NamCheong sold a platform support vessel to an Indonesian client for USD 19.8 million | Lianhe Zaobao

Shipbuilding company Nam Cheong sold a Platform Supply Vessel for USD 19.8 million (SGD 25 million) to a customer in Indonesia. The Platform Supply Vessel has a deadweight of 3,000 tons and is 11 years old. This is the second Platform Supply Vessel sold by Nam Cheong in about a month. The company, listed on the Singapore Exchange mainboard, revealed on Monday evening (January 26) that the sale of the vessel is part of the group's fleet restructuring plan, which is expected to make a positive contribution to the group's earnings for the fiscal year ending 2026. The delivery of the vessel is expected to be completed in the first quarter of 2026, and the net proceeds will be used to repay debts and meet working capital needs. The company disclosed that the vessel sold to the Indonesian customer will be deployed immediately to support business operations. This transaction aligns with the recovery of offshore activities in Indonesia, where upstream oil and gas investments are expected to grow by 28.6% year-on-year in the first half of 2025, reaching USD 7.19 billion, the highest level in a decade. After the sale of the vessel, Nam Cheong will manage a total of 36 Offshore Support Vessels (OSVs), with an average age of nine years. This relatively young fleet provides the group with long-term development space, allowing it to generate regular income through charter contracts or realize value at the right time, thereby accelerating capital turnover. Further Reading Shipbuilding company Nam Cheong's net profit plummets 95% in the first quarter, remains cautiously optimistic about growth prospects China's Ministry of Commerce announces a one-year suspension of sanctions against South Korean shipbuilding giant's US subsidiary In 2024, the global offshore support vessel market is expected to reach USD 4.73 billion, with a projected compound annual growth rate (CAGR) of 7.5% from 2025 to 2034, reaching USD 9.75 billion by 2034. Nam Cheong's president, Liang Chengjie, pointed out that with complementary offshore support vessel leasing and shipbuilding businesses, the company is in a good development phase. He stated, "We can choose to generate regular income by selling old vessels or continue to create revenue through vessel leasing services. At the same time, as the shipbuilding business recovers, we have the capability to conduct external vessel sales or expand the scale of our vessel leasing fleet. "We believe that this dual-pronged strategy can not only drive growth momentum through stronger cash flow but also unlock shareholder value over time." On December 24 last year, Nam Cheong disclosed that it sold a Platform Supply Vessel with a deadweight of 4,000 tons for USD 20.5 million, with the buyer being a Vietnamese offshore and maritime group, and the vessel was handed over at the end of last year NamCheong's stock price closed flat at 1.08 yuan on Monday, having risen about 15% this year