Integrated marine logistics company Marco Polo Marine has recorded a y-o-y improvement in its 1QFY2021 ended Dec 31 2021.
This follows y-o-y growth in its revenue and gross profit that were driven by both its shipyard and ship chartering segments, the group announced in a voluntary business update on Feb 21.
Shipyard operations grew on the back of higher ship repair and ship building activities.
The segment is slated to see rake in stronger performance following the extension of the Dry Dock 1 from 150m to 240m, which was completed in February.
With a utilization rate of around 80% across its three dry docks, Marco Polo Marine is looking to see a 20% increase in its ship repair capacity from 2QFY2021 ending in March.
Meanwhile, the group’s ship chartering segment has been seeing strong demand from the oil and gas and offshore windfarm sectors.
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This, together with higher charter rates has pushed Marco Polo Marine’s ship chartering revenue up y-o-y.
Going forward, the group says it is “cautiously optimistic” of its prospects thanks to robust demand from end-customers as well as opportunities from its expansion into the burgeoning windfarm market.
Marco Polo Marine has also ventured into Green Ship Recycling after its shipyard in Indonesia was certified and awarded ISO 30000:2009 BY ABS Quality Evaluations.
This will expand the group’s shipyard services beyond ship repair and shipbuilding and in turn, contribute positively to its performance in FY2022 and beyond.
As part of efforts under its ship chartering segment, the group deepened its push into the Taiwan offshore windfarm sector through the acquisition of the Taiwan-based PKR offshore, under its joint venture company.
The move is expected to boost the group’s presence in Taiwan and add two Offshore Service Vehicles (OSVs), bringing its total fleet size to 13 OSVs.
Of this, four vessels will service the offshore windfarm sector in Taiwan.
“[Marco Polo Marine] will continue to expand our operations and service offerings in line with industry needs, while keeping a close tab on costs and cashflow,” says CEO, Sean Lee.
“With the world placing an increasing emphasis on environmental sustainability, we are well-positioned to capitalise on the demand for green ship recycling and offshore wind farm installations,” he adds.
As at 12.33pm on Feb 21, shares in Marco Polo Marine were down 0.1 cents or 3.44% at 2.8 cents.
Cover image of Marco Polo Marine CEO Sean Lee: Albert Chua/The Edge Singapore
