Marco Polo Marine 5LY has reported revenue of $23.7 million for the 1QFY2023 ended Dec 31, 2022, 95.9% higher y-o-y.
The higher revenue was attributable to the group’s shipyard and chartering segments' continuous growth.
1QFY2023 gross profit surged by 153.8% y-o-y or nearly 2.5 times higher to $6.6 million with gross profit margin (GPM) improving by 6.5 percentage points y-o-y to 28.5%.
During the quarter, shipyard revenue rose on a y-o-y basis due to the full quarter’s contribution from the extended capacity of Dry Dock 1. The extension, which was completed in the 2QFY2022, resulted in a higher volume of ship repair activities, larger customer contracts, as well as the commencement of new shipbuilding projects during the period.
The group adds that it saw growth in its regional market share and stronger demand for the installation of ballast water systems.
The average utilisation rate at the group’s shipyard fell by 4 percentage points y-o-y to 74% during the quarter despite the increase in its capacity for ship repairs.
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Marco Polo Marine’s ship chartering segment saw revenue increase on a y-o-y basis due to higher average charter rates, an increase in average utilisation rates for its vessels and consolidation of revenue from the group’s 70.7%-owned PT BBR and 49%-owned PKRO.
The group adds that the growth from the segment came as demand for Marco Polo Marine’s vessels remained strong on the back of interest from both the oil and gas and offshore windfarm sector.
Looking ahead, the group says it remains optimistic about its prospects for the year ahead, adding that it expects to see “continued growth” from the rising demand from its end customers for both of its segments.
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The group foresees its 1HFY2023 revenue for its shipyard segment to continue to benefit from a higher capacity for ship repairs as well as continued demand for the installation of ballast water systems. It adds that it targets to secure more shipbuilding projects in the FY2023.
The Group is also in talks with potential joint venture partners for its Commissioning Service Operation Vessel (CSOV), which is targeted to be completed by 1QFY2024.
In addition, average charter rates and utilisation rates are expected to remain “robust” on the back of the strong demand from the offshore wind farm and oil & gas industries.
“We started the year strong, both financially and operationally, as we continued to experience robust demand in our shipyard and ship chartering segments,” says Sean Lee, CEO of Marco Polo Marine.
“The offshore windfarm 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 geographical presence and develops specialised services to target the offshore windfarm sector,” he adds.
Shares in Marco Polo Marine closed flat at 4.3 cents on Feb 15.
