Marco Polo Marine - RHB Invest 2024-05-27: Firm Outlook Ahead; Maintain BUY

• We are upbeat on Marco Polo Marine (SGX:5LY) as we remain positive on growth prospects going forward.
• Marco Polo Marine’s new Commissioning Service Operation vessel (CSOV) is due to be deployed in FY25F, and with construction of offshore windfarms in growing demand, we are positive on the vessels’ strong utilisation and charter rate growth driven by CSOV.
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1HFY24 in line.

• Marco Polo Marine reported 1HFY24 revenue of S$62m (+10% y-o-y) and net profit of S$12m (+106%), which are within our estimates, Revenue was mainly driven by higher charter rates in the ship chartering segment (S$33m, +34% y-o-y). Average charter rates grew 17% y-o-y, while average utilisation rates softened to 60% due to timing issues in temporal project deployment.
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Firm outlook ahead.

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Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-05-27 SGinvestors.io

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