Nam Cheong Sells 2 Accommodation Work Barges to Perdana Petroleum for $84M

Nam Cheong Limited (Nam Cheong, or together with its subsidiaries, the Group), a leading global offshore marine player listed on the Main Board of the Singapore Exchange Securities Trading Limited (the SGX-ST) and Malaysia’s largest Offshore Support Vessel (OSV) builder, announced Monday that it has sold 2 Accommodation Work Barges (AWB) worth approximately $84 million (approximately SGD 105 million), with the option to purchase another 2 vessels, to a repeat customer, Bursa-listed Perdana Petroleum Berhad (Perdana).

In July last year, Nam Cheong sold 1 AWB of a smaller size, to Perdana, an established, major offshore marine services provider for the oil and gas industry in Malaysia and the Southeast Asian region.

These 2 AWBs will be the first-of-its-kind in Malaysia when delivered and the largest accommodation vessels to be built by Nam Cheong.

Leong Seng Keat, Nam Cheong’s CEO said: “Repeat orders from existing customers attest to the quality of our vessels and reflect the confidence and satisfaction of our customers.

“In addition to breaking new ground as the first of their kind in Malaysia and the largest to be built by Nam Cheong, these AWBs boast of the highest value per unit to be constructed by us.

“With this contract, we are pleased to note that our cumulative order book has further increased to a high of $466 million (MYR 1.5 billion). In light of the rising momentum of E&P spending in the global oil & gas industry and robust demand for our vessels, we remain optimistic of our prospects in the year ahead.”

Both of these vessels are being constructed under Nam Cheong’s build-to-order model in one of the Group’s subcontracted yards in China. They are scheduled for delivery in 2016 and are expected to contribute positively to the Group’s earnings for the financial years ending Dec. 31 to Dec. 31, 2016.

Nam Cheong revealed that the 2 AWBs sold measures 403 feet (123 meters) in length, with accommodation for 500 men. The American Bureau of Shipping (ABS) class AWBs each have an 8 point mooring system and a 300 ton deck crane.


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