(Sept 30): This past week has seen some notable share disposals. On Sept 23, Leong Seng Keat, CEO of Malaysia-based oil and gas shipbuilder Nam Cheong, sold 13.9 million shares at 0.6 cent apiece on the open market. This reduced his direct interest to 0.041% or 2.9 million shares in the company. His deemed interest in the company — held by his wife, Tiong Eng Ming, and Dominion Energy, of which he is a director — remained intact at 1.32%, or 94.1 million shares.
Leong’s share disposal comes after Nam Cheong posted a weak set of results in 1HFY2019 ended June 30. Revenue tumbled 23% y-o-y to RM104.6 million ($34.2 million), owing to an absence of shipbuilding revenue, though this was offset by a y-o-y revenue growth of 183% at its vessel chartering segment. Earnings plunged 99% y-o-y to RM3.3 million, even though the company recorded a higher gross profit. The company says it would have recorded a net loss of RM30.9 million, if it excluded the waiver of debts and foreign exchange gain of RM588.1 million.
Looking ahead, the overall outlook for Nam Cheong appears to be challenging — even though, in the notes accompanying the financial statement, the company cited Malaysia’s state-owned petroleum company Petroliam Nasional as saying that a positive outlook was expected for offshore vessels. This is because the company may record an absence of shipbuilding revenue again, owing to potential deferment and cancellation plans. It says it will continue to monitor and review the shipbuilding schedule for the remaining vessels that have yet to be delivered.
