The vessel is expected to be handed over in December 2025, and the transaction is projected to make a positive contribution to Nam Cheong’s earnings for the financial year ending 2025, the Singapore listed group said in a filing to the exchange on December 24.

According to the company, proceeds from the sale will be largely reinvested into its core shipbuilding operations. This includes funding newbuild projects for third party customers or supporting potential fleet expansion, depending on market conditions, with the aim of strengthening the group’s recurring income base.

Nam Cheong, which is headquartered in Sarawak, said the divestment aligns with its broader fleet reprofiling programme, under which older vessels are sold when market timing and pricing are favourable. The approach allows the group to recycle capital efficiently while maintaining flexibility to support its in house shipbuilding capabilities.

Chief executive Leong Seng Keat noted that Nam Cheong’s long-standing expertise in OSV construction and its established international customer network position the company well to identify monetisation opportunities. By selectively divesting ageing assets, the group is able to unlock value while capturing earnings upside, he said.

Following the announcement, Nam Cheong shares rose 3.6 per cent, gaining S$0.03 to close at S$0.875 on Wednesday.

Hoàng Duy