The delay led to fewer third party repair works in 3QFY2024, which also caused a shortage of staff to work on third party repairs. These issues, however, have been resolved and utilisation of its repair capacity has risen from 50% to about 75%, Seet adds.
“We also expect more volume driven by expansion of its fourth dry dock, which could see revenue rise 25%. The crew transfer vessels (CTVs) that it acquired are operational and will also help to boost profitability with rates expected at around US$8,000 per day,” he says.
Maybank expects MPM to add another one or two CTVs by end-2025, increasing its CTV fleet to up to five vessels.
MPM’s CSOV is close to completion and should sail to Taiwan by end-January 2025. Although issues may arise in the first six to eight months — potentially bringing down its initial utilisation rate — it should be smooth sailing by FY2026, says Seet.
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Maybank believes that the utilisation for the first two years will be close to 95%, with rates averaging around US$50,000 per day. This should make a significant contribution to its profitability, he further points out.
“FY2025 should be a good year for MPM as all engines will start firing. We think this is a good time to accumulate MPM with the outlook clear ahead,” he adds.
As at 2.53pm, shares in MPM are trading at an unchanged 5.3 cents.
