Nam Cheong Receives Orders for 4 Offshore Support Vessels for $90M
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 4 vessels worth approximately $90 million (approximately SGD 112.1 million).
Leong Seng Keat, Nam Cheong’s CEO said: “We are pleased to see that the strong momentum has continued, with these wins closely following the sale of 6 vessels in June and July. This is a clear demonstration of the market’s confidence in our capabilities as an OSV builder. With buoyant prospects in the OSV sector driven by rising rig count and strong utilization rates, we see a preference for younger and more sophisticated vessels to support modern rigs,
leading to increased requirements for larger AHTS. With the securing of these 4 sales contracts, this has boosted Nam Cheong’s order book to a total of 29 vessels worth approximately $634.4 million (MYR 2.0 billion).”
One Platform Support Vessel (PSV) of 5,000 dead weight ton (dwt) equipped with Dynamic Positioning System 2 (DP2) was sold to a subsidiary of a repeat customer, Bumi Armada Berhad, a Malaysia-based international offshore oilfield services provider. The customer had previously purchased 4 Multi-Purpose Platform Support Vessels in February 2013 which represented one of Nam Cheong’s largest collective wins.
The sale of a 200-men Accommodation Work Vessel (AWV), also equipped with a DP2 System, was made to a joint venture company of the Group, co-owned with Main Board SGX-listed, Marco Polo Marine Ltd (Marco Polo) which is an integrated marine logistic group with an established track record in the chartering of OSVs in the region.
In addition, the Group secured a sales order for a 6,000 brake horse power (bhp) Anchor Handling Towing Supply (AHTS) vessel from a new customer based in Vietnam, an emerging player with a strong reputation in the ship agency services and service broking business.
Separately, a repeat customer based in Malaysia, Time Marine Services Sdn Bhd, with focus on marine vessel services, drilling services and special services also purchased a 5,000 bhp AHTS.
Leong concluded: “Going forward, we strive to continue delivering on our good track record and to capitalize on opportunities such as strategic partnerships. Our recent joint venture with Marco Polo is one such example where we foresee a mutually beneficial relationship leveraging on their deep expertise in the vessel chartering space while relying on our key competency in building high quality vessels. In doing so, we aim to further deepen our roots in the OSV industry and strengthen our ties with a key partner like Marco Polo.”
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