Malaysia’s largest OSV player Nam Cheong resumed trading on the Singapore Exchange (SGX) today having swung back into the black at its interims.
Nam Cheong, a builder and provider of OSVs, managed to post a net profit after tax of RM559.6m ($136m) for the first half of year, compared to a loss of RM2.1bn in the previous corresponding period. The company said the turnaround was mainly due to the restructuring of the group’s debt with trade creditors resulting in the waiver of debts amounting to RM557.5m.
Nam Cheong’s proposed renounceable non-underwritten rights issue of up to 2,096,465,885 new ordinary shares at an issue price of S$0.014 for each rights share has received in-principle approval from SGX.
“We hope shareholders will continue to lend support to the group by subscribing for our recently proposed renounceable non-underwritten rights issue, which will further strengthen our financial position and sustain our businesses for the long-term. As a demonstration of my commitment as a major shareholder of Nam Cheong, I have made an irrevocable undertaking with the deposit of a committed sum of RM50m for the purposes of fulfilling obligations in relation to my irrevocable undertaking,” said Nam Cheong’s executive chairman Tan Sri Datuk Tiong.
Nam Cheong sought restructuring in April last year following a host of other troubled Southeast Asian offshore entities.
Nam Cheong shares closed the day at 2.5 cents, up 25% on their previous close.