Nam Cheong offloads ageing fleet in $48.8m vessel sale

The company divests older offshore vessels whilst reviving newbuild activity after a decade.

Nam Cheong Limited has sold two offshore support vessels (OSV) for $48.8m (US$36.7m), including its first newbuild vessel sale in over a decade, with both vessels delivered in the second quarter of 2026.

According to a press release, the Singapore-listed OSV provider entered into agreements with a vessel operator in Indonesia and a government-linked vessel operator in Egypt.

The transactions cover one newbuild multi-purpose support vessel and one 120-tonne anchor handling tug supply vessel, which will turn 16 years old in 2026.

The company sold the older vessel following the completion of its charter contract in the first quarter of 2026.

Nam Cheong said it will redeploy net proceeds to support its shipbuilding activities, either for external sales or fleet expansion, depending on market conditions.

The sales form part of the group’s fleet reprofiling strategy, which includes divesting ageing vessels and recycling capital into its in-house shipbuilding operations.

Leong Seng Keat, Chief Executive Officer of Nam Cheong, said the company’s shipbuilding capabilities support both newbuild sales and fleet expansion, depending on market opportunities.

The company said offshore activity and demand for OSV remain strong, citing projections that offshore engineering, procurement, construction, and installation expenditure will rise 32% to $94.4b (US$71b) in 2026.

Leong added that an ageing global OSV fleet and limited appetite for newbuilds point to tightening supply.

Nam Cheong also secured a shipbuilding contract earlier this year for four OSV, its first such contract in more than a decade, and views the latest newbuild sale as a sign of rising demand, he said.

(US$1 = SG$ 1.33)