- We think the worst is over for Marco Polo Marine and FY26E should be a fruitful year as we believe that longer-term charters will be secured to avoid the gaps in utilisation occurring in FY25.
- - Read this at SGinvestors.io -
Lower utilisation rate hits profitability.
- Marco Polo Marine’s revenue dropped 9% y-o-y to S$31.7m but GPM improved to 44% from 42%. Ship chartering revenue fell 4% y-o-y to S$22.2m, mainly due to lower 3rd party chartering from Taiwan and a lower utilisation rate of 71% vs 86% a year ago, but still up from 2Q’s 65%.
- We expect utilisation for 4Q to be the same or slightly better than 3Q which is positive as 3Q is usually seasonally the strongest quarter.
Charter rates continue to rise.
- - Read this at SGinvestors.io -
- We expect charter rates to rise steadily over the next 1-2 years.
Laggard play - Deep discount to RNAV.
- Read more at SGinvestors.io.
