Nam Cheong unit bags RM80m 3-year chartering contracts for 3 offshore vessels

OFFSHORE vessel builder Nam Cheong's indirect subsidiary SKOSV SDN BHD has clinched long-term (more than a year) chartering contracts for three offshore support vessels (OSV) worth about RM80 million (S$26.3 million), with an option for extension valued at RM50 million.

The three-year chartering contracts are for one Platform Supply Vessel and two Anchor Handling Tug Supply vessels.

The clients are Malaysian oil majors and the vessels will be used to service works on floating LNG (liquefied natural gas) facilities and other production operations in Malaysian waters until 2022, with an optional extension until 2024.

The contracts are expected to contribute positively to the group's financial performance from the financial year ending Dec 31, 2019 through to the end of fiscal 2022.

With the additional contracts, the group's chartering orderbook stands at RM295 million (including option for extensions worth RM140 million).

"With the OSV industry steadily gaining pace, our focus for growth now shifts to our 32-strong fleet as we bolster our chartering operations to capture the gradually recovering market," said Leong Seng Keat, chief executive officer of Nam Cheong. 

Nam Cheong shares closed up 12.5 per cent or S$0.001 at S$0.009 on Tuesday.