Nam Cheong Limited, a leading offshore support vessel provider based in Sarawak, Malaysia, reported a 6% quarter-on-quarter increase in revenue for the third quarter of 2025, reaching RM170.8m. This growth was primarily driven by the commencement of long-term charters, which also saw vessel utilisation rise to 70% from 68% in the previous quarter.
The company’s gross profit increased by 3% qoq to RM87.5m, although the gross margin slightly decreased by 1.4 percentage points due to additional vessel operating costs related to scheduled maintenance. Despite this, the gross margin remained above 50%.
Nam Cheong’s CEO, Leong Seng Keat, highlighted the positive impact of long-term charters on vessel utilisation rates and revenue growth. “Building on this momentum, we remain focused on securing long-term contracts to achieve about 70% fleet coverage for stability,” he stated.
The company is also exploring fleet expansion opportunities to strengthen its market presence. With the global offshore support vessel fleet ageing and approaching replacement cycles, Nam Cheong is well-positioned to capture emerging opportunities, leveraging its shipbuilding capabilities.
Looking ahead, the company remains cautiously optimistic about its long-term growth prospects, supported by a solid and recurring cash flow from its chartering business. The local market faces structural supply constraints, and with Malaysia’s cabotage policies limiting foreign vessel participation, charter rates are expected to remain strong into 2026.
