Nam Cheong Receives $92M Orders to Build 3 PSVs, 1 Accommodation Work Barge

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) and Malaysia’s largest Offshore Support Vessel (OSV) builder, announced Tuesday that it has sold another 4 vessels worth approximately $92 million (approximately SGD 115 million). With these 4 contract wins, Nam Cheong’s order book now boasts 25 vessels worth approximately $530.1 million or MYR 1.7 billion (approximately SGD 660.1 million).

Three Platform Supply Vessels (PSVs) of 3,000 dead weight ton (dwt) each, equipped with Dynamic Positioning System 2 (DP2) was 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 CEO said: “These 4 orders, on the back of the contract for 2 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 4 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 Dec. 31 to Dec. 31, 2015.

Nam Cheong revealed that three 3,000 dwt-PSVs sold each measures 246 feet (75 meters) in length. The American Bureau of Shipping (ABS) class PSVs are equipped with dynamic positioning (DP) system 2. Separately, the 200-men ABS-class Accommodation Work Boat sold is 256 feet (78 meters) long and equipped with DP system 2.


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