Marco Polo Marine Q1 profit up 154% to S$6.6 million
INTEGRATED marine logistics company Marco Polo Marine posted a gross profit of S$6.6 million for the first quarter ended Dec 31, up 153.8 per cent from S$2.6 million in the year-ago period.
Revenue surged 95.9 per cent to S$23.7 million, from S$12.1 million a year earlier.
This was the result of “continuous growth” in both the shipyard and ship chartering segments, said the group in a business update on Wednesday (Feb 15).
Revenue from its shipyard segment rose year on year on full-quarter contribution, thanks to more ship-repair activities, larger contracts from customers and the commencement of new shipbuilding projects. There was also “extended capacity” from the completion of extension works on its Dry Dock in Q2 2022.
During the quarter, the group said it also experienced growth in regional market share and stronger demand for the installation of ballast water systems.
Still, the average utilisation rate at its shipyard stood at 74 per cent in Q1, down slightly from the previous year’s 78 per cent.
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On the ship chartering front, revenue surged with strong demand, largely due to interest from the oil and gas, as well as offshore wind farm sectors.
Average charter rates rose year on year, while the group’s average utilisation rates for its vessels increased. There was also consolidation of revenue from Indonesian shipping agency PT Pelayaran Nasional Bina Buana Raya and Taiwan-based PKR Offshore, which Marco Polo Marine holds a 70.7 per cent and 49 per cent stake in, respectively.
Going forward, the group expects to see sustained growth for the rest of the fiscal year, as demand from end customers strengthens in its shipyard and ship chartering segments.
Marco Polo Marine also highlighted that it is in talks with potential joint-venture partners for its commissioning service operation vessel, which is predicted to complete by Q1 2024.
Sean Lee, chief executive officer of Marco Polo Marine, said the offshore wind farm sector continues to present “enormous opportunities” for the group.
“By leveraging on our proven track record, the group is looking forward to partnering with new customers as it expands its geographic presence and develops specialised services to target (the sector),” he said.
Shares of Marco Polo Marine ended flat at S$0.043 on Wednesday, before the release of the business update.
Amendment note: An earlier version of this story said Marco Polo Marine posted a net profit of S$6.6 million, when it should have been gross profit
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