Bumi Armada Buys Four MPSVs from Nam Cheong

Singapore-listed Nam Cheong revealed late Thursday that it has entered into $130 million worth of contracts with Armada Offshore MPSV, the latter a wholly owned subsidiary of Bumi Armada, for the sale of four multi-purpose platform support vessels.

Bumi Armada awarded a letter of intent for the contracts, with an option to build four additional units, to Nam Cheong in June last year.

"We are delighted to have clinched these sale contracts with Bumi Armada. They represent one of Nam Cheong's largest collective wins in our corporate history," Nam Cheong's Executive Director Leong Seng Keet said in a statement.

"Looking ahead, Nam Cheong expects to deliver 19 vessels this year and 25 vessels next year, up from 13 last year. Of the 19 vessels in its shipbuilding program this year, it has already secured firm orders for 13," OCBC Investment Research said in an opinion statement issued Wednesday.

"Outlook for the Malaysian offshore industry remains robust, underpinned by Petronas' planned capital expenditure of $97 million in the 2011/15 period," OCBC Investment Research added.