Marco Polo Marine (5LY) H1 2025 earnings summary

Executive summary

• 1HFY2025 revenue fell 14.4% YoY to S$52.7m; net profit attributable to owners declined 3.4% to S$10.6m, while gross margin rose to 41.3%.

• Lower third-party vessel rechartering and fewer shipbuilding projects reduced revenue, while improved fleet utilisation and stronger 2HFY2025 contributions from new vessels and the fourth drydock support the outlook.

Financial highlights

• Gross profit was S$21.6m versus S$22.2m; EBITDA was S$15.4m versus S$18.8m, down 17.8%.

• Reported net profit was S$9.2m versus S$12.0m; adjusted net profit attributable to owners, excluding FX losses and one-off PPE disposal gains, was S$9.6m versus S$11.1m, down 13.7%.

• Operating profit was S$10.7m versus S$13.2m, down 19%; profit before tax fell 25% to S$10.0m. Basic and diluted EPS were 0.28 Singapore cents versus 0.29 cents.

• Operating cash flow rose to S$19.0m from S$15.3m, attributed to improved working capital management.

Outlook and guidance

• Stronger 2HFY2025 performance is expected, with more pronounced benefits from new vessel capacity in FY2026.

• The CSOV and three new Taiwan CTVs are expected to contribute from 3QFY2025; lower Taiwan third-party vessel rechartering demand is expected to persist through FY2025.

• The fourth Batam drydock was expected to complete in May 2025, supporting ship-repair revenue growth from 2HFY2025, with fuller impact in FY2026.

• Shipbuilding activity is expected to moderate as progressive deliveries are completed in 2HFY2025.