Nam Cheong sinks into the red with $12.6m losses in 1H16

Shipbuilding and chartering businesses were uninspiring.

On back of weak shipbuilding and chartering businesses, Nam Cheong Limited’s net losses rose to S$12.6 million (RM37.5 million) in the first half of 2016 against a profit of S$16.7 million (RM49.8 million) in the corresponding period last year.

Nam Cheong’s quarterly result revealed that group revenue plunged 39% YoY to S$39.4 million (RM117.4 million) as progressive revenue recognition from vessels sold by the shipbuilding segment lagged 36% to RM114.0 million.

On top of this, utilisation rate by the vessel chartering segment contributed weight to the decline with a 75% drop in revenue to S$1.1 million (RM3.4 million).

The disappointing performance dragged 2Q16’s net profit 74.3% to S$0.9 million (RM2.7 million) compared to S$3.5 million (RM10.5 million) in the same quarter a year ago.