Nam Cheong (1MZ) Q3 2025 earnings summary

Executive summary

• 9M2025 revenue fell 12% YoY to RM449.0m, mainly from lower vessel utilisation; net profit was RM133.7m versus RM683.9m, with 9M2024 boosted by debt-waiver income and other gains.

• 3Q2025 revenue declined 15% YoY to RM170.8m but rose 6% QoQ as long-term charters commenced; profit for the period was RM43.8m and profit attributable to owners was RM45.8m.

Financial highlights

• 9M2025 gross profit decreased 12% YoY to RM228.8m; gross margin was 51%.

• 9M2025 operating profit was RM181.2m versus RM729.3m; profit before tax was RM170.9m versus RM741.4m, reflecting prior-period exceptional income.

• 3Q2025 operating profit fell 26% YoY to RM61.8m; profit before tax declined 24% to RM56.7m.

• Adjusted core profit, excluding other income, other operating expenses and JV/associate results, fell 12% to RM133.7m in 9M2025 and 27% to RM53.3m in 3Q2025; core PATMI was RM55.3m in 3Q, up 26% QoQ.

• 9M2025 operating cash flow was RM28.2m versus RM108.1m; cash and cash equivalents were RM47.1m at 30 September 2025.

Outlook and guidance

• OSV charter rates are expected to remain well supported in 2026 amid ageing fleet supply, subdued newbuild activity and Malaysian cabotage limits; long-term prospects remain cautiously optimistic.

• Long-term contracts covered 60% of the fleet in 3Q2025, with a 70% target; newbuild opportunities will be assessed selectively, supported by recurring chartering cash flow.

• Debt obligations over the next 12 months are expected to be met through cash, receivables collection and operating cash flow, barring unforeseen circumstances.