Nam Cheong sells two offshore support vessels for US$36.7 million
Net proceeds will fund the group’s shipbuilding activities, including fleet expansion
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[SINGAPORE] Shipbuilder Nam Cheong on Tuesday (Apr 21) announced that it is selling two offshore support vessels for US$36.7 million.
The buyers are a vessel operator in Indonesia and a government-linked vessel operator in Egypt.
The transactions comprised the sale of a new-build multi-purpose support vessel – Nam Cheong’s first new-build sale in over a decade – and a 120-tonne anchor handling tug supply vessel, which will turn 16 years old in 2026.
Both vessels were delivered in the second quarter, Nam Cheong said.
It added that net proceeds from the deals will be redeployed to support the group’s shipbuilding activities, either for external sales or to support its fleet expansion to grow its recurring income base.
Leong Seng Keat, chief executive officer of Nam Cheong, noted that the group “continues to see increasing demand for new-builds” amid an ageing global offshore support vessel fleet.
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“Earlier this year, the group successfully secured its first shipbuilding contract for four offshore support vessels in more than a decade,” he added. “We view this new-build sale as a further encouraging signal of emerging shipbuilding demand.”
Nam Cheong expects offshore activities and demand for offshore support vessels to “remain robust”.
The group noted that offshore engineering, procurement, construction and installation expenditure is expected to “increase meaningfully” in 2026; spending has been forecast to rise 32 per cent to US$71 billion.
“At the same time, ageing fleet and limited new-build appetite underscore a tightening supply outlook,” it added.
Shares of Nam Cheong ended Tuesday flat at S$1.54, before the announcement.
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