Marco Polo Marine (5LY) H2 2024 earnings summary

Executive summary

• FY2024 revenue was S$123.5m, down 2.8% YoY; gross profit rose 6.1% to S$48.5m and adjusted net profit to owners increased 4.4% to S$26.3m.

• Ship Chartering gains partly offset weaker Shipyard performance; the CSOV is scheduled to begin chartering in 1HFY2025.

Financial highlights

• FY2024 EBITDA was S$42.7m, down 1.4% YoY; net profit was S$23.9m, down 7.4%, and net profit to owners was S$21.7m, down 4.0%.

• 2HFY2024 revenue declined 12.9% YoY to S$62.0m; net profit to owners fell 41.5% to S$10.7m, while adjusted net profit to owners decreased 11.1% to S$15.2m.

• 2HFY2024 gross profit fell 6.1% to S$26.3m, while gross margin rose 3.1 percentage points to 42.4%.

Outlook and guidance

• Robust OSV demand from offshore wind and oil and gas is expected to support stable-to-higher average charter rates; Taiwan offshore wind demand is also expected to support rates in FY2025.

• The CSOV is expected to begin chartering and contribute revenue in 1HFY2025; barge projects are set for progressive delivery through 1HFY2025.

• Ship repair volumes are expected to increase with all three existing dry docks available from September 2024; the fourth dry dock is scheduled for completion in February 2025.