Nam Cheong Limited, a leading Malaysian Offshore Support Vessel (OSV) provider, has announced a significant rise in its profit attributable to owners of the parent (PATMI) for the second half of 2025, reaching RM189.6m. This marks a 17.4% year-on-year increase and a 138.2% rise half-year-on-half-year, attributed to stronger vessel utilisation and gains from vessel sales.
Revenue for the second half of 2025 climbed to RM341.5m, a 22.7% increase from the first half of the year, as more long-term charter contracts commenced. However, the full-year revenue saw a decline of 9.5% year-on-year to RM619.7m, reflecting a normalised vessel utilisation rate compared to the peak in 2024.
Gross profit for the period rose by 13.2% half-year-on-half-year to RM160m, although the gross margin narrowed to 46.9% due to scheduled vessel maintenance completed in the fourth quarter. Other income surged to RM115.4m, driven by higher gains from vessel sales and foreign exchange gains.
Looking ahead, Nam Cheong anticipates higher vessel utilisation in 2026, supported by long-term charters and potential vessel monetisation. CEO Leong Seng Keat expressed optimism, stating, “We expect a higher vessel utilisation compared to 2025 and see opportunities to unlock further value through the monetisation of some of our vessels.”
The Malaysian OSV market is expected to remain stable, with Petronas maintaining domestic output and increasing exploration activities, which could sustain demand for OSVs. Nam Cheong, with its young and technologically advanced fleet, is well-positioned to capitalise on these opportunities and deliver long-term value to shareholders.
