Nam Cheong sells first newbuild vessel in more than a decade

The company said the transactions, valued at US$36.7M, include the sale of a newbuild multipurpose support vessel – the group’s first newbuild sale in more than a decade – and an anchor-handling tug supply (AHTS), vessel turning 16 years old in 2026.

The company said the AHTS vessel was due to be disposed of following the completion of a charter contract in Q1 2026. Both vessels were delivered in Q2 2026. 

Nam Cheong said the net proceeds will be primarily redeployed to support the group’s shipbuilding activities, either for external sales or to support the expansion of the group’s fleet. It said the sales are part of its ‘reprofiling initiatives,’ enabling the divestment of relatively old vessels at opportune timing and pricing, while supporting efficient capital recycling for its inhouse shipbuilding operations. 

Nam Cheong chief executive Leong Seng Keat said, “The group continues to see increasing demand for newbuilds and earlier this year secured its first shipbuilding contract for four OSVs in more than a decade. We view this newbuild sale as a further encouraging signal of emerging shipbuilding demand.” He noted that offshore activity and demand for OSVs remain robust and EPCI expenditure is expected to increase in 2026. At the same time, the ageing global fleet and limited newbuild appetite underscore a tightening supply outlook.

On 16 April 2026, Nam Cheong also announced that it had significantly reduced its total restructured debt balance by 42%, from RM492.2M at the completion of its restructuring in March 2024 to RM285.0M, through total repayments of approximately RM207.2M in just two years.