Marco Polo Marine - Maybank Research 2024-12-03: Exciting Times Ahead

• Going forward, we reckon that exciting times are just starting for Marco Polo Marine. Its CSOV is 91% completed and will likely start operating by March 25. We also expect utilisation for the first 2 years to be close to 95% with average rates of around US$50k/day. Charter rates are also expected to increase by 5-10% next year.
• - Read this at SGinvestors.io -

FY24 core profit of S$26.3m is in line with our forecast.

• Marco Polo Marine's FY24 revenue dipped 2.8% y-o-y to S$123.5m, mainly due to the drop in repair and maintenance revenue caused by the delay of its commissioning service operation vessel (CSOV). Excluding unrealized FX losses from outstanding receivables and a S$1.7m one-off provision for its CSOV delay, core PATMI would have risen 4.4% to S$26.3m.
• - Read this at SGinvestors.io -

CSOV completion on track for end-Jan 2025

• The CSOV delay led to fewer 3rd-party repair works in 3QFY24, which also caused a shortage of staff to work on 3rd-party repairs. These issues have been resolved and utilisation of its repair capacity has risen from 50% to about 75%.
• We also expect more volume driven by expansion of its 4th dry dock, which could see Marco Polo Marine's revenue rise 25% (with revenue recognition from Apr-25 onwards).

All engines starting to fire for FY25E

• Read more at SGinvestors.io.

Jarick Seet Maybank Research | https://www.maybank.com/ 2024-12-03

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