Marco Polo Marine posts $8.2m net loss

The worsening bottom line came despite an 8 per cent rise in revenue to $12.8 million.
The worsening bottom line came despite an 8 per cent rise in revenue to $12.8 million.PHOTO: MARCO POLO MARINE

Financially ailing marine logistics company Marco Polo Marine has sunk deeper into the red in its latest financial results, even as it struggles to restructure its debt.

In a separate announcement yesterday, Marco Polo said it would be holding informal talks with some bond holders on Thursday.

The meeting involves investors holding Series 001 $50 million 5.75 per cent bonds due in 2016.

The meeting is being moderated by the Securities Investors Association (Singapore) and will be held at the Capital Tower in Robinson Road.

Marco Polo indicated earlier this month that it was meeting some resistance from bankers as it sought to restructure its debt.

In its second-quarter financial results released yesterday, the company posted an $8.2 million net loss, from a $1.2 million net loss a year earlier.

The worsening bottom line came despite an 8 per cent rise in revenue to $12.8 million.

For the first half of the year, the company posted a net loss of $4.8 million, from $1.1 million in the same period a year earlier.

Revenue dived 16 per cent to $24.3 million.

Loss per share for the first half of the year was 1.42 cents, up from a loss per share of 0.33 cent in the previous financial year.

Net asset value per share was 46.1 cents as at March 31, down from 47.2 cents as at Sept 30.

One key factor that lifted second-quarter revenue was a 17 per cent jump in shipbuilding and repair operations to $8.7 million.

The company also gave an update on its efforts to restructure its debt, as well as a push to bring in new strategic investors.

It said "the company is not confident at this juncture that it would be able to eventually bridge the gap between the expectations of the lenders and the conditions set by the strategic investors as part of the proposed refinancing and debt restructuring".

Marco Polo added: "The group has also seen, in recent days, an increasing number of reservation-of-rights letters and demand letters, including a statutory demand, from creditors."

A version of this article appeared in the print edition of The Straits Times on May 15, 2017, with the headline 'Marco Polo Marine posts $8.2m net loss'. Print Edition | Subscribe