Nam Cheong sells four platform supply vessels for $120m

Sales contribute positively to FY2013-14.

Nam Cheong Limited announced that it has sold four Platform Supply Vessels (PSVs) worth a total of approximately US$120 million (approximately S$150 million). The customer is new to Nam Cheong and is an emerging offshore marine services company based in Latin America.

Mr. Leong Seng Keat, Nam Cheong’s Chief Executive Officer said, “We are delighted to have secured one of our largest contracts for the year to bring our cumulative order book to RM1.7 billion (approximately S$669 million). These four vessels bring our total sales for the year to 20, which is close to surpassing our record of 21 vessels sold last year.”

“The global oil and gas industry remains robust amid growing demand for energy. With global exploration and production spending expected to reach a record US$678 billion by 2013, we expect OSV demand to continue growing. This brings us on track to overtaking last year’s sales record.”

The four vessels are being constructed as part of the Group’s build-to-stock series in its subcontracted yard in China. They are scheduled for delivery in 2014 and are expected to contribute positively to the Group’s earnings for the financial years ending 31 December 2013 and 31 December 2014.