Marco Polo Marine has reported gross profit of $14.6 million for the 3QFY2024 ended June 30, up 2.6% y-o-y from $14.2 million in 3QFY2023.
This came alongside a 3.1 percentage point (ppt) expansion in gross profit margin, standing at 41.8% in 3QFY2024 from 38.7% from the same period last year.
Gross profit for the 9MFY2024 rose by 15.4% y-o-y to $36.8 million while gross profit margin for the period increased by 3.8 ppts to 38.2%.
The group's revenue for 3QFY2024 decreased by 4.6% y-o-y to $34.9 million, compared to $36.8 million in 3QFY2023.
This came on the back of lower revenue from its shipyard segment, due to the full utilisation of one of the group’s three dry docks in the construction of its commissioning service operation vessel (CSOV) which made it unavailable to take on third-party jobs.
Revenue for the 9MFY2024 was up by 4% y-o-y to $96.5 million.
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As the delivery of the CSOV is expected to be delayed by approximately four months, Marco Polo Marine 5LY says it anticipates potential activation of the liquidated damages clause from the charter contract signed between Vestas Taiwan Co., Ltd and the Group's Taiwan-based subsidiary, PKR Offshore Co., Ltd.
Despite this, the group says that it does not expect a “material impact” on its net profit attributable to owners for the financial year ending 30 September 2024.
Nonetheless, the segment saw strong utilisation rates, up 3.0 ppt y-o-y to 96% in 3QFY2024.
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Meanwhile, the group’s ship chartering segment “performed well” despite seeing a 6.0 ppt y-o-y decline in average fleet utilisation rates to 86% in 3QFY2024 from 92% in 3QFY2023.
The segment’s operating performance was driven by higher charter rates secured by its fleet of offshore support vessels (OSVs) due to a favourable supply-demand environment.
Moving forward, the group remains positive of its near term outlook within the OSV market.
The group anticipates rising demand amid a tight supply for offshore and gas supply vessel, which is expected to sustain high charter rates for Marco Polo Marine’s fleet of OSVs.
To this, Sean Lee, CEO of Marco Polo Marine says: “We are encouraged by the strong performance in our ship chartering segment, driven by higher charter rates and favourable market conditions.”
Additionally, the group has recently commenced the construction of its fourth dry dock in May 2024, which will be funded through a combination of operational cash flows and external financing from banks.
The project is expected to be completed by February 2025 and with its addition contributing to the group's revenue and profits by the second quarter of FY2025.
Shares in Marco Polo Marine closed at 0.2 cents higher or up 3.85% at 5.4 cents.
