Nam Cheong Clinches $66M Contracts to Supply 3 AHTS, 1 MWV

Nam Cheong Limited, (Nam Cheong, or together with its subsidiaries, the Group), an offshore marine player listed on the Main Board of the Singapore Exchange Securities Trading Limited (the SGX) and Malaysia’s largest Offshore Support Vessel (OSV) builder, reported Monday that the Group has set a new record high in vessel sales with its latest contract wins of four vessels.

The Group sold three Anchor Handling Towing Supply Vessels (AHTS) to its jointly controlled entity, PT Bahtera Niaga Indonesia (BNI) and one Maintenance/Work Vessel (MWV) to a subsidiary of a repeat customer, Icon Offshore Berhad (Icon) for approximately $66 million (SGD 83.8 million).

Leong Seng Keat, Nam Cheong’s CEO said, “We are pleased that with these latest wins, our vessel sales is now at a record high of 24, surpassing last year’s high of 21 vessels.

“We are also delighted to have made good inroads with both BNI and our existing customer, Icon. Our Indonesian partner in BNI is an established and well-connected player in the Indonesian oil and gas support industry and we are encouraged by this second partnership, a clear indication that our business relationship with them has indeed progressed very well since 2011.

“We are also pleased to note that Icon, a major OSV player in Malaysia, has continued to purchase from us since 2011, a testimony of their confidence in our quality vessels.

“Our cumulative order book now stands at a healthy level of $0.45 billion (MYR1.5 billion). With global E&P (exploration and production) spending expected to see another record-setting year in 2014, rising about 6 percent to hit $723 billion, led by robust activities in the Middle East, Latin America and Russia, we are optimistic of an exciting 2014 ahead.”

All four vessels are being constructed as part of the Group’s build-to-stock series in its subcontracted yards in China. They are scheduled for delivery in 2014 and are expected to contribute positively to the Group’s earnings for the financial years ending Dec. 31, 2013 and Dec. 31, 2014.

Nam Cheong reveals that the three 5,150 brake horse power AHTS sold measure 193 foot (59 meter) in length, with bollard pull of 65 tons. The American Bureau of Shipping (ABS)-class AHTS are equipped with dynamic positioning (DP) system 1. The company also indicated that the ABS-class MWV, which is 256 foot or 78 meter-long, is equipped with DP system 2 and has an accommodation capacity of 200 men.


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