With Opec+ expected to maintain production increases while the global offshore support vessel (OSV) fleet with an average age of 15 to 16 years nearing a replacement cycle, Ho expects Nam Cheong to be well-positioned to seize opportunities from the offshore upcycle. Combined with a “buoyant” OSV resale market, she believes the signs are promising for more newbuild orders.
In reports issued on Feb 24, both DBS Research Group and CGS International have reiterated their confidence in Nam Cheong after the latter clinched a US$64.5 ($81.6) million shipbuilding contract with ADNOC Logistics and Services, a subsidiary of the Abu Dhabi National Oil Company (ADNOC).
Striking an upbeat tone, Ho Pei Hwa of DBS writes: “First newbuild orders in over a decade; more to come!” Maintaining its “buy” call at an unchanged target price of $1.60, Ho believes that Nam Cheong’s first newbuild order in more than a decade is a harbinger of more.
