Nam Cheong wins $43M in vessel contracts

Mainboard-listed offshore shipbuilder sold a platform supply vessel and two anchor vessels.

In a release, Nam Cheong said the sale of the 3,000 dead weight tonne (“dwt”) platform supply vessel (PSV) "represents penetration of a new market for Nam Cheong, as the vessel was sold to a new customer – an emerging offshore marine services and construction company based in West Africa."

Nam Cheong also sold one of the 5,150 brake horsepower (“bhp”) anchor handling towing supply (AHTS) vessels to a Norwegian-based customer that will own, operate and manage the vessels under a long-term charter contract with Petrobras, Brazil's national oil corporation that ranks as the world’s fifth largest energy company. In late March, the Norwegian-based customer had awarded contracts to Nam Cheong for two other AHTS vessels.

The other AHTS vessel which also has 5,150 bhp was sold to an established customer based in the Middle East, a marine operator with an expanding fleet of OSVs, said Nam Cheong.

“Securing the contract from our new West African customer has effectively expanded our geographical market. This new customer services the oil and gas industries in one of the oil-rich nations in the West African region," said Mr Leong Seng Keat, Nam Cheong’s Executive Director. 

“At the same time, we are also getting repeat orders from established customers in markets where vessels built by us have been deployed, such as in South America and the Middle East. Indeed, we have been seeing rising demand for AHTS vessels and PSVs in the global OSV industry," he said.

"Our ability to ascertain demand in these areas has helped us build vessels with the right specifications ahead of time to meet demand in Malaysia and the Southeast Asia region, as well as in overseas markets. Our built-to-stock model, coupled with our built-to-order system, once again validates the effectiveness of our business model and strategies," he added.