Marco Polo Marine also announced, on Sept 8, that it has commissioned Norwegian ship designer Salt Ship Design to design its next-generation commissioning service operation vessel (CSOV).
Unlike standard CSOVs and construction support vessels with retrofitted walk-to-work systems, Marco Polo Marine’s latest vessel will be the first purpose-built CSOV that’s designed from the keel up for the offshore wind and oil and gas sectors.
To Cheong and Mo, the active fleet expansion reflects Marco Polo Marine’s confidence in growing its future order book. As of June 30, the company has a ship chartering order book of $100 million, with secured contracts spanning the next three years.
“This strong backlog reflects Marco Polo Marine’s diverse fleet deployment across high-growth sectors, including offshore oil & gas and renewable wind energy,” the analysts write in their Oct 2 note.
They add that the second CSOV, which is expected to be completed in 2028, could contribute more than US$6 million per annum, based on a conservative estimate.
Cheong and Mo’s target price is based on an FY2026 P/E of 11.3 times or 2 standard deviations (s.d.) above Marco Polo Marine’s historical three-year P/E range.
“With robust sector tailwinds, a healthy balance sheet (net asset value or NAV of $210 million or 5.6 cents/share), and clear growth catalysts, we believe Marco Polo Marine is well-positioned to deliver sustained earnings growth and offers re-rating potential,” the analysts add.
As at 12.34pm, shares in Marco Polo Marine are trading 0.2 cents higher or 2.67% up at 7.7 cents.
