Marco Polo Marine - RHB Invest 2023-08-24: Vessel Demand Remains Firm; Maintain BUY

• We stay upbeat on Marco Polo Marine as 3Q23 revenue and margins validate that the outlook continues to trend in the right direction.
• Marco Polo Marine remains in a sweet spot to deploy and operate its first commissioning service operation vessel (CSOV) in FY24, in an environment where such vessels (used to build offshore windfarms) are in short supply.
• - Read this at SGinvestors.io -
• Maintain BUY on Marco Polo Marine with S$0.06 target price, 37% upside from the current Marco Polo Marine's share price.

Growth led by better chartering utilisation and rates.

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• Supplementing the offshore windfarm sector’s growth in ship chartering would be higher demand for offshore vessels in the oil and gas (O&G) sector. With increasing regional O&G exploration against tight supply for vessels, both utilisation and rates should further support growth.
• Marco Polo Marine’s shipyard is also currently operating at close to full capacity. Productivity and expansion can further support growth.

Minimal risks to Marco Polo Marine’s windfarm charter demand

• Read more at SGinvestors.io.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2023-08-24 SGinvestors.io

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