Nam Cheong, which builds offshore support vessels, sank into the red with 4Q net loss of RM21.5 million ($7.2 million), compared to earnings of RM41 million the year before.
Revenue plunged 54% to RM241.8 million, impacted by weaker vessel sales and shipbuilding activities. Only two vessels were completed and delivered in 4Q compared to six in 4QFY2014. Vessel chartering revenue also took a hit, falling 52% to RM17.3 million due to lower utilisation rate.
“Given the challenging outlook of the industry, we have battened down the hatches and will continue to focus on calibrating our cost structure to ride out this storm. In addition, at the request of our customers and at our own initiative, we have deferred the schedule of vessel deliveries that are under construction,” says CEO Leong Seng Keat.
Nam Cheong ended 1% lower at 9.7 cents on Wednesday.
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Revenue plunged 54% to RM241.8 million, impacted by weaker vessel sales and shipbuilding activities. Only two vessels were completed and delivered in 4Q compared to six in 4QFY2014. Vessel chartering revenue also took a hit, falling 52% to RM17.3 million due to lower utilisation rate.
“Given the challenging outlook of the industry, we have battened down the hatches and will continue to focus on calibrating our cost structure to ride out this storm. In addition, at the request of our customers and at our own initiative, we have deferred the schedule of vessel deliveries that are under construction,” says CEO Leong Seng Keat.
Nam Cheong ended 1% lower at 9.7 cents on Wednesday.
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