Nam Cheong entered into a sales agreement with an undisclosed Indonesian customer on January 26 to sell an 11-year-old platform support vessel for $19.8 million. The 3,000 DWT vessel is intended for immediate deployment by the buyer.
Nam Cheong stated the sale is part of its fleet reprofiling initiatives and is expected to contribute positively to the company's earnings for the financial year ending 2026.
The company remarked that the transaction coincides with a rise in offshore activities in Indonesia. Investments in upstream oil and gas in the region reached a decade-high of $7.19 billion in the first half of 2025, representing a 28.6 per cent increase year-on-year.
Nam Cheong expects vessel delivery to be concluded in the first quarter of 2026. The company intends to allocate the net proceeds toward debt repayment and working capital requirements.
Following the sale of the vessel, Nam Cheong will manage a total of 36 offshore support vessels with an average age of nine years.
Leong Seng Keat, Chief Executive Officer of Nam Cheong, said, “I believe that we are at a sweet spot supported by our complementary OSV chartering and shipbuilding businesses.”
He noted that the company has the optionality to generate income through the monetisation of older vessels via ship sales or through chartering services. Seng Keat added that Nam Cheong believes its strategy will, “advance growth momentum with stronger cash flows”.