Nam Cheong's net profit tumbled 45% to $14.5m in Q1

Due to a slowdown in new orders.

Offshore and marine firm Nam Cheong reported that its net profit declined 45% year-on-year to $14.5m (RM 39.3m) in the first quarter of the year.

Nam Cheong's results were impacted by the oil price rout, which led to a slowdown in new orders.

Its top line fell 20% to $120.7m (RM326.3m), dragged by a 19% decline in shipbuilding revenue.

Revenue from its vessel chartering segment also declined 35% on back of lower utilisation rates.

“In the last quarter, the volatility in oil prices has affected players across the industry, including Nam Cheong. We similarly experienced a slowdown in new orders and believe that once greater clarity in global oil prices emerges, the flow of contract wins will improve," said Nam Cheong executive chairman Datuk Tiong Su Kouk.