The 11-year-old, 3,000 deadweight tonnage vessel was sold to an Indonesian customer
[SINGAPORE] Shares of Nam Cheong rose S$0.10 or 9.3 per cent in intraday trading to hit S$1.18 at 10.13am on Tuesday (Jan 27), a day after the offshore marine group announced the sale of a platform support vessel for US$19.8 million (S$25.1 million).
The mainboard-listed company announced on Monday that it had entered into an agreement with an Indonesian customer to sell an 11-year-old, 3,000 deadweight tonnage vessel. The vessel is intended for immediate deployment to support the customer’s ongoing operations.
The release did not identify the Indonesian customer.
Nam Cheong noted that the transaction aligns with a “pickup in offshore activities in Indonesia”. Investments in the country’s upstream oil and gas sector reached a decade-high of US$7.19 billion in the first half of 2025, representing a 28.6 per cent increase year on year.
The group expects the sale to contribute positively to its earnings for the financial year ending Dec 31, 2026. The net proceeds from the disposal will be redeployed to accelerate debt repayment and fund working capital needs, Nam Cheong said.
Following the sale, Nam Cheong will manage a fleet of 36 offshore support vessels with an average age of nine years. The group stated that this “relatively young fleet” provides a runway to generate recurring chartering income or to monetise assets at opportune times to advance capital recycling.
Nam Cheong chief executive Leong Seng Keat said the group is currently in a “sweet spot,” supported by its complementary chartering and shipbuilding businesses.
“We have the optionality to generate recurring income through the monetisation of our older vessels via ship sales or continue to generate revenue with our chartering services,” Leong said. “At the same time, with the resumption of our shipbuilding business, we have the capability of external vessel sales or expanding our ship chartering fleet”.
The vessel delivery is expected to be concluded in the first quarter of 2026.
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