Nam Cheong spreads its wings outside oil and gas sector
Malaysian offshore support vessel (OSV) provider Nam Cheong has secured new charter contracts valued at up to 204.1 million ringgit ($47.5 million) for projects in Japan and the Middle East, expanding its exposure outside the oil and gas sector.
“While oil and gas remains [sic] a core market for us, we are seeing growing potential in offshore renewables and marine environmental services,” noted Nam Cheong chief executive Leong Seng Keat.
These contracts encompass three OSVs, including anchor-handling tug supply vessels and fast crew boats. The vessels are to be chartered for up to two years, commencing this year, with options to extend.
Nam Cheong on Monday said these contract wins boost the proportion of its fleet under long-term charters to 24 vessels (63%), marking “steady progress” towards its 70% target.
“Our target of having 70% of the fleet on long-term contracts not only provides earnings stability but also gives us the flexibility to pursue attractive opportunities as they emerge in the evolving markets,” added Leong.
Two of the three vessels will be chartered to Saudi company SAIL in the Middle East to support environmental preservation projects with the remaining vessel being hired to an offshore wind farm contractor in Japan.
The vessel provider commented that its penetration into green offshore projects highlights “the capability and adaptability” of its fleet to operate across diverse offshore operations.
“Meanwhile, our expansion into the Middle East and Japanese waters reflects a strategic move to diversify the group’s geographical exposure and reduce concentration risk,” said Nam Cheong.
“Collectively, these efforts strengthen the resilience of our fleet operations, enabling us to navigate the evolving market dynamics and ongoing macroeconomic uncertainties.”
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