Marco Polo Marine (5LY) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 47.7% YoY to S$127.1m; EBITDA increased 78.9% to S$43.3m, the highest since the FY2017 debt restructuring.

• Adjusted net profit to owners rose 82.6% to S$25.2m; offshore renewables remained a strategic focus.

Financial highlights

• FY2023 gross profit increased 66.6% YoY to S$45.7m; net profit to owners was S$22.6m, up 5.8%, while reported net profit was S$25.8m, up 17.0%.

• Adjusted net profit to owners was S$25.2m versus S$13.8m in FY2022, excluding specified non-recurring items and FY2023 key-management profit-sharing incentives.

• 2HFY2023 revenue rose 21.8% YoY to S$71.2m and gross profit increased 45.3% to S$28.0m; reported net profit was S$19.9m, while net profit to owners was S$18.3m.

• 2HFY2023 adjusted net profit was S$17.1m, up 47.4% YoY.

Outlook and guidance

• FY2024 shipbuilding growth was supported by newly secured barge contracts scheduled for delivery through 2HFY2024; priorities included global ship repair and maintenance orders and Indonesian shipbuilding opportunities.

• CSOV construction was ~34% complete at 30 Sep 2023, with completion and operational commencement targeted for 2H2024; OSV utilisation was expected to remain robust and charter rates to rise at a more moderate pace.

• Ship chartering growth was expected to continue on Taiwan offshore wind activity and rising oil and gas activity, supporting higher OSV charter rates.