The Board of Directors of Nam Cheong Limited announced that Nam Cheong International Ltd., a wholly-owned subsidiary of Nam Cheong, has secured sale contracts with a total value worth USD72.1 million for two units of Anchor Handling Towing Supply (“AHTS”) vessels and four units of Emergency Response and Rescue Vessels (“ERRVs”).
The two AHTS vessels were sold to subsidiaries of Icon Offshore Berhad (“Icon Offshore”), one of Malaysia’s largest Offshore Support Vessel groups with a portfolio of 32 vessels providing various logistic, oil and gas services in Southeast Asia and the Middle East. These vessels will be deployed in Malaysian waters. The AHTS vessels are being constructed as part of the Group’s build-to-stock series.
The four ERRVs will be sold to a Singapore-based company that provides ship management and chartering services. The ERRVs will be deployed in the North Sea, and constructed under Nam Cheong’s build-to-order model.
The six vessels are all of American Bureau of Shipping (ABS) class and will be built in one of Nam Cheong’s subcontracted yards in China. They are scheduled for delivery between the second quarter of 2013 and the fourth quarter of 2014.
Revenue from the Contracts will be recognised over the relevant contractual period in accordance with the Group’s revenue recognition policy. The Contracts are expected to contribute positively to the earnings of the Group for the financial years ending 2013 and 2014.
With the Contracts, Nam Cheong’s order book stands at approximately RM1.3 billion to date. None of the Directors or controlling shareholders of Nam Cheong has any interest, direct or indirect, in the above transactions other than through their shareholdings in Nam Cheong.
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