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Nam Cheong bags 6 OSV chartering contracts worth RM116.4m; names new CFO

MALAYSIAN offshore vessel builder Nam Cheong Limited has won chartering contracts for six offshore support vessels (OSV) worth RM116.4 million (S$38.5 million), inclusive of options to extend.

The six chartering contracts are for two accommodation work barges, three anchor handling tug supply vessels and one platform supply vessel, the mainboard-listed firm said on Tuesday.

The clients are foreign oil majors, and the vessels will mainly be operated in East Malaysia waters to support the drilling activities of the foreign oil majors. 

Together with a RM54.8 million order clinched in December 2019, the contracts are expected to contribute positively to Nam Cheong's financial performance for its financial year ending Dec 31, 2020 and fiscal 2021.

Including the latest contracts, its total order book stands at RM318.2 million, after including revenues from options for extension. 

Nam Cheong’s revenue from vessel chartering more than doubled year on year to RM285.4 million for FY2019 from RM134.5 million for FY2018.

This was mainly attributable to its expanded fleet size of 36 vessels in FY2019, from 28 vessels in FY2018, the group said.

Leong Seng Keat, chief executive officer of Nam Cheong said: "The sizeable new order wins are a good start for the year, adding more stability and visibility to our revenue and order book going forward."

Separately, the group has appointed Chong Chung Fen, 42, as its chief financial officer (CFO) with effect from March 1.

He has been with the group since July 2008, when he was first appointed as an accountant. Before taking on the CFO role, he was financial controller of Nam Cheong Dockyard from January 2017 to February 2020.

As CFO, Mr Chong will be responsible for corporate finance, financial planning, financial risk management, treasury, statutory reporting, taxation and investor relations of the group.

Shares of Nam Cheong closed up 0.1 Singapore cent or 16.7 per cent to 0.7 cent on Monday.