Latest news with #NamCheongLimited
Borneo Post
27-06-2025
- Business
- Borneo Post
Nam Cheong secures RM204.1 million OSV contracts in Middle East and Japan
Nam Cheong is actively moving into offshore renewables and environmental marine services while continuing to serve its core oil and gas customers. KUCHING (June 27): Sarawak-based offshore support vessel (OSV) provider Nam Cheong Limited has secured RM204.1 million worth of new charter contracts for three vessels with operations starting in 2025 for up to two years and options for further extension. The group in a statement yesterday said the contracts involve one anchor handling tug supply vessel (AHTS) and two fast crew boats. Two of the vessels will be chartered to Marine Operations for Environmental Services (SAIL) in the Middle East to support coastal environmental protection projects. The third will be chartered to a contractor involved in offshore wind farm operations in Japan. SAIL, established in 2022, is a wholly owned subsidiary of the Saudi Investment and Resource Company (SIRC) and the Public Investment Fund of Saudi Arabia. The company focuses on rapid oil spill response and shoreline monitoring using advanced technology and best industry practices. Nam Cheong said the move into green offshore projects reflects the strength and flexibility of its fleet in supporting diverse offshore activities. 'Meanwhile, our expansion into the Middle East and Japanese waters reflects a strategic move to diversify the Group's geographical exposure and reduce concentration risk. 'Collectively, these enhance the resilience of our fleet operations, especially amid the evolving market landscape and ongoing macroeconomic uncertainties,' it said. With these new charters, Nam Cheong now has 24 vessels under long-term contracts, making up 63 per cent of its fleet. The group aims to raise this to 70 per cent, a target it says will boost earnings visibility and operational stability. It further noted that demand for OSVs is rising beyond the traditional oil and gas sector as the global energy mix shifts. In response, the group is actively moving into offshore renewables and environmental marine services while continuing to serve its core oil and gas customers. 'This approach positions the group to capture a broader set of long-term opportunities across multiple sectors and geographies,' it added. Chief executive officer Leong Seng Keat said the latest contract wins will expand the company's reach across different offshore sectors and regions, adding to a portfolio that currently serves only the oil and gas industry. 'While Oil and Gas remains a core market for us, we are seeing growing potential in offshore renewables and marine environmental services. 'Leveraging a modern and advanced fleet, we are building a more balanced charter mix to maximise fleet utilisation while capitalising on the global energy transition trend to drive sustainable returns. 'Our target of having 70 per cent of the fleet on long-term contracts not only provides earnings stability, but also gives us the flexibility to pursue attractive opportunities as they emerge in the evolving markets,' he said. corporate news Nam Cheong Limited offshore support vessel
Yahoo
21-05-2025
- Business
- Yahoo
Nam Cheong's (SGX:1MZ) Anemic Earnings Might Be Worse Than You Think
The subdued market reaction suggests that Nam Cheong Limited's (SGX:1MZ) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Importantly, our data indicates that Nam Cheong's profit received a boost of RM441m in unusual items, over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And that's as you'd expect, given these boosts are described as 'unusual'. Nam Cheong had a rather significant contribution from unusual items relative to its profit to March 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Nam Cheong. As we discussed above, we think the significant positive unusual item makes Nam Cheong's earnings a poor guide to its underlying profitability. For this reason, we think that Nam Cheong's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. In further bad news, its earnings per share decreased in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into Nam Cheong, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 4 warning signs with Nam Cheong, and understanding them should be part of your investment process. Today we've zoomed in on a single data point to better understand the nature of Nam Cheong's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
14-04-2025
- Business
- Yahoo
We Believe Nam Cheong's (SGX:1MZ) Earnings Are A Poor Guide For Its Profitability
Even though Nam Cheong Limited (SGX:1MZ) posted strong earnings recently, the stock hasn't reacted in a large way. We decided to have a deeper look, and we believe that investors might be worried about several concerning factors that we found. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to December 2024, Nam Cheong had an accrual ratio of 1.00. Ergo, its free cash flow is significantly weaker than its profit. Statistically speaking, that's a real negative for future earnings. To wit, it produced free cash flow of RM93m during the period, falling well short of its reported profit of RM785.2m. Notably, Nam Cheong had negative free cash flow last year, so the RM93m it produced this year was a welcome improvement. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. Check out our latest analysis for Nam Cheong Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Nam Cheong. Given the accrual ratio, it's not overly surprising that Nam Cheong's profit was boosted by unusual items worth RM441m in the last twelve months. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. We can see that Nam Cheong's positive unusual items were quite significant relative to its profit in the year to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. Nam Cheong had a weak accrual ratio, but its profit did receive a boost from unusual items. For all the reasons mentioned above, we think that, at a glance, Nam Cheong's statutory profits could be considered to be low quality, because they are likely to give investors an overly positive impression of the company. If you'd like to know more about Nam Cheong as a business, it's important to be aware of any risks it's facing. For instance, we've identified 3 warning signs for Nam Cheong (1 is significant) you should be familiar with. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
14-04-2025
- Business
- Yahoo
We Believe Nam Cheong's (SGX:1MZ) Earnings Are A Poor Guide For Its Profitability
Even though Nam Cheong Limited (SGX:1MZ) posted strong earnings recently, the stock hasn't reacted in a large way. We decided to have a deeper look, and we believe that investors might be worried about several concerning factors that we found. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to December 2024, Nam Cheong had an accrual ratio of 1.00. Ergo, its free cash flow is significantly weaker than its profit. Statistically speaking, that's a real negative for future earnings. To wit, it produced free cash flow of RM93m during the period, falling well short of its reported profit of RM785.2m. Notably, Nam Cheong had negative free cash flow last year, so the RM93m it produced this year was a welcome improvement. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. Check out our latest analysis for Nam Cheong Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Nam Cheong. Given the accrual ratio, it's not overly surprising that Nam Cheong's profit was boosted by unusual items worth RM441m in the last twelve months. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. We can see that Nam Cheong's positive unusual items were quite significant relative to its profit in the year to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. Nam Cheong had a weak accrual ratio, but its profit did receive a boost from unusual items. For all the reasons mentioned above, we think that, at a glance, Nam Cheong's statutory profits could be considered to be low quality, because they are likely to give investors an overly positive impression of the company. If you'd like to know more about Nam Cheong as a business, it's important to be aware of any risks it's facing. For instance, we've identified 3 warning signs for Nam Cheong (1 is significant) you should be familiar with. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
