Nam Cheong Limited reported a 17.4% year-on-year rise in profit attributable to owners to RM189.6 million for the six months ended Dec 31, 2025, lifted by higher gains from vessel sales and stronger offshore support-vessel (OSV) utilisation, even as revenue eased 8.4% to RM341.5 million after a record comparative period in 2024.

Earnings per share were not disclosed. The board did not declare any dividend in the announcement.

Revenue from chartering and vessel sales came in at RM341.5 million versus RM278.2 million in the preceding half, driven by the start-up of additional long-term charters. Gross profit improved 13.2% half-on-half to RM160.0 million, although gross margin narrowed to 46.9% from 50.8% owing to higher scheduled maintenance costs completed in the fourth quarter. Other income surged to RM115.4 million, more than eight times the year-ago level, as the company booked larger gains from vessel disposals, the derecognition of payables and foreign-exchange movements.

Selling and administrative expenses almost doubled on a half-year basis to RM53.0 million, reflecting higher staff and marketing costs, while other operating expenses grew to RM9.7 million because of a litigation settlement with a third-party supplier. Finance costs were broadly stable at RM9.5 million. These movements resulted in operating profit of RM212.8 million, up 78.2% from 1H2025.

Looking ahead, Nam Cheong expects vessel utilisation to improve in FY2026, supported by recently secured long-term charters and plans to monetise selected vessels to recycle capital for fleet renewal. Management also pointed to favourable industry fundamentals: Petroliam Nasional Bhd (Petronas) intends to keep Malaysia’s oil and gas output near two million barrels of oil equivalent a day through 2028, while an ageing regional OSV fleet could tighten supply and buoy charter rates.

Chief executive officer Leong Seng Keat said the group’s focus in FY2025 was on readying its fleet for multi-year contracts that started contributing from the second half. He noted that continued charter deployments, coupled with potential asset sales from the in-house shipyard, should underpin earnings and capital efficiency in the coming year.