Marco Polo Marine reports higher 1HFY2024 earnings on higher chartering rates

On the other hand, Marco Polo Marine's shipyard segment posted lower revenue

Marco Polo Marine has reported 1HFY2024 earnings of $11 million, up 159.4% y-o-y. Revenue in the same period was up 10% to $61.6 million.

Adjusted net profit, which excludes forex and one-offs, was up 30.6% y-o-y to $11.1 million.

The company attributes the better topline to its ship chartering segment, which enjoyed higher charter rates, underpinned by demand from offshore projects.

Revenue for this segment was up 34.3% y-o-y to $32.9 million.

On the other hand, its shipyard segment posted revenue of $28.7 million, down 8.6% y-o-y, as volume dropped.

“Our first-half results of 2024 reflect the fruits of our focused strategy as we continue to operate in a volatile offshore oil market,” says CEO Sean Lee.

“Our proactive adjustments in both the traditional and renewables sectors align well with industry demands, setting us on a solid path for sustained growth in the coming
years," he adds.

Marco Polo Marine says that despite ongoing geopolitical tensions, the company remains poised for "continued" growth.

The company expects robust demand from chartering amid a still-tight supply environment for offshore support vessels to support both utilisation and charter rates of its vessels in the coming quarters. 

In addition, a framework agreement signed recently with Siemens Gamesa reinforces Marco Polo Marine 5ly's commitment to expand in the renewable energy sector.

Elsewhere, its fourth dry dock, which began construction in September 2023, is scheduled to be fully completed in the half-year ending March 2025 and will enable it to take on more ship-repair projects.

Last but not least, the company's Commissioning Service Operation Vessel (CSOV) is around 69% complete as of March and is scheduled to commence operations in October and revenue to be recognised in the half year ending March 2025.