Marco Polo Marine plunges further into the red with Q3 net loss of $304m

SINGAPORE - Struggling shipping services firm Marco Polo Marine saw widening losses in the third quarter, posting a $304.2 million net loss for the three months ended June 30, from a $6.4 million net loss the year before.

Revenue stayed relatively flat year-on-year, at $9.1 million .

The ailing company has suspended trading of its shares since May 2017, as a debt refinancing and restructuring plan got underway.

Marco Polo Marine said it is in advance negotiations with potential investors to raise fresh funding.

"The long-term prospects of the group, in particular, its ability to continue its business and operations in the next 12 months, are dependent on the ability of the group to achieve a successful refinancing and debt restructuring," it added.

But the board of directors noted that there is no assurance that the group may successfully complete its refinancing exercise or raise enough fresh funds to sustain operations for the next 12 months - especially with the gloomy outlook for the oil and gas and marine industries.

Loss per share stood at 91.81 cents, against 2.23 cents in the same period a year ago, while net liability value per share amounted to 44.8 cents.

Marco Polo Marine draws its revenue from two key segments - ship chartering and ship building and repair.

While it has improved utilisation of its tugboat and barge fleet, the gain in turnover was offset by a decline in dry-dock and repair jobs.

It noted that there is nothing due from customers in the present quarter, with net liabilities having ballooned to $150.8 million against assets of $158.8 million as at Sept 30, 2016.