Nam Cheong secures record-high $130m worth of Bumi Armada vessel contracts

One of its largest contracts in history.

In a release, Nam Cheong Limited (Nam Cheong), an SGX Main Board-listed global offshore marine player and Malaysia’s largest Offshore Support Vessel (OSV) builder, reported that it has entered into US$130 million worth of contracts with Armada Offshore MPSV Limited, a wholly-owned subsidiary of Bumi Armada Berhad (Bumi Armada) for the sale of four Multi-Purpose Platform Support Vessels (MPSVs).

Bumi Armada, a Malaysia-based international offshore oilfield services company, had awarded a Letter of Intent for the contracts, with an option to build four additional units, to Nam Cheong on June 20, 2012.

Mr Leong Seng Keat, Nam Cheong’s Executive Director, said: “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, thereby marking a significant milestone for us. Our philosophy of treating our customers as partners, catering to their needs and delivering quality vessels to them on time has always been the key to establishing long-term relationships with our customers. We are heartened by repeat orders from one of our long-time, blue-chip customers of more than 20 years.

The MPSVs will be built as part of the Group’s built-to-order series in one of Nam Cheong’s subcontracted yards in China.

All four ABS Class MPSVs will be 88.8 metres long, with 5,000 metric tonnes deadweight and Dynamic Positioning System 2 capability. The vessels are built to support offshore deepwater activities with multi-purpose functions of transporting cargo and to standby for rescue work.

The sale confirms Nam Cheong’s order book as at December 31, 2012, of RM1.3 billion, and is expected to contribute positively to the earnings of the Group for the financial years ending 2013 to 2015.