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Monday, December 29, 2014

Nam Cheong sells 2 vessels worth US$45m

KUALA LUMPUR: Malaysia’s largest offshore support vessel (OSV) builder Nam Cheong Ltd sold two vessels worth US$45mil (RM157.33mil).

The global offshore marine player said on Monday it sold an anchor handling towing supply vessel (AHTS) was sold to a Netherlands-based repeat customer, Vroon B.V.

It is also sold a platform supply vessel (PSV) to a repeat customer, E.A. Temile Development Company of Nigeria Ltd based in West Africa.

Nam Cheong is listed on the Main Board of the Singapore Exchange Securities Trading Ltd.

Its CEO Leong Seng Keat said despite the recent volatility in global oil prices which has affected investor sentiments across the industry, the securing of these orders from its repeat customers “evidently reveals the continued interest in oil and gas activities, our strong reputation in the market for quality and reliable vessels as well as our customers’ confidence in Nam Cheong’s capabilities”.

He said Nam Cheong has evolved from a regional player into an established global leader in the offshore and marine sector. 

“We have consistently received good responses from customers around the world including Europe and West Africa. This has helped broadened our customer base which lowers our geographical concentration risks, placing us in good stead to weather the fluctuations in oil prices. 

“With the securing of the two orders, our order book remains at a healthy level of RM1.7bil, comprising a total of 26 vessels,” Leong said.
Nam Cheong last sold an AHTS to Vroon B.V. in September 2014. A PSV which has similar specifications to the new PSV order, was also sold to Temile in March 2014, marking the third such PSV unit sold to the customer

Leong said despite the tougher external environment, particularly for its deepwater counterparts, the shallow water segment remains highly resilient even to recently announced capital expenditure cuts by national oil companies. 

“There is a reasonable margin of safety before oil prices fall to unprofitable levels of below US$25 to US$50 per barrel to adversely affect our shallow water segment customers. 

“One of Nam Cheong’s unique value propositions is in being a partner to our customers by striving to construct cost efficient vessels that benefit customers by reducing their operating costs,” he added.

On the two vessels, Nam Cheong said they are of American Bureau of Shipping (ABS) class and are being constructed as part of Nam Cheong’s built-to-stock series in the group’s subcontracted yards in China. These vessels are scheduled for delivery in 2015.$45m/?style=biz

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