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Marco Polo Marine shrinks H1 net loss to S$708,000, says it's in better shape than in last oil crash
MARCO Polo Marine is in better shape to ride out the ongoing oil and gas crisis than it was during the crash of 2016, the board said in a bourse filing on Friday, as the offshore and marine player sharply narrowed its losses for the six months to March 31.
Marco Polo, which emerged from debt restructuring in 2017 after a bail-out by a group of white knights, saw its first-half net loss shrink to S$708,000, from S$4.82 million in the year before.
While it was dragged into the red on finance costs and a share of joint-venture losses, it has turned an operating profit amid a 49.5 per cent year-on-year jump in revenue to S$18.6 million.
Both the ship-chartering and shipyard business units posted turnover growth, which the group attributed to an improved utilisation of offshore vessels and more ship-repair projects.
Meanwhile, the board warned that Marco Polo’s earnings capacity and its ability to get new charter contracts could take a hit “in the next few months” from both the coronavirus pandemic and a plunge in global oil prices.
Ship repair works are also expected to decrease as international clients grapple with the lockdowns imposed to curb the spread of the deadly disease, even though Marco Polo has upgraded its drydock to handle larger vessels, the board added.
Still, Marco Polo noted that it has diversified into new businesses such as submarine cable installations and offshore wind-farm projects, and is working to expand beyond South-east Asia.
“The group is now better positioned to ride through the current crisis with a stronger balance sheet, coupled with prudence in debt and cash flow management,” the board added.
Loss per share was 0.02 Singapore cent, compared with 0.14 Singapore cent in the year before, while net asset value was flat at 3.1 Singapore cents a share.
No dividend was declared for the half-year, unchanged from the year prior, in a decision that the board said was made “in view of the loss-making position of the group”.
The counter closed flat at 1.3 Singapore cents before the latest announcements.