Marco Polo Marine (5LY) H1 2024 earnings summary

Executive summary

• 1HFY2024 revenue rose 10.0% YoY to S$61.571m.

• Net profit was S$12.005m; profit attributable to owners rose to S$11.021m from S$4.249m, while adjusted net profit to owners increased 30.6% to S$11.1m.

• Ship chartering growth and sustained shipbuilding activity supported results; ship repair volumes were softer amid China shipyards reopening.

Financial highlights

• Gross profit rose 25.6% to S$22.221m; gross margin expanded to 36.1% from 31.6%.

• EBITDA increased 21.3% to S$18.8m; EBITDA margin rose to 30.5% from 27.7%.

• Operating profit rose 93.1% to S$13.224m; profit before tax was S$13.190m.

• Administrative expenses rose to S$8.2m, mainly due to higher performance-based bonuses and salaries; other operating expenses fell to S$3.3m as FX losses declined.

Outlook and guidance

• Robust OSV demand and tight supply are expected to support charter rates and vessel utilisation; offshore wind and oil and gas activity underpin demand.

• Ship repair volumes are expected to pick up as China’s reopening stabilises; barge construction and progressive deliveries are expected through 1HFY2025.

• Chartering typically performs more strongly in 2H than 1H due to monsoon seasonality.

• The fourth dry dock is scheduled for completion in 1HFY2025 to expand ship-repair capacity.