Nam Cheong Sells 3 Newbuild Vessels for $70.5M

Malaysia-based Nam Cheong Limited  (Nam Cheong, or together with its subsidiaries, the Group), a global offshore marine player listed on the Main Board of the Singapore Exchange Securities Trading Limited (SGX) and Malaysia’s largest Offshore Support Vessel (OSV) builder, announced July 23 that it has sold 3 vessels worth a total of $70.5 million.

One of the 2 Platform Supply Vessels (PSV) was sold to an existing customer, a leading oilfield services company based in Asia. In mid-May this year, this same customer bought 4 PSVs from Nam Cheong. The second PSV was sold to a subsidiary of a new customer in Cyprus, EDT Offshore, a well-established offshore marine services company which owns and operates a diverse range of high specification OSVs.

The Accommodation Work Barge (AWB) was sold to a subsidiary of Perdana Petroleum Berhad (Perdana), an established, major offshore marine services provider for the oil and gas industry in Malaysia and the Southeast Asian region. Earlier in April this year, 2 AWBs with similar specifications were sold to the same subsidiary of Perdana.

Leong Seng Keat, Nam Cheong’s CEO said: “In just a short span of time, we have secured 3 contract wins - 2 from repeat customers and another from a new customer in Cyprus. Our robust sales are indicative of strong industry momentum not only in the region but globally as well.

“These orders from existing and new customers are a demonstration of their confidence in us to deliver quality vessels. We will continue to support demand from our customers given our versatility and flexibility in providing a variety of vessels. We are also glad to be securing a new customer in Cyprus and expanding our customer base.

“With these contract wins, Nam Cheong’s order book to date stands at $472 million (MYR1.5 billion). Year to date, we have sold a total of 16 vessels compared to 7 vessels sold during the same period last year. Given the robust industry momentum, we believe that we are on track to surpass our record high of 21 vessel sales achieved last year.”

The 3 vessels are being constructed as part of the Group’s build-to-stock series in 2 of its subcontracted yards in China. They are scheduled for delivery between the first and fourth quarters of 2014, and are expected to contribute positively to the Group’s earnings for the financial years ending 2013 and 2014.


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