Marco Polo Marine has reported revenue of $29.1 million for the 1QFY2024 ended Dec 31, 2023, 22.8% higher y-o-y as the group’s operational performance in ship chartering improved y-o-y although revenue from its shipyard segment fell marginally on a y-o-y basis.
Gross profit surged by 75.8% y-o-y to $11.6 million due mainly to the higher charter and utilisation rates of the group’s fleet of offshore supply vessels (OSVs). Gross profit margin (GPM) also surged by 12.1 percentage points y-o-y to 39.9%.
In the 1QFY2024, the ship chartering segment saw a 9 percentage point y-o-y growth in its average utilisation rates from higher average charter and utilisation rates for its OSVs. As such, its operating capacity stood at 70%. There was also increased rechartering of third-party vessels in 1QFY2024, significantly contributing to the group’s positive y-o-y revenue growth.
Revenue from the shipyard segment dipped from the lower ship repair volume following the competitive reopening of Chinese shipyards. The impact of lower ship repair revenues was mitigated by the sustained momentum in shipbuilding activities carried over from the previous quarter.
Looking ahead, the OSV market in Southeast Asia is expected to remain robust from high demand from offshore wind farms and the oil and gas industries. This is also expected to underpin higher average utilisation rates.
The group’s shipyard segment also looks positive as ship repair volumes are expected to pick up with the stabilisation of China’s reopening. Shipbuilding activities are also expected to continue their momentum.
“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,” says Sean Lee, CEO of Marco Polo Marine 5LY . “Despite minor headwinds in the shipyard segment, we are confident in our overall expansion strategy and expect a continued robust performance in the year ahead.”
Shares in Marco Polo Marine closed 0.2 cents lower or 3.57% down at 5.4 cents on Feb 8.
