Marco Polo Marine - UOB Kay Hian 2024-05-28: 1HFY24 Earnings In Line, Charting A Path To Growth

• Marco Polo Marine registered 10% y-o-y and 31% y-o-y growth in 1HFY24 revenue and core PATMI respectively, both making up roughly 40% of our full-year estimates. This is in line with our expectations, given the monsoon season.
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• Marco Polo Marine continues to benefit from strong demand from the Taiwan offshore wind and O&G markets.

1HFY24 results in line with expectations.

• Marco Polo Marine (SGX:5LY) reported 1HFY24 revenue of S$62m (+10% y-o-y) and 1HFY24 core PATMI of S$11.1m (+30.6% y-o-y), both making up around 40% of our forecasts. This is in line with expectations as 1H typically registers a weaker performance due to the monsoon season.
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Ship chartering continues to drive growth, soaring 34.3% y-o-y to S$32.9m in 1HFY24.

• The segment was boosted by higher average charter rates for its OSV fleet, fuelled by increased demand for OSVs from both the offshore O&G and renewables sectors.
• Its third-party OSVs were also rechartered at higher rates for short-term offshore projects. This was offset by the dip in average vessel utilisation rate, from 66% in 1HFY23 to 60% in 1HFY24.

Despite revenue dip, shipyard segment expected to stabilise.

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Heidi Mo UOB Kay Hian Research | John Cheong UOB Kay Hian | https://research.uobkayhian.com/ 2024-05-28 SGinvestors.io

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