Nam Cheong secures US$58 million in orders for two vessels

SINGAPORE - Mainboard-listed Nam Cheong said on Wednesday that it has secured sale contracts for two vessels with a total value worth approximately US$58 million (S$80.3 million).

The group secured a sales order for a 200-men Accommodation Work Vessel ("AWV") from Marco Polo Marine, an integrated offshore supply and marine logistic group with an established track record in the chartering of OSVs (offshore supply vessels) in the region.

One 12,000 bhp Anchor Handling Towing Supply Vessel was sold to a repeat customer based in Dubai, Topaz Energy and Marine Limited, a leading OSV company providing marine solutions to the global energy industry.

The contracts are expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2015, and Dec 31, 2016.

Said Mr Leong Seng Keat, Nam Cheong's chief executive officer: "These contracts brings our cumulative order book to a robust RM1.7 billion (S$632 million), pointing to the credibility and soundness of our reputation as a shipbuilder amidst an outlook of uncertainties in the macro environment. In particular, we are heartened to have attained the vote of confidence from our repeat customers for the continued demand for our vessels."