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Marco Polo Marine records 28.9% y-o-y increase in revenue of $36.8 million for 3QFY2023

Nicole Lim
·2-min read

The group’s 9MFY2023 revenue came in at $92.7 million, 65% higher y-o-y.

Marco Polo Marine 5LY has reported a revenue of $36.8 million, up 28.9% y-o-y for the 3QFY2023 ended June 30 on the backing of strong performance from both ship catering and shipyard business.

The group’s 9MFY2023 revenue came in at $92.7 million, a 65% increase y-o-y due to the full consolidation of results from the Pelayaran Nasional Bina Buana Raya (BBR) and PKR Offshore (PKRO).

Gross profit increased 47.2% y-o-y, amounting to S$14.2 million during the same period, with gross profit margin improving by 38.7%.

Marco Polo Marine’s ship catering segments experienced positive developments as the Offshore Vessel (OSV) market continued to recover, driven by favourable energy prices, increased offshore field development, and supply-side constraints for OSVs.

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In a report dated Aug 16, the group says that there has been a notable increase in demand for OSVs during the quarter, leading to an 8 percentage points (ppt) y-o-y rise in utilisation rates, reaching an impressive 92% operating capacity for the period.

Contributions from Pelayaran Nasional BBR and Taiwan-based offshore renewables service PKRO have further boosted vessel charter and utilisation rates from March and May of 2022, respectively.

Similarly, its shipyard segment saw strong demand from its end users, with shipbuilding and ship repairs activity ramped up for the quarter with average utilisation rates for ship repairs operating at nearly full capacity.

The segment's shipyard was operating at an average utilisation rate of 93%, showing a 9 ppt increase compared to the same period last year.

As at March 31, the group had a net cash position of $50.2 million, and a net asset value of 4.3 cents per share. The group’s assets are primarily backed by hard assets including cash and property, plant and equipment (PPE).

The group notes that the OSV market in Southeast Asia continues to show signs of strength driven by the same few factors that resulted in its positive developments for this 3QFY2023.

“We maintain our strong operating performance in 3QFY2023 as we continue to observe increasing shipbuilding and ship chartering demand in the region,” said Sean Lee, chief executive officer of Marco Polo Marine. “Notwithstanding any unforeseen circumstances, we anticipate a positive finish to the year.”

Shares in Marco Polo Marine closed flat at 5.2 cents on Aug 16.

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