Nam Cheong's 1HFY2024 net profit surges due to debt waiver

Offshore service vessel (OSV) provider Nam Cheong announced a y-o-y surge in net profit to RM635.8 million in 1HFY2024 for the six months to June 30. compared to RM31.7 million for 1HFY2023, primarily attributable to the waiver of debts. 
Revenue rose by 12% y-o-y to RM312 million, and gross profit increased by 87% y-o-y to RM146.0 million, mainly driven by improved daily charter rates and higher utilisation of larger vessels. 
In Malaysia, the national oil company Petronas is ramping up its upstream spending, with a focus on growing E&P activities to enhance domestic oil and gas output. Recently, Petronas has taken further steps by signing multiple agreements with various oil and gas companies for the development of 12 offshore fields. The rise in offshore operations, coupled with the tight supply of OSVs is expected to support the improvement in daily charter rates in 2025. 
Despite ongoing macroeconomic headwinds, the outlook in the O&G market continues to favour the Group. Leveraging our proven track record in the domestic OSV  chartering sector, the Group is working on capitalising on the expanding offshore O&G market and positioning ourselves for long-term growth.