Nam Cheong secures vessel contracts worth $110m

For one AHTS and four PSVs.

In a disclosure to the Singapore Exchange, the Board of Directors of Nam Cheong Limited (Nam Cheong) announced that Nam Cheong International Ltd., a wholly-owned subsidiary of Nam Cheong, has secured sale contracts (Contracts) with a total value worth USD110 million for one unit of Anchor Handling Towing Supply (AHTS) vessel and four units of Platform Supply Vessels (PSVs).

One 12,000 brake horsepower (bhp) AHTS vessel was sold to a new customer, an emerging offshore marine services company based in Indonesia that owns and operates a diverse range of vessels. It is expected to be deployed in the Southeast Asian region.

Four PSVs were sold to an existing customer, a leading oilfield services company based in Asia. These five vessels are all of American Bureau of Shipping (ABS) class and are being constructed as part of the Group’s build-to-stock series in two of its subcontracted yards in China. They are scheduled for delivery between the second quarter of 2013 and the first quarter of 2014.

Revenue from the Contracts will be recognised over the relevant contractual period in accordance with the Group’s revenue recognition policy. The Contracts are expected to contribute positively to the earnings of the Group for the financial years ending 2013 and 2014.

With the Contracts, Nam Cheong’s order book stands at approximately RM1.7 billion to date. None of the Directors or controlling shareholders of Nam Cheong has any interest, direct or indirect, in the above transactions other than through their shareholdings in Nam Cheong.