Nam Cheong sells 4 vessels for $92M

Nam Cheong Limited, Malaysia’s largest Offshore Support Vessel (“OSV”) builder, today announced that it has sold another four vessels worth approximately US$92 million.

With these four contract wins, Nam Cheong’s order book now boasts 25 vessels worth approximately RM1.7 billion (approximately S$660.1 million1

Three Platform Supply Vessels (“PSVs”) of 3,000 dead weight tonne (“dwt”) each, equipped with Dynamic Positioning System 2 (“DP2”) were sold to a repeat customer which is a leading oilfield services company based in Asia.

The sale of a 200-men Accommodation Work Boat (“Work Boat”), also equipped with DP2, was made to a subsidiary of a new customer, Maridive And Oil Services S.A.E based in North Africa, an established offshore marine and oil support services company in the Middle East and North Africa region.

Leong Seng Keat, Nam Cheong’s Chief Executive Officer said: “These four orders, on the back of the contract for two Accommodation Work Barges last week, speak volumes of the growing confidence in Nam Cheong’s reputation and expertise within the region and beyond as well as the strength of the upbeat sentiments from the continued momentum of rising E&P activities around the world.
“We are excited about the increasing interest from customers in the oil-rich Africa and Asia regions. We remain confident of reaching out to other key markets to extend our geographical presence and to build Nam Cheong into a trusted global brand.”

The four vessels are all of American Bureau of Shipping (ABS) class and are being constructed as part of Nam Cheong’s built-to-stock series in the Group’s subcontracted yards in China. They are scheduled for delivery between 2014 and 2015 and are expected to contribute positively to the Group’s earnings for the financial years ending 31 December 2014 to 31 December 2015.