Both vessels are used to support offshore oil and gas activities in south east Asia.
With these two long-term charters, 25 out of Nam Cheong’s 36-vessel fleet are now under long-term charters, raising the fleet’s long-term charter coverage to 69%, just a shade below the 70% target.
This supports its long-term revenue visibility and contributes to its base of recurring income.
Nam Cheong expects vessel utilisation to improve in 2026, supported by the commencement of more long-term charters.
See also: Penguin delivers composite superstructure to Singapore navy
"These charter contracts underpin our clients' confidence in the quality of our fleet," says CEO Leong Seng Keat.
The company's average vessel is now 9-year-old, which is lower than the market average.
Leong believes that with around 70% of the charters on long-term arrangements, Nam Cheong has achieved a good balance between earnings stability and room to capture upsides in the spot market.
Nam Cheong shares closed at $1.52, up 5.56% for the day, extending a year to date gain of 53.54%.
