Nam Cheong has won charter contracts worth RM102.5 million for two of its support vessels for two-year terms, with an option to extend by another year.
One of Nam Cheong's anchor handling tug supply vessel has been chartered to Offshore Oil Engineering Co, a subsidiary of CNOOC. A maintenance work vessel, meanwhile, is chartered to a regional independent oil producer.
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: Marco Polo Marine wins 15-year chartering contract in Taiwan worth $118 mil
"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%.
