Marco Polo Marine - Navigating growth and transformation
Stocks
By Gerald Wong, CFA • 26 Feb 2025
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Marco Polo Marine's Commissioning Service Operation Vessel (CSOV) is scheduled to begin its charter in the first half of FY2025, further expanding the company's capabilities in the offshore wind market in Asia.

An integrated marine logistics company with shipping and shipyard operations
Established in 1991 and listed in Singapore since 2007, Marco Polo Marine operates a shipping business, chartering Offshore Support Vessels (OSVs) for use in regional waters and a shipyard business, providing shipbuilding maintenance, repair, outfitting, and conversion services through its shipyard in Batam, Indonesia.
The debt restructuring exercise in 2017 marked a significant turning point for the company, following which it has continued on a path of continued transformation to pivot into new target markets and reposition the company for future growth.

Favourable demand-supply balance in ship-chartering
Marco Polo Marine has seen a steady increase in ship chartering revenues over the last five years, from S$13.6 mn in FY2020 to S$71.9 mn in FY2024, representing a robust Compound Average Growth Rate (CAGR) of 39.5%.
Recently, Marco Polo Marine secured the Asia-Pacific Crew Transfer Vessel (CTV) framework agreement with Siemens Gamesa for projects spanning Taiwan and Korea.
This strategic agreement is a step towards strengthening the Group’s foothold in the offshore wind market beyond Taiwan.
Its Battery Hybrid Commissioning Service Operation Vessel (CSOV) is also scheduled to begin its charter in the first half of FY2025, further expanding the group’s service capabilities in this high-growth sector.

Pick-up in shipyard operations with new dry dock in 2025
Despite maintaining high utilisation across the dry docks, as one of the three docks was allocated exclusively to the CSOV construction from May to August 2024, effectively reducing the Group’s capacity for revenue-generating ship repair projects.
In anticipation of higher demand, Marco Polo Marine has commenced construction on a fourth dry dock to meet the rising demand for ship repair services.
Scheduled for completion in 1HFY2025, this new capacity will enable the group to capture additional repair opportunities as activity in the shipping sector continues to recover.

Healthy net cash balance sheet as at FY24
Since its balance sheet restructuring in FY2017, Marco Polo Marine has consistently maintained a net cash balance sheet, most recently having a net cash balance of S$34.9 mn as at FY2024.
In FY2024, the group achieved an adjusted net profit of S$26.3mn, a 4.4% year-on-year growth, despite a 2.8% decline in revenue to S$123.5mn.
This was driven by strong Ship Chartering operations but offset by weaker Shipyard operations.

Key risks
Earnings are susceptible to the cyclical nature of the offshore & marine market. Geopolitical instability may also affect the regional nature of its operations.
Given high operating leverage, fluctuations in charter rates and utilisation rates due to market dynamics may create earnings volatility.
With a new CSOV to be commissioned, there may be execution risks associated with a new vessel deployment.
Trading at 9x P/E
Marco Polo Marine trades at 9.2x P/E, compared to the Singapore offshore & marine peer average of 18.0x.
Seatrium, formed from the merger of Keppel’s Offshore & Marine division and Sembcorp Marine is by far the largest offshore and marine company on the SGX with a market cap of S$7.3 bn; although differing underlying market dynamics and the position of the company along the offshore & marine value chain may render the companies less comparable across the board.
Read also:
We want to be an offshore wind leader in Asia: Marco Polo Marine’s CEO
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