Nam Cheong wins 2 barge orders worth $105 million

SINGAPORE - Mainboard-listed Nam Cheong has sold two accommodation work barges worth some US$84 million (S$105 million) to Bursa-listed Perdana Petroleum.

The latter has the option to purchase another two vessels from Nam Cheong.

In July last year, Nam Cheong sold one large of a smaller size, to Perdana, a repeat customer.

Perdana is an established, major offshore marine services provider for the oil and gas industry in Malaysia and the Southeast Asian region.

The two barges on order will be the first-of-its-kind in Malaysia when delivered and the largest accommodation vessels to be built by Nam Cheong.

"With this contract, we are pleased to note that our cumulative order book has further increased to a high of RM1.5 billion," said Nam Cheong chief executive Leong Seng Keat.

The larges are to be constructed under Nam Cheong's build-to-order model in one of the group's subcontracted yards in China.

They are scheduled for delivery in 2016 and are expected to contribute positively to Nam Cheong's earnings for the financial years ending Dec 31, 2014 to Dec 31, 2016.