Marco Polo Marine Q3 revenue up 140% on shipyard, ship chartering growth

Gross profit rose 185.3 per cent to $9.7 million, up from $3.4 million previously. PHOTO: MARCO POLO MARINE

SINGAPORE (THE BUSINESS TIMES) - Integrated marine logistics company Marco Polo Marine saw its revenue surge 139.5 per cent year on year for the third quarter ended June 30.

This comes on the back of more ship repair activities, stronger demand from end customers and an increase in capacity following the completion of extension works on its Dry Dock 1 in the second quarter of 2022.

Gross profit rose 185.3 per cent to $9.7 million, up from $3.4 million previously, as both the shipyard and ship chartering segments experienced "tremendous growth", the group noted in a business update on Thursday (Aug 18).

"During the quarter, the group also observed a growth in market share due to an increase in demand. The group's shipyard was operating at near full capacity at an average utilisation rate of 86 per cent in Q3 2022," it added.

For the ship chartering segment, demand for vessels remains strong, driven by both the oil and gas and offshore windfarm sector, the group said.

The jump in revenue was also due to a significant increase in average charter rates and a rise in average utilisation rates for vessels, as well as consolidation of revenue from Indonesian shipping agency company Pelayaran Nasional Bina Buana Raya and Taiwan-based offshore renewables service firm PKR Offshore - in which the group holds a 70.7 per cent and 49 per cent stake respectively.

The group expects a strong finish to the year on the back of rising demand from end customers for both the shipyard and ship chartering segments, the filing noted.

This is the first quarter where contributions from recent acquisitions have positively impacted the group's top and bottom lines, according to Marco Polo Marine chief executive officer Sean Lee.

"The offshore windfarm sector continues to present tremendous opportunities for the group," he said. 

By tapping the group's proven track record, it is looking to "expand both its geographical presence and services provided for the offshore windfarm sector", he added.

The company's shares jumped 6.5 per cent after the market opened on Friday, and were trading up 0.1 cent, or 3.2 per cent, at 3.2 cents at 9.23am.

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