Nam Cheong bags RM317.1 million in regional vessel charter deals

[SINGAPORE] Sarawak-based offshore marine firm Nam Cheong has secured vessel charter contracts worth up to RM317.1 million (S$94.5 million) from regional oil majors.

The multi-year agreements have a firm charter period of up to two years, with options for further extension, the company said in a bourse filing on Wednesday (Apr 16).

Seven anchor handling tug supply vessels will be deployed in Malaysian and Thai waters to support offshore operations, including towing, anchoring, logistics and emergency response.

With these, Nam Cheong has 21 vessels, or 56.8 per cent of its total fleet, under long-term charter, which puts it on track to reach its 70 per cent goal.

The company’s chief executive officer Leong Seng Keat said: “With Sarawak’s growing role as a regional oil and gas hub and the increasing offshore activities in Malaysia, we are well-positioned to support our clients’ evolving needs while enhancing the group’s earnings visibility and long-term value.”

Nam Cheong’s shares closed 2.9 per cent or S$0.015 higher at S$0.54 on Wednesday, before the announcement.