Nam Cheong sold two work barges worth $59m

Delivery set for 1H14.

Main Board-listed offshore marine builder Nam Cheong Limited (Nam Cheong) announced that it has sold two vessels worth a total of US$59.0 million.

Two Accommodation Work Barges (AWBs) were 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.

Mr Leong Seng Keat, Nam Cheong’s Executive Director said: “Perdana has been a valued, blue-chip customer of Nam Cheong for the past seven years. “As a major offshore marine player in Malaysia, Perdana stands to benefit from positive industry developments that would include the Pan-Malaysian Hookup and Commissioning works, an umbrella package worth a total of RM8 billion to RM10 billion. We are pleased that our established relationship with Perdana is helping to boost our order book and we are thrilled to be riding on strong industry momentum with them.”

Mr Leong added: “The sale of these AWBs came at the heel of a six-vessel sale Nam Cheong had in late March. Our ability to win yet another collective contract in less than a month speaks volumes again of our strong track record and effective business model, which enables us to meet the urgent demands of our customers.”

The two vessels are of American Bureau of Shipping (ABS) class and are being constructed as part of the Group’s build-to-stock series in one of its subcontractedyards in China. They are scheduled for delivery during the first half of 2014.

Nam Cheong’s order book hits RM1.4 billion with this latest win.