Malaysian OSV owner inks charter agreements for six vessels

Under the contracts, Nam Cheong will supply two accommodation work barges, three anchor handling tug supply vessels and one platform supply vessel, all of which will mainly operate in east Malaysian waters to support the drilling activities of international oil majors. Combined with a previous RM54.8M (US$13M) charter signed in December, these latest contracts are expected to contribute positively to Nam Cheong Group’s financial performance for the financial year ending 31 December 2020 and 31 December 2021.

With the new order wins, Nam Cheong’s orderbook stands at RM318.2M (US$75.7M), after including revenues from options for extension.

As Offshore Support Journal reported, Nam Cheong’s vessel chartering revenue has been surging. Nam Cheong’s revenue from vessel chartering for FY2019 surged by 112% year-on-year from RM134.5M (US$32M) in FY2018 to RM285.4M (US$67.9M) in FY2019, mainly attributable to the expanded fleet size from 28 vessels in FY2018 to 36 in FY2019.

Commenting on the new contracts, Nam Cheong chief executive Leong Seng Keat said, “The sizeable new order wins are a good start for the year, adding more stability and visibility to our revenue and orderbook going forward.”

Mr Leong added, “While we remain vigilant on the market outlook, we will continue to capitalise on our capabilities and reputation in the vessel chartering business and diversify into engineering, procurement, construction, installation and commissioning projects to capture more opportunities during the industry upturn.”