SINGAPORE (May 12): Nam Cheong swung into a net loss of RM40.1 million ($13.6 million) in the first quarter ended March 31, 2016, from earnings of RM39.3 million a year ago.

The builder of offshore support vessels says the loss was mainly due to adverse foreign exchange movements of RM36.9 million.

Revenue, meanwhile, recorded negative RM93.1 million compared to RM326.3 million previously.

Its top line was impacted by Perdana Petroleum's cancellation of an accommodation work barge job, which was in an advanced stage of construction, as well as lower vessel delivery.

Nam Cheong says it recouped a 20% deposit of US$8.4 million, which has been forfeited by Perdana.

Nam Cheong's order book stood at about RM1.1 billion as at March 31, 2016, providing it with earnings visibility till 2018.

Given that the outlook of the offshore & marine industry remains challenging, Nam Cheong says it will slow down its cash outflows to conserve cash reserves.

Shares of Nam Cheong ended 1.3% higher at eight cents on Wednesday.