- Marco Polo Marine (SGX:5LY) secured a S$198m contract to build a 4,000 gross tonne oceanographic research vessel for Taiwan National Academy of Marine Research at its Batam shipyard over 4 years. This is Marco Polo Marine’s largest shipbuilding order so far.
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S$198m shipbuilding contract – largest ever
- The S$198m contract represents a significant milestone for Marco Polo Marine’s shipbuilding operations and underscores its growing capabilities in specialised vessel construction. The vessel is designed by the renowned Norwegian firm Skipteknisk AS, a proven designer of similar research vessels, which will be built to dual class CR and ABS standards.
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Incremental to earnings from FY26E onwards.
- The vessel, which will be built over 4 years, will add roughly S$50m shipbuilding revenue annually and contribute about S$4m profit/pa for 4 years at an estimated 8% net margin. This represents an additional 13.2% earnings in FY26E and 11.7% in FY27E.
- This will likely also be the first of many to come if it can execute this successfully and continue to build its presence in Taiwan after first entering into its offshore windfarm chartering space, and now shipbuilding.
EPS growth likely to persist in FY27-30E
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