Marco Polo Marine Q3 gross profit up 2.6% on favourable supply-demand environment
Revenue for the period falls 4.6% to S$34.9 million
INTEGRATED marine logistics company Marco Polo Marine posted a 2.6 per cent rise in gross profit to S$14.6 million for the third quarter ended Jun 30, 2024, from S$14.2 million over the same period a year ago.
This was despite a 4.6 per cent decline in revenue to S$34.9 million, from S$36.8 million a year earlier.
In a business update on Thursday (Aug 22), the company attributed the lower revenue figures to capacity limitations with its shipyard segment.
As one of its three dry docks was fully utilised to construct its Commissioning Service Operation Vessel (CSOV), the company was unable to take on third-party jobs.
Furthermore, Marco Polo Marine said that the delivery of the CSOV will be delayed by about four months, which could lead its client, Vestas Taiwan, to activate the liquidated damages (LD) clause in its charter contract.
“However, after considering the potential financial impact of the LD, the group does not anticipate a material impact on its net profit attributable to owners for the financial year ending Sep 30, 2024,” it added.
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Meanwhile, the company noted that a favourable supply-demand environment helped it command higher charter rates for its Offshore Support Vessels (OSVs).
It said that its ship chartering segment “performed well” despite a six-percentage-point decline in average fleet utilisation rates to 86 per cent, from 92 per cent a year earlier.
“The current 86 per cent (utilisation rate) reflects a more typical operating level for the Q3 financial period,” the company noted. “Additionally, the group’s asset-light strategy of rechartering third-party vessels also enhanced this segment’s overall operating performance.”
In the near term, Marco Polo Marine said that it remains positive on its outlook within the OSV market.
Furthermore, it added that growing investments in clean energy projects could positively impact the group’s fleet of offshore vessels.
“The offshore oil and gas market is also anticipated to remain tight in the foreseeable future due to rising demand that is not sufficiently met by vessel availability.”
Shares of Marco Polo Marine closed 3.9 per cent or S$0.002 higher at S$0.054 on Thursday, before the update.
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