Nam Cheong has secured multi-year offshore support vessel (OSV) charter contracts worth RM1.22 billion ($368.7 million). The contract includes options for extension from the regional and international oil majors.
The charters are expected to begin in 2025 for a firm charter period of 3 years.
According to the group, the deal is set to reinforce Nam Cheong ’s presence in the OSV market in Southeast Asia and will provide the group with steady revenue visibility.
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Under the contracts, the group will charter a total of twelve vessels, comprising anchor handling tug supply vessels, platform supply vessels, safety standby vessels and landing craft. The vessels constitute approximately one-third of the group’s fleet.
Leong Seng Keat, CEO of Nam Cheong, says: “We are thrilled to be awarded with these sizeable long-term contracts by the regional and international oil majors. This achievement underscores our commitment to excellence and strengthens our partnerships with these industry leaders. It also showcases our strong operational track record and further highlights Nam Cheong's commercial capabilities as a key regional OSV player and position in the growing Sarawak oil and gas industry.”
The group adds that the long-term charter contracts are expected to contribute positively to Nam Cheong’s financial performance from the financial year ending Dec 31, 2025.
Shares in Nam Cheong closed flat at 36.5 cents on Nov 28.
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