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Nam Cheong secures RM54.8m 2-year chartering contracts for 3 offshore vessels

MALAYSIAN offshore vessel builder Nam Cheong Limited has clinched chartering contracts for three offshore support vessels worth RM54.8 million (S$17.9 million), inclusive of options to extend.

The three chartering contracts, which last up to two years, are for one anchor handling tug supply vessel and two platform supply vessels.

The clients are foreign oil majors, and the vessels will be used to service the oilfields in Malaysian waters, said Nam Cheong in a bourse filing on Tuesday.

The contracts are expected to increase the group's revenue, and contribute to its financial performance from financial year ending Dec 31, 2019 through to the end of fiscal 2021.

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Including the latest contracts, Nam Cheong's total order book stands at RM290 million.

Leong Seng Keat, chief executive officer of Nam Cheong, said: "In line with surging vessels chartering revenues, we are pleased to be making greater headway, extending our footprint to capture greater market share in the recovering market.

"Moving forward, we will continue to expand in vessel chartering, evolve our shipbuilding business, and diversify into engineering, procurement, construction, installation and commissioning projects to ride on the upturn."

The mainboard-listed firm's shares were unchanged at S$0.007 as at the midday trading break.