SIBU: Sarawak-based Nam Cheong Ltd Group (Nam Cheong), one of Southeast Asia’s leading offshore support vessel (OSV) providers, has recently entered into sales agreements with a vessel operator in Indonesia and a government-linked vessel operator in Egypt to sell two OSVs for USD36.7 million (approx. RM175 million).
The transactions comprised sales of one newbuild multi-purpose support vessel, the group’s first newbuild sale in over a decade, as well as one anchor handling tug supply (AHTS) 120-tonne vessel turning 16 years old in 2026, which was timed for disposal following the charter contract completion in first quarter of 2026.
Both vessels are set to be delivered in the second quarter of 2026.
According to Nam Cheong in a media release today, net proceeds will be primarily redeployed to support the group’s shipbuilding activities, either for external sales or to support the group’s fleet expansion to grow the recurring income base, depending on prevailing opportunities.
The vessel sales are part of the group’s fleet reprofiling initiatives, enabling the divestment of relatively ageing vessels at opportune timing and pricing, while supporting efficient capital recycling for its in-house shipbuilding operations.
Commenting on the two vessel sales, Nam Cheong’s Chief Executive Officer, Leong Seng Keat, said, “Our strong OSV shipbuilding heritage and established global clientele base allow us to identify and capitalise on market opportunities for vessel monetisation.
“This enables the group to capture earnings upsides through the sale of both newbuilds and existing ageing vessels. Complementing this, the group’s in-house shipbuilding capabilities provide a sustainable and flexible vessel supply, supporting newbuild sales when market opportunities arise, or enabling fleet expansion to grow a recurring income base as appropriate.”
Looking forward, offshore activities and demand for OSVs remain robust, he said, and offshore engineering, procurement, construction and installation (EPCI) expenditure is expected to increase meaningfully in 2026, with spending projected to rise 32 per cent to USD71 billion.
At the same time, he noted that ageing fleet and limited newbuild appetite underscore a tightening supply outlook.
“With an ageing global OSV fleet, the group continues to see increasing demand for newbuilds. Earlier this year, the group successfully secured its first shipbuilding contract for four OSVs in more than a decade.
“We view this newbuild sale as a further encouraging signal of emerging shipbuilding demand,” Leong added.
