Nam Cheong Secures Prestigious Award for Highest Three-Year Profit Growth at The Edge Centurion Club 2025

Key Highlights for Investors

• Major Award Win: Nam Cheong Limited, a leading offshore support vessel (OSV) provider based in Sarawak, Malaysia, has been awarded the “Highest Growth in Profit After Tax Over Three Years” at The Edge Singapore Centurion Club Awards 2025.
• Objective Recognition: The award is solely based on audited financial performance and is targeted at SGX-listed companies with a market capitalization between S\$100 million and S\$999 million as of 31 March 2025.
• Sector Leadership: This accolade underscores Nam Cheong’s position as the largest OSV fleet operator in Malaysia and highlights its sustainable financial recovery and robust sector performance.
• Fleet Strength: The Group operates the largest, youngest, and most technologically advanced OSV fleet in Malaysia, comprising 38 vessels supporting oil and gas, renewable energy, and telecommunications sectors.
• Charter Strategy: Currently, around 60% of Nam Cheong’s fleet is under long-term charter contracts, with half of these on contracts of three years or longer. The company aims to increase this proportion to 70%, enhancing earnings visibility while keeping 30% of the fleet available for the spot market to capture upside opportunities.
• Industry Tailwinds: The global OSV market is experiencing robust demand due to an ageing fleet (average age 15–16 years), which is driving replacement needs and benefiting companies like Nam Cheong.
• Shipbuilding Expertise: With over 60 years of shipbuilding experience and more than 150 vessels delivered since 2007, Nam Cheong is well-positioned to capitalize on renewed newbuild momentum.
• Commitment to ESG: The company emphasizes social responsibility, including education and environmental sustainability, as part of its growth vision.
• Leadership Commentary: Executive Chairman Tan Sri Datuk Tiong Su Kouk attributes the achievement to strategic business repositioning, technological excellence, and disciplined execution, reaffirming the company’s readiness to seize emerging opportunities in OSV chartering and shipbuilding.

Details for Shareholders and Market Impact

Potential Price-Sensitive Information:

• Nam Cheong’s award for highest profit growth is a significant endorsement of its financial turnaround and sector leadership. This recognition could attract increased investor attention and confidence, potentially driving the share price higher.
• The Group’s clear strategy to expand long-term charter contracts to 70% of its fleet is likely to improve cash flow stability and reduce exposure to market volatility, which is a key consideration for long-term investors.
• With the global OSV fleet ageing and replacement demand rising, Nam Cheong is strategically positioned to benefit from a new growth cycle both in fleet chartering and new vessel construction. This could lead to further earnings growth and improved shareholder value.
• Technological upgrades and a focus on environmentally friendly, high-spec OSVs strengthen the Group’s competitive edge in winning new contracts, both regionally and internationally.

Company Background and Growth Track Record

Founded in Miri, Sarawak in 1968 as a fishing vessel builder, Nam Cheong has transformed into Malaysia’s leading OSV group. Listed on the SGX Mainboard since 2011, the company has delivered more than 150 vessels globally and operates one of the largest shipbuilding yards for OSVs in Malaysia.

Its chartering fleet of 38 vessels is one of the largest and youngest in Malaysia, supporting a diverse range of industries and geographies. The company’s focus on advanced, environmentally friendly vessel construction has helped secure contracts with clients across Southeast Asia, the Middle East, West Africa, Latin America, Europe, and the USA.

Strategic Outlook

Nam Cheong’s dual focus on growing its long-term charter book while maintaining flexibility through spot market exposure is designed to optimize returns in a strengthening offshore oil and gas market. In addition, with the average OSV age globally at 15–16 years, the anticipated replacement cycle supports further upside for both its chartering and shipbuilding businesses.

The Group’s commitment to disciplined execution, technological innovation, and responsible growth positions it strongly to capture new opportunities and drive continued financial outperformance.

Contact Information

For further inquiries, investors and analysts may contact:
Kamal Samuel / Vicki Zhou / Lim En Tong
Email: [email protected] / [email protected] / [email protected]
Tel: (65) 6438 2990

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The author and publisher assume no liability for any loss that may result from reliance on the information contained herein.

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