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Nam Cheong lands OSV charter contracts worth up to $32m

Malaysia’s Nam Cheong has clinched long term chartering contracts worth MYR130m ($32m), including options, for one PSV and two AHTS vessels to service oil majors in Malaysian waters.

The option for extension is valued at MYR50m.

The three OSVs will be used to service works on floating LNG facilities and other production operations until 2022, with optional extension period running until 2024.

“With the OSV industry steadily gaining pace, our focus for growth now shifts to our 32-strong fleet as we bolster our chartering operations to capture the gradually recovering market,” said Leong Seng Keat, ceo of Nam Cheong.

“We are steadily scaling up our capabilities and expertise to better service oil and gas players’ offshore support needs, with an eye on other business opportunities in the offshore marine industry,” Leong added.

With the new contracts, Nam Cheong’s chartering orderbook stands at MYR295m, including option for extension of MYR140m.

Singapore-listed Nam Cheong said the contracts are expected to contribute positively to the group’s financial performance for the financial year ending 31 December 2019 through to 31 December 2022.

Read more: Nam Cheong looks forward to better times ahead after completing restructuring

After restructuring its debt last September, Nam Cheong is now moving forward in rebuilding by expanding its vessel chartering segment, diversifying its income stream through exploring the EPCIC segment, and evolving its shipbuilding capabilities to cover a broader scope of offshore marine related services including fabrication work.

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