MAINBOARD-LISTED Marco Polo Marine : 5LY 0% has posted a 75.8 per cent increase in its gross profit to S$11.6 million for the first quarter ended Dec 31, 2023, from S$6.6 million in the previous corresponding period.

In a business update on Thursday (Feb 8), the shipyard and marine logistics company attributed this to an uptick in its ship chartering business and only a marginal decrease in its shipyard operations.

Revenue climbed 22.8 per cent to S$29.1 million from S$23.7 million previously. The gross profit margin was 39.9 per cent, up from 27.8 per cent in the previous corresponding period.

It said that the significant increase in gross profit was mostly due to the increased charter and utilisation rates of the group’s fleet of offshore supply vessels. There was a 9 percentage point year-on-year increase in average utilisation rates, bringing operating capacity to 70 per cent.

Its shipyard segment “held steady”, with a decline in ship repair volume attributed to the reopening of competing Chinese shipyards, although this was mitigated by “sustained momentum” in shipbuilding activities from the previous quarter.

Sean Lee, chief executive officer of Marco Polo Marine, said: “We are pleased with our first-quarter performance as our ship chartering segment extended its growth momentum, thanks to increased charter rates and vessel utilisation.”

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The company predicts continued demand and higher utilisation rates for offshore supply vessels in South-east Asia from wind farms and oil and gas platforms, while shipyard demand could pick up with the stabilisation of China’s reopening.

Shares of Marco Polo Marine closed Thursday S$0.002 or 3.6 per cent down at S$0.054, before the update.