift and lower margins in the chartering segment, which saw a 7.1% decline in revenue to RM258.6m, affected by lower utilisation of accommodation vessels.
Nam Cheong’s financial health improved, with the net gearing ratio dropping from 0.27x at the end of 2025 to 0.10x by mid-2026. This was aided by a RM101.0m gain from vessel disposals, part of the company’s strategy to repay debt and reprofile its fleet.
Looking forward, CEO Leong Seng Keat expressed optimism, noting the company’s plans to add five vessels to its fleet by year-end and the strong demand for shipbuilding services. The company remains focused on execution and customer engagement to deliver long-term value.
