Nam Cheong secures four contracts worth US$284 million

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KUALA LUMPUR: Nam Cheong Ltd, a leading global offshore marine player, has sold four vessels worth about US$90 million (RM284 million).

The company is listed on the main board of the Singapore Exchange Securities Trading Ltd and is Malaysia’s largest offshore support vessel (OSV) builder.

The four sales contracts have boosted Nam Cheong’s order book to 29 vessels worth about RM2.0 billion, said chief executive officer Leong Seng Keat in a statement yesterday.

“This is a clear demonstration of the market’s confidence in our capabilities as an OSV builder.

“With buoyant prospects in the OSV sector, driven by rising rig count and strong utilisation rates, we see a preference for younger and more sophisticated vessels to support modern rigs and leading to increased requirements for larger Anchor Handling Towing Supply (AHTS)” he added.

The four vessels are all of the American Bureau of Shipping (ABS) class and being constructed as part of Nam Cheong’s built-to-stock series in the Group’s sub-contracted yards in China.

They are scheduled for delivery in 2014 and expected to contribute positively to the Group’s earnings for the financial year ending Dec 31,2014. — Bernama