Offshore support vessel (OSV) builder and charterer Nam Cheong Ltd is selling a platform support vessel to a Vietnam-based offshore and marine group for US$20.5 million (RM83.1 million).

Net proceeds from the sale of the 4,000 deadweight tonnage vessel will mainly be redeployed to support its shipbuilding activities, the Singapore Exchange-listed group said in a statement on Monday (Dec 22).

“The vessel sale is part of the group’s fleet reprofiling initiatives, enabling the divestment of relatively ageing vessels at opportune timing and pricing while supporting efficient capital recycling for its in-house shipbuilding operations,” the Sarawak-based group said.

Delivery of the vessel is scheduled for this month, and the sale is expected to contribute to its earnings for the financial year ending 2025.

Nam Cheong observed that the group is well-positioned to support global and regional near-term OSV fleet expansion or renewal programme, given its relatively younger fleet profile.

Major OSV owners such as Tidewater, Bourbon and COSL operate fleets averaging around 14–15 years old while Southeast Asian players run even older fleets at about 16.5 years.

In contrast, Nam Cheong’s OSV fleet has an average age of around eight years.

“As stricter safety and efficiency requirements continue to be implemented, many of these OSVs will face retirement or require costly upgrades,” it noted.

Nam Cheong CEO Leong Seng Keat said the group’s OSV shipbuilding heritage and established global clientele base allow it to identify and capitalise on market opportunities for vessel monetisation.

“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 vessel sales when market opportunities arise, or enabling fleet expansion to grow a recurring income base as appropriate,” he added.
Source: The Edge Malaysia