Stocks In Focus SG (Nam Cheong, Tritech, Vard Hldgs) – 31/12/13

Nam Cheong Sells 4 Vessels Worth $83.8m

• Nam Cheong sold three anchor handling towing supply vessels to its jointly controlled firm, PT Bahtera Niaga Indonesia, and one maintenance/work vessel to a repeat customer, Icon Offshore, for US$66 million ($83.8 million).

• The vessels, scheduled for delivery in 2014, are constructed as part of Nam Cheong’s build-to-stock series in its subcontracted yards in China.

• With the sales, Nam Cheong’s annual vessel sales attained a record high of 24 in 2013, surpassing the previous high of 21 vessels set last year, and pushed its cumulative order book to RM1.5 billion ($576.9 million).

Significance: Nam Cheong views 2014 optimistically with global exploration and production expenditure expected to rise 6 percent to US$723 billion, led by buoyant activities in the Middle East, Latin America and Russia.

Tritech Awarded $1.5m Geotechnical Engineering Consultancy Contract

• Tritech Group’s subsidiary, Tritech Consultants, has won a $1.5 million contract from the National Parks Board of Singapore to provide geotechnical engineering services.

• In the contract, Tritech Consultants will provide, among other things, preliminary and detailed assessment and stability analysis of hazard and risk assessment of selected managed slopes.

• The contract will lasts for three years commencing from 23 December 2013.

Significance: Specialist engineering services, which includes geotechnical consultancy, contributed 64 percent of Tritech Group’s annual turnover in FY13.

Vard Inks Contract For 1 Diving Support And Construction Vessel

• Vard Holdings has secured a contract to design and build one diving support and construction vessel for Harkand Group worth more than NOK1 billion.

• Utilising the VARD 3 03 design, the vessel, capable of supporting split level diving operations to a maximum diving depth of 300 meters, will boast good sea-keeping abilities, excellent station keeping performances and low fuel consumption.

• Harkand is a global subsea inspection, repair and maintenance group with operations in Africa/Middle East, Asia Pacific, Europe and North America.

Significance: The vessel is scheduled for delivery in 2Q16 with an option to purchase a second similar vessel.

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