Offshore player Marco Polo Marine has reported a 17% rise in full-year net profit on the back of a strong performance in the second half of the year.

The Singapore-listed company posted a profit of SGD 25.8m ($19.3m) for the 12 months ended 30 September 2023 versus SGD 22m in the previous year.

Revenue for the 12 months was up 47.7% to SGD 127.1m, SGD 71.2m of which was recorded in the second half of the financial year.

Revenue from ship chartering increased by 47.4% year-on-year to SGD 65.9m, primarily due to the full consolidation of PT Bina Buana Raya and PKR Offshore’s results in the current financial year.

Revenue from shipyards increased by 47.8% year-on-year to SGD 61.2m due to higher contract values for this segment’s repair projects and the start of new shipbuilding projects in the current year.

“FY 2023 has been a year of significant growth for Marco Polo Marine,” chief executive Sean Lee said.

“Our ship chartering segment has achieved notable success, marked by increased fleet utilisation and strong growth in charter rates.

“Concurrently, our shipyard operations also delivered a commendable set of results, fuelled by valuable new contracts with higher project margins.

“These achievements underscore our effective expansion and collaborative efforts in the offshore marine industry, and we are also particularly excited about the progress we have made in the offshore wind farm sector,” he said.

Looking ahead, Marco Polo Marine said the offshore and shipping industries are currently facing challenges due to geopolitical instabilities.

“This includes ongoing tensions in the Taiwan Straits and South China Sea, the Russo-Ukrainian war and the recent Israel-Hamas skirmish,” it said.

“Amid these uncertainties beyond its control, the group is focused on improving operational efficiencies and cost management controls to boost its competitive edge. Additionally, it will continue to expand its involvement in the growing renewable energy sector.”

Marco Polo Marine said it anticipates the utilisation rate of its offshore support vessels to remain relatively robust amid positive demand-supply dynamics.

Concurrently, it said charter rates for OSVs are still expected to appreciate in the coming financial year, albeit at a more moderate pace compared to FY 2023.

In the shipyard division, the group said it remains focused on expanding its customer base globally to secure more ship repair and maintenance orders.

It said it is also actively engaging with local shipowners in Indonesia to step up its marketing efforts on the shipbuilding front.

Lee said the company also recognised the “significant growth potential” of renewable energy and remains committed to its strategy of pursuing opportunities in this field.

“Our CSOV is currently under construction at our Batam yard and will be completed in the second half of 2024,” he said.

“This CSOV will be our stepping stone to penetrate the high-growth Taiwan offshore wind sector, and we are excited to have secured the framework agreement with Vestas that will see our vessel being gainfully deployed over the next three years.”