Nam Cheong sells vessel for US$20.5 million to Vietnam firm

[SINGAPORE] Malaysian offshore support vessel builder Nam Cheong will sell a 4,000 deadweight tonnage platform supply vessel for US$20.5 million to a Vietnam-based offshore and marine group.

The vessel is scheduled for delivery in December 2025 and the sale is expected to contribute positively to the group’s earnings for the financial year ending 2025, the Singapore-listed company said in a bourse filing on Wednesday (Dec 24).

Net proceeds from the sale will be redeployed primarily to support the group’s shipbuilding activities, either for external sales or to support fleet expansion “to grow the recurring income base”, Nam Cheong said. This will depend on “prevailing opportunities”.

The Sarawak-based offshore support vessel provider said the divestment is part of its fleet reprofiling initiatives, which aim to divest ageing vessels at opportune timing and pricing, while supporting efficient capital recycling for its in-house shipbuilding operations.

“Our strong OSV (offshore support vessel) shipbuilding heritage and established global clientele base allow us to identify and capitalise on market opportunities for vessel monetisation,” said chief executive Leong Seng Keat. This will enable the group to capture earnings upsides through the sale of existing aged vessels, he added.

Shares of Nam Cheong closed S$0.03 or 3.6 per cent higher at S$0.875 on Wednesday, after the announcement.