Hot stock: Nam Cheong jumps 19.2% after RM1.2 billion in contract wins

SHARES of mainboard-listed Nam Cheong surged on Friday (Nov 29) morning, after the group announced that it had bagged offshore support vessel charter contracts worth RM1.2 billion (S$360 million).

As at 9.20 am, the counter rose 19.2 per cent or S$0.07 to S$0.435, with about 1.6 million shares changing hands.

The share price later eased to S$0.425, still up 16.4 per cent or S$0.06, as at 11.24 am, with 2.6 million securities having been transacted. No married deals were recorded in early trade, based on ShareInvestor data.

After the market closed on Thursday, the group announced that it has won multi-year offshore support vessel contracts from regional and international oil majors.

The contracts are expected to contribute positively to the group’s financial performance from the financial year ending Dec 31, 2025.

The charters begin in 2025, and will last for three years.

Under the deal, Nam Cheong will charter a total of 12 vessels, comprising anchor handling tug supply vessels, platform supply vessels, safety standby vessel and landing craft.

These vessels will make up about a third of the group’s fleet, said Nam Cheong, an offshore support vessel provider based in Sarawak, Malaysia.

Its shares closed on Friday at S$0.435, up S$0.07 or 19.2 per cent.