Malaysia Based Nam Cheong Sells Three AHTS Vessels

The Board of Directors of Nam Cheong Limited announced that Nam Cheong Dockyard Sdn. Bhd. and Nam Cheong International Ltd., both are wholly-owned subsidiary of Nam Cheong, have secured sale contracts with a total value worth USD36.8 million for two units of 5,150bhp and one unit of 5,220bhp Anchor Handling Towing Supply (“AHTS”) vessels to new customers from Singapore, including a Norwegian-based Singapore company.

The vessels are sold to new Singaporean customers, including one based in Norway, who are emerging offshore support service providers for oil majors in the Asia-Pacific and South America region.

Two of these vessels will be deployed to South America and one to the Asia Pacific region. The AHTS vessels are being constructed as part of the Group’s build-to-stock series. Scheduled for delivery in the second and third quarters of 2012, each vessel is about 60 meters long and has a minimum bollard pull of 60 tonnes.

One of the AHTS vessels is being built in Nam Cheong’s Miri yard in Sarawak, Malaysia and the other two are being constructed in two of the Group’s subcontracted yards in China.

Revenue from the Contract will be recognised over the relevant contractual period in accordance with the Group’s revenue recognition policy. The Contract is expected to contribute positively to the earnings of the Group for the financial year ending 2012. With the Contract, Nam Cheong’s order book stands approximately RM628 million (approximately SGD257.6 million based on the exchange rate of SGD1 = RM2.4381 as quoted on Bloomberg L.P. 28 March 2012) comprising 12 units of vessels, which are scheduled for delivery stretching till end of 2012.

As far as the Directors of Nam Cheong are aware, none of the Directors or controlling shareholders of Nam Cheong has any interest, direct or indirect, in the above transactions other than through their shareholdings in Nam Cheong.

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World Maritime News Staff, March 29, 2012; Image: Nam Cheong