Singapore-listed Nam Cheong Limited has reported a stable core profit of RM80.4 million for the first half of 2025, despite facing an 11% year-on-year decline in revenue, which totalled RM278.2 million. The decrease in revenue was primarily due to lower vessel utilisation as the fleet prepared for the start of secured long-term charters.
The company saw its gross margin increase by 4 percentage points to 51%, attributed to reduced vessel maintenance costs. Nam Cheong anticipates an improvement in vessel utilisation in the second half of 2025 as long-term charters begin. The company is committed to a fleet deployment strategy that aims for 70% long-term charter coverage to ensure resilience and stability, whilst maintaining 30% exposure to spot charters to capitalise on potential market opportunities.
The financial results also highlighted a significant drop in other income, which fell by 99% compared to the same period last year. Despite this, the company managed to keep its operating profit at RM119.4 million, although this represents an 82% decrease from the previous year. The profit before tax was RM114.2 million, down 83% from the previous year.
Looking ahead, Nam Cheong remains focused on its strategic goals amidst macroeconomic challenges, aiming to enhance its operational efficiency and market position through its charter strategy. The company’s approach is designed to balance stability with the flexibility to seize market opportunities as they arise.
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