Profit at growing offshore and renewables company Marco Polo Marine more than doubled on the back of strengthening charter markets.
The Singapore-listed company reported net income of SGD 12m ($8.8m) for the six months to 31 March, up from SGD 5.8m a year earlier.
Revenue grew 10% year-on-year in the first half to SGD 61.6m largely due to the strong performance of its ship chartering segment.
Marco Polo said it was able to achieve higher charter rates for its offshore fleet than a year earlier.
“The segment witnessed a credible 34.3% year-on-year revenue growth from SGD 24.5m in the first half of 2023 to SGD 32.9m in the first half of this year, attributable to higher charter rates achieved for its fleet of offshore supply vessels,” it said.
“The group has also benefited from its asset-light approach of chartering in third-party OSVs, which are subsequently rechartered at higher rates to various short-term offshore projects.”
In contrast, revenue at the group’s shipyard segment declined by 8.6% year-on-year to SGD 28.7m as a result of lower ship repair volume. This was partly offset by higher shipbuilding-related activities.
Despite this, Marco Polo said the outlook remains positive for its shipyard segment, as it foresees ship repair volumes picking up following China’s reopening.
It also confirmed that preliminary work has begun on a fourth dry dock, plans for which were announced last September.
“Our first-half results of 2024 reflect the fruits of our focused strategy as we continue to operate in a volatile offshore oil market,” said chief executive Sean Lee.
“Our proactive adjustments in both the traditional and renewables sectors align well with industry demands, setting us on a solid path for sustained growth in the coming years.”
Despite significant geopolitical challenges, including tensions in the Taiwan Strait, the company said it remains “poised for continued growth”.
“While there was some temporary weakness seen in its vessel utilisation rates in the first half of 2024 due to timing factors relating to project deployment, this was more than offset by a 17% year-on-year growth seen in the group’s charter rates,” it added.
“The group expects robust demand amid a still-tight supply environment for OSVs to support both utilisation and charter rates of its vessels in the coming quarters.
“Additionally, the recent Asia Pacific CTV [crew transfer vessel] framework agreement with Siemens Gamesa reinforces the group’s commitment to expanding its presence in the renewable energy sector, thereby enhancing the strategic positioning of its ship chartering segment.”
