Marco Polo Marine has recorded a 11% y-o-y decline in its revenue for the 1QFY2025 ended Dec 31, 2024 of $25.8 million, following lower revenues from both its core ship chartering and shipyard segments.
As such, the group’s gross profit dropped 9% y-o-y for the reporting period to $10.6 million, while gross profit margin improved by 1.1 percentage points (ppts) y-o-y.
In its ship chartering business, revenue decreased by 13% y-o-y mainly due to lower third party chartering income from Taiwan. This decrease was partially offset by higher charter rates of utilised vessels and marginal improvement of 1 ppt in average fleet utilisation.
The group says that the decline in demand for the re-chartering of third-party vessels in Taiwan is expected to persist through the rest of 1QFY2025.
Revenue from shipyard decreased 9% y-o-y due to a decline in ship building activities. This was offset by an increase in ship repair projects that saw yard utilisation rates improve by 4 ppts to 83%.
Strong momentum in average utilisation rates of the group’s shipyard for ship repair services in 1QFY2025 is anticipated to persist through FY2025.
In Feb, Marco Polo expects to see the completion of Commissioning Service Operation Vessel (CSOV) and Drydock 4, and the acquisition of three Crew Transfer Vessels (CTVs). The group anticipates these assets to start contributing positively to the group’s financial performance from 2HFY2025 onwards.
“Although revenue declined in 1QFY2025, the group’s performance remains within our expectations for the period. We look forward to 2HFY2025, where we will start to see the benefits of our investments from the past two years, and their full contributions from FY2026 onwards,” said Sean Lee, CEO of Marco Polo Marine .
Shares in Marco Polo Marine closed 0.2 cents lower or 3.571% down at 5.4 cents on Feb 14.
