Malaysia-based OSV shipbuilder Nam Cheong has sold three of nine 5,150 bhp Anchor Handling Towing Supply vessels that are currently being built for stock. Contracts worth a total $38 million have been secured for the vessels with a new Singapore customer, Sentinel Marine Pte Ltd.
Though Nam Cheong’s main shipbuilding facility is in Malaysia, the ABS class AHTS vessels are currently being built as part of a series in one of the three Chinese shipyards contracted by Nam Cheong. With a length of 59 meters, each vessel has a bollard pull of 62 tonnes. The vessels are scheduled for delivery to Sentinel Marine between the second and fourth quarters of 2012.
Revenue from these contracts will be recognized over the respective contractual period according to the Group’s revenue recognition policy, as stated in its Offer Information Statement dated May 10, 2011. These contracts are expected to contribute positively to the earnings of the Group for the financial years ending 2011 and 2012.
“Despite market concerns of an oversupply of smaller offshore support vessels, we continue to see a demand for AHTS and by securing these new contracts, it confirms again our market prediction for a continued demand for AHTS. We are even more pleased that this contract comes from a new Singapore-based company, signaling an expansion of our customer base,” said Mr Leong Seng Keat, Nam Cheong’s Executive Director.
Nam Cheong is able to deliver up to 12 vessels (depending on the size and complexity of the OSVs) from its 12.6-hectare Miri shipyard located in Kuala Baram, Sarawak, Malaysia. In line with the increase in demand for Nam Cheong’s vessels in recent years, the Group has outsourced the construction of vessels to selected shipyards in China,. This has given the Group access to additional production capacities and Nam Cheong has successfully delivered over 50 vessels in the past three years.
With these latest contracts, Nam Cheong’s order book has increased to 11 vessels, six scheduled for delivery in the second half of this year and five for delivery in 2012.
July 26, 2011