Nam Cheong has sold a vessel to an Indonesian customer for US$19.8 million, as part of its "fleet reprofiling" moves.
The company says that the sale of this 11-year-old, 3,000 deadweight tonne platform support vessel, to be completed within this quarter, will contribute positively to its current FY2026 earnings.
Nam Cheong plans to use net proceeds from the sale to reduce debt and for working capital.
With this sale, the company will manage a total of 36 offshore support vessels with an average age of 9 years.
"The relatively young fleet provides the group with a long runway to generate recurring income from charter contracts, or monetisation at opportune times to advance capital recycling," the company says.
Around a month earlier, the company had sold a slightly larger vessel for US$20.5 million.
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“I believe that we are at a sweet spot supported by our complementary OSV chartering and shipbuilding businesses," says CEO Leong Seng Keat.
"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," he adds
According to Leong, with Nam Cheong resuming its shipbuilding activities, it can then choose to either sell or charter the vessels.
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"We believe this dual-pronged strategy will not only advance growth momentum with stronger cash flows but also unlock shareholder value over time," says Leong.
Nam Cheong shares closed at $1.08 on Jan 26. It is up 145.45% in the past year.
