Nam Cheong Secures Game-Changing RM1.22 Billion OSV Charter Contracts
Nam Cheong Limited, one of Southeast Asia’s leading offshore support vessel providers, has announced a landmark achievement that is set to bolster its financial performance and market standing. The Sarawak-originated firm has secured multi-year charter contracts valued at an impressive RM1.22 billion, reinforcing its stronghold in the offshore support vessel (OSV) sector.
The contracts entail the chartering of twelve vessels, including Anchor Handling Tug Supply vessels, Platform Supply Vessels, Safety Standby Vessels, and Landing Craft. These vessels represent approximately one-third of Nam Cheong’s fleet, showcasing the company’s robust capacity and strategic asset allocation. The charters are scheduled to begin in 2025, with a firm period of three years and options for extension.
Strategically positioned in Sarawak, a region that holds over 60% of Malaysia’s oil and gas reserves and accounts for nearly 90% of its LNG exports, Nam Cheong stands to benefit significantly from the area’s growing demand in the oil and gas industry. This is especially pertinent as Sarawak and Sabah emerge as focal points for the industry, following a decline in oil and gas production in Peninsular Malaysia over the past decade.
Nam Cheong’s Chief Executive Officer, Mr. Leong Seng Keat, expressed excitement over the substantial contracts, emphasizing the company’s commitment to excellence and strong partnerships with industry leaders. He highlighted the contracts as a testament to Nam Cheong’s commercial capabilities and its pivotal role in the regional OSV market.
Financially, these contracts are projected to positively impact Nam Cheong’s performance from the financial year ending 31 December 2025 onwards. This significant boost in revenue visibility is likely to attract investor interest and potentially affect share values, marking a pivotal moment for shareholders.
Nam Cheong, listed on the SGX-ST since May 27, 2011, continues to expand its chartering operations while maintaining a focus on building sophisticated, environmentally friendly OSVs equipped with the latest technology. The company has delivered over 140 vessels since 2007, serving diverse markets including Southeast Asia, the Middle East, and the United States.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Readers are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.
