Nam Cheong trims debt to $72m amidst OSV replacement pressure

The 42% debt reduction follows the $52.3m repayment in over two years.

Nam Cheong cut 42% of its restructured debt to $72.0m (RM285.0m) in April 2026 from $124.3m (RM492.2m) at restructuring completion in March 2024, following the repayment of $52.3m (RM207.2m) over two years.

The group said in a press release that the repayments were funded through chartering cash flow and vessel sale proceeds, with prepayments covering obligations originally due up to three years ahead of schedule.

As at 31 December 2025, net gearing stood at 0.27x, whilst about 69% of the fleet is secured on long-term charters, supporting earnings visibility and ongoing deleveraging. The group said it has sufficient runway until 2031.

The group’s fleet averages nine years in age, compared with an industry average of 14 to 15 years, as offshore support vessel operators face replacement pressure amidst limited newbuild activity and constrained yard capacity.

Nam Cheong said its balance sheet position provides capacity to pursue growth as demand conditions improve in the offshore support vessel market.

(US$1 = RM3.96)