INTEGRATED marine logistics company Marco Polo Marine posted a 2.6 per cent rise in gross profit to S$14.6 million for the third quarter ended Jun 30, 2024, from S$14.2 million over the same period a year ago.
This was despite a 4.6 per cent decline in revenue to S$34.9 million, from S$36.8 million a year earlier.
In a business update on Thursday (Aug 22), the company attributed the lower revenue figures to capacity limitations with its shipyard segment.
As one of its three dry docks was fully utilised to construct its Commissioning Service Operation Vessel (CSOV), the company was unable to take on third-party jobs.
Furthermore, Marco Polo Marine said the delivery of the CSOV will be delayed by about four months, which could lead its client, Vestas Taiwan, to activate the liquidated damages (LD) clause in its charter contract.
“However, after considering the potential financial impact of the LD, the group does not anticipate a material impact on its net profit attributable to owners for the financial year ending Sep 30, 2024,” it said.
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Meanwhile, the company noted that a favourable supply-demand environment helped it command higher charter rates for its Offshore Support Vessels (OSVs).
It said its ship chartering segment “performed well” despite a six-percentage-point decline in average fleet utilisation rates to 86 per cent, from 92 per cent a year earlier.
“The current 86 per cent (utilisation rate) reflects a more typical operating level for the Q3 financial period,” the company said.
“Additionally, the group’s asset-light strategy of rechartering third-party vessels also enhanced this segment’s overall operating performance,” it added.
In the near term, the company said that it remains positive on its near-term outlook within the OSV market.
Furthermore, it said that growing investments in clean energy projects could positively impact the group’s fleet of offshore vessels.
“The offshore oil and gas market is also anticipated to remain tight in the foreseeable future due to rising demand that is not sufficiently met by vessel availability,” it said.
Shares of Marco Polo Marine closed up 3.9 per cent or S$0.002 at S$0.054 on Thursday, before the business update was released.
