Nam Cheong

[CityFarmer]

http://businesstimes.com.sg/companies-ma...orth-us45m

Nam Cheong secures deals for two vessels worth US$45m
By Angela Tan angelat@sph.com.sg
29 Dec 8:13 AM
NAM Cheong Limited said on Monday that it has secured sale contracts for two vessels worth about US$45 million...

So far, the shallow-water O&M biz seems as normal, with oil price around $60.

The impact seems minimum, except the obvious "fear" of Mr. Market. That applies to deep-water operators as well...

I will end this post with the following statements from the company CEO

"Despite the tougher external environment, particularly for our deepwater counterparts, the shallow water segment remains highly resilient even to recently announced capital expenditure cuts by national oil companies," Nam Cheong CEO Leong Seng Keat said in the statement.

"There is a reasonable margin of safety before oil prices fall to unprofitable levels of below US$25 to US$50 per barrel to adversely affect our shallow-water segment customers," he said.

http://www.theedgemarkets.com/sg/article...95-million

[CityFarmer]

Nam Cheong FY2014 result is announced. The brief below. The market outlook from the company below. The most convincing clue is total dividend increased from 1 cents to 1.5 cents.

“Nam Cheong’s strategy remains focused on the shallow water segment and we expect to benefit from an increase in cumulative planned offshore infrastructure developments in the segment over the next few years. This is largely due to more oil fields coming on-stream than those being decommissioned. Further, we also anticipate greater demand for our vessels, particularly from shallow water geographical regions as a result of the expected global delivery of more than 100 modern jack-up rigs between 2015 and 2017”

(not vested, and monitor as peer of Penguin)

----
NAM CHEONG ACHIEVES REVENUE GROWTH OF 53% TO REACH RM1.9 BILLION IN FY2014
- Net profit up 47%, reaching RM302.2 million
- Results reflect customers’ continued confidence in Nam Cheong’s capabilities;
- Robust order book of RM1.7 billion as at December 31, 2014;
- Continues to focus on resilient shallow water segment and prospects over the longer horizon;
- Total dividend of 1.5 Singapore cents proposed for FY2014.

http://infopub.sgx.com/FileOpen/NCL-4Q20...eID=334648

[CityFarmer]

A good start of 2015 for Nam Cheong...

Nam Cheong clinches US$58m orders for two vessels
11 Mar 2015 08:16
NAM Cheong has won orders for two vessels totalling US$58 million, taking its current order book to RM1.7 billion (S$635 million), the shipbuilder said early on Wednesday.

Marco Polo Marine placed an order for a 200-man accommodation work vessel, while repeat customer Topaz Energy and Marine will buy a 12,000-brake horsepower anchor handling towing supply vessel.

The contracts are expected to contribute to earnings for 2015 and 2016.

Nam Cheong shares closed at 30 Singapore cents on Tuesday.
Source: Business Times Breaking News

[CityFarmer]

I am surprised too. Let's see the next few quarter results...

(not vested)

Nam Cheong's decision to build PSVs surprising amid tough market: UOB

SINGAPORE (May 25): Nam Cheong ( Financial Dashboard)'s decision to build seven platform supply vessels (PSVs) next year is surprising as these are "a tough sell" following the sharp decline in oil prices in the last few quarters, according to UOB Kay Hian.

The shipbuilder has reduced the number of vessels to be built in 2015 to 24 from 35, and has targeted to build 30 next year.

"Of note is the large number of PSVs and large-sized anchor handling, towing and supply vessels (AHTS) in the 2016 programme, most without secured buyers," UOB Kay Hian analysts Foo Zhiwei and Nancy Wei pointed out in a note today.

Twelve of the 30 vessels have been sold. The remaining 18 are estimated to be worth US$383 million ($511.6 million), they said.

"Management shared during the 1Q15 analyst briefing that it is experiencing surprisingly high enquiries for PSVs, even more than that for AHTS," they said.

The enquiries are from West Africa, India and Mexico.
...
http://www.theedgemarkets.com/sg/article...market-uob

[Behappyalways]

Nam Cheong struggling to find buyers for 26 built-to-stock vessels
http://sbr.com.sg/energy-offshore/news/n...ck-vessels

[CityFarmer]

Nam Cheong isn't spared by the storm too...

(not vested)

Nam Cheong’s 2Q earnings down 83% to $3.8 mil

SINGAPORE (Aug 13): Nam Cheong ( Financial Dashboard), the Malaysian builder of offshore support vessels, posted a 83% fall in 2Q earnings to RM10.7 million ($3.8 million) from RM63.3 million a year ago.

Revenue for the three months to June fell 49% to RM192.7 million from RM378.8 million.

Revenue from the shipbuilding segment decreased by 50% to RM179.2 million mainly due to the lower progressive recognition of revenue from the sale of PSVs which contributed RM94.4 million .

The vessel chartering segment also recorded a decrease of 42% to RM13.5 million mainly due to lower utilisation rate in 2Q.

Gross profit decreased by 54% to RM30.6 million in tandem with lower revenue.

The group says it has an order book of RM1.5 billion as at June 30, comprising a mix of OSVs due for deliveries up till 2016.

Nam Cheong closed 8.6% lower at 19.2 cents on Wednesday.
http://www.theedgemarkets.com/sg/article...-83-38-mil

[snapsnap]

nam cheong revenue continues to fall jia you.

Nov 17, 2015 - Nam Cheong kept at ‘hold’ with lower target price of 15 cents by DBS
http://www.theedgemarkets.com/sg/article...-cents-dbs

[d.o.g.]

I met them about 2 years ago and asked them to explain how they would not turn out to be Jaya chapter 2. I got the standard yada-yada about how "customer interest is very strong" and "Petronas has announced its capex plans" etc etc. I didn't hear a peep about balance sheet strength or counterparty risk. So I said "thank you very much" and decided to watch from afar.

"Those who cannot remember the past are condemned to repeat it." Reason in Common Sense, George Santayana.

As usual, YMMV.

[greengiraffe]

I met them about 2 years ago and asked them to explain how they would not turn out to be Jaya chapter 2. I got the standard yada-yada about how "customer interest is very strong" and "Petronas has announced its capex plans" etc etc. I didn't hear a peep about balance sheet strength or counterparty risk. So I said "thank you very much" and decided to watch from afar.

"Those who cannot remember the past are condemned to repeat it." Reason in Common Sense, George Santayana.

As usual, YMMV.

Offshore sector was a big one in regional exchanges due to largely the fortunes of the majors such as KepCorp and Sembmarine. They are no different from the mining services providers Down Under.

They have little proprietory knowledge so to speak and is largely dependent on the big cycle.

O&G has been on the up since early Y2K. Whatever supply imbalances and renewal would have been history. Renewals is a bull mkt efficiency stories. In a long winter like this since there is no COE on equipments, the lack of demand on the part of clients due to global costs cut-backs will likely result in massive over-supply.

The newer equipments whilst efficient will likely have depressed usage rates and hence rental income. The older ones that require more maintenance are likely to be laid up while waiting for eventual scrapping of being reused at substantially lower fixed costs recovery rates shld cycle start to turn.

So far, global commodities are still trying to find some form of bottoming and hence the best cycle recovery plays will be the fittest upstream players...

That is my old school logical analysis. Hence local O&G plays can be forgotten till we see more blood - bankruptcies and M&A for bailout purposes.

GG

[snapsnap]

updates on nam nam cheong stocks with momentum ..yeah
http://sdb.theedgemarkets.com/2015/SMR/S...yygfh0.pdf