The net proceeds from the sale will be redeployed primarily to support the group’s shipbuilding activities.
KUCHING (Dec 26): Nam Cheong Ltd (Nam Cheong) has entered into a sales agreement with an established Vietnam-based offshore and marine group to dispose of a 4,000 deadweight ton (DWT) platform supply vessel (PSV) for US$20.5 million.
The Sarawak-based, Singapore-listed offshore support vessel (OSV) provider said delivery of the vessel is scheduled for December 2025, with the transaction expected to contribute positively to the group’s earnings for the financial year ending 2025.
It added that the net proceeds from the sale will be redeployed primarily to support the group’s shipbuilding activities.
This includes vessels intended for external sales or fleet expansion to strengthen its recurring income base, depending on market opportunities.
The divestment forms part of the group’s fleet reprofiling strategy, which focuses on monetising relatively ageing vessels at favourable timing and pricing, while enabling efficient capital recycling for its in-house shipbuilding operations.
Nam Cheong noted that the global OSV fleet is nearing a turning point, with major operators such as Tidewater, Bourbon and COSL running fleets with average ages of about 14 to 15 years.
In Southeast Asia, the average OSV age is higher at around 16.5 years. As safety and efficiency requirements tighten, many older vessels may face retirement or require costly upgrades.
“Against this backdrop, the group’ vessels, which are relatively younger within the regional fleet profile, are well positioned to support customers’ near-term fleet expansion or renewal programmes,” it said.
Chief executive officer Leong Seng Keat said the group’s OSV shipbuilding heritage and established global client base allow it to identify and capitalise on vessel monetisation opportunities.
“This enables the group to capture earnings upsides through the sale of the existing aged vessel.
“Complementing this, the group’s in-house shipbuilding capabilities provide a sustainable and flexible vessel supply, supporting vessels sales when market opportunities arise, or enabling fleet expansion to grow a recurring income base as appropriate,” he said.
Facebook Twitter LinkedIn Threads WhatsApp TelegramThe post Nam Cheong to sell vessel for US$20.5 million appeared first on Borneo Post Online.
No comments yet.