MARCO Polo Marine posted a lower net profit of S$10.7 million for the second half of its financial year ended Sep 30, 2024, down 41.5 per cent from S$18.3 million in the previous corresponding period.
This brings the integrated marine logistics company’s net profit for FY2024 to S$21.7 million, down slightly by 4 per cent from S$22.6 million in FY2023.
Revenue for H2 was down by 12.9 per cent at S$62 million, from S$71.2 million in H2 FY2023.
This brings its full year’s revenue to S$123.5 million, down 2.8 per cent from S$127.1 million in the previous financial year.
The lower full-year revenue came on the back of decreased contributions from its shipyard segment, which experienced declines in ship repair volumes and third-party shipbuilding activities.
Despite this, its shipyard operated at a higher average utilisation rate of 91 per cent in FY2024, versus 85 per cent in the previous financial year.
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Meanwhile, its ship chartering segment clocked higher revenue of S$71.9 million for FY2024, up 9.1 per cent on the year from S$65.9 million. This was despite the segment’s H2 revenue falling year on year by 5.8 per cent to S$39 million, from S$41.4 million in the previous corresponding period.
Higher charter rates and a favourable supply-demand environment, as well as the rechartering of third-party vessels at higher rates for short-term offshore projects, contributed to the growth of the ship chartering segment.
“Demand for offshore service vessels from the offshore oil and gas and renewable energy sectors continues to drive higher charter rates,” the company said.
For FY2024, the company had a net cash position of S$35.8 million, as at Sep 30, down 41.1 per cent from S$60.8 million for FY2023. Its net cash per share for FY2024 stood at S$0.009.
Its net asset value was at S$201.1 million for FY2024, up 9.4 per cent from S$183.9 million for FY2023. Its net asset value per share for FY2024 was S$0.054. This figure comprises its portfolio of tangible assets, including cash and property, plant, and equipment.
Marco Polo Marine expects its ship chartering segment to drive growth, as the tight supply-demand balance in the offshore market is “likely to drive demand for offshore service vessels, and support higher average charter rates”.
For its shipyard segment, the company anticipates that ship repair volumes will pick up and “return to normalcy” as its third dock is freed up at the end of August 2024.
Shares of Marco Polo Marine closed 3.9 per cent or S$0.002 higher at S$0.054 on Monday, before the news.
