Nam Cheong sells 3 vessels for $89m, on track for record sales this year

Offshore marine company Nam Cheong has secured contracts to sell three vessels worth US$70.5 million (S$89.0 million), the firm said on Tuesday.

This brings its total sales so far this year to 16 vessels and puts it on track to surpass last year's record of 21 vessel sales.

The three vessels sold include two platform supply vessels, one of which was sold to a repeat customer that is a leading oilfield services company based in Asia. The other was sold to a new customer in Cyprus, EDT Offshore, which owns and operates a diverse range of offshore support vessels, Nam Cheong said.

The third vessel is an accommodation work barge that was sold to a subsidiary of Malaysia's Perdana Petroleum Berhad, also a repeat customer.

The new wins bring Nam Cheong's order book to 1.5 billion ringgit ($597 million), said the company's chief excutive officer Leong Seng Keat.

"Year to date, we have sold a total of 16 vessels compared to seven vessels sold during the same period last year," he said.

"Given the robust industry momentum, we believe that we are on track to surpass our record high of 21 vessel sales achieved last year."

The three vessels are scheduled for delivery between the first and fourth quarters of next year, and are expected to contribute positively to the Group's earnings for the financial years ending this year and next.