Marco Polo Marine 5LY has announced earnings of $4.2 million for its 1HFY2023 ended March 31, 61% down from its earnings of $10.8 million from the same period last year.
This decrease in earnings comes even as the group doubled its revenue for the period to $55.9 million, from $27.6 million in 1HFY2022.
Cost of sales increased at a similar rate, from $19.5 million in 1HFY2022 to $38.2 million in 1HFY2023.
Gross profit for 1HFY2023 also improved by 116% to $17.7 million, with Marco Polo Marine’s gross profit margin staying relatively flat at 31.6%, 2 percentage points up from 1HFY2022.
Excluding foreign exchange losses, reversal of impairment loss on receivables, one-off items arising from the remeasurement of previously held equity interest, bargain purchase and acquisition of debt and the disposal of a vessel, the group’s adjusted net profit to owners came to $8.5 million for the period, up 372% compared to the $1.8 million in 1HFY2022.
As at March 31, the group’s cash and cash equivalents stood at $53.0 million.
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No dividend has been declared or recommended for the six-month period.
Marco Polo Marine’s revenue growth was driven by higher contract values for ship repair jobs and increased revenue from shipbuilding activities.
To maintain competitiveness in the complex geopolitical and economic environment, the group says it will focus on boosting operational efficiency and implementing cost reduction measures, while continuing to progress its activities in the renewable energy sector as it develops on the progress made in the last couple of years.
In the ship chartering business, support will be maintained for the Taiwan offshore wind farm market through the joint venture Oceanic Crown Offshore Marine Services Ltd. and the acquisition of PKR Offshore Co.
The group says it anticipates increased demand for its fleet of offshore vessels in alignment with the expected upswing in oil and gas activities.
Meanwhile, in the shipyard division, Marco Polo Marine says it is working towards securing ship repair and maintenance orders by increasing its customer base internationally.
To date, several new build contracts for the construction of barges have already been secured and are in the process of being delivered up until 1HFY2024. The construction of the group’s commissioning service operation vessel is at 13% completion, with a forecast delivery date in the first quarter of 2024.
CEO Sean Lee says: “Our ship chartering and shipyard operations experienced strong growth
due to increased demand and also as a result of the group’s expansion plans. The offshore wind farm sector continues to present vast potential for the group.
“We are seeing that this positive momentum will continue into the second half of 2023 and beyond, while delivering sustainable growth and value to our stakeholders,” adds Lee.
Shares in Marco Polo Marine close 0.1 cents or 2.17% down at 4.5 cents on May 11.
