Marco Polo Marine’s gross profit up 2.6% to $14.6m in Q3

This was despite a 4.6% decline in revenue.

Marco Polo Marine has reported a gross profit of $14.6m in the third quarter of fiscal year 2024, which was 2.6% higher compared to the $14.2m in the same period last year.

In a regulatory filing, the company said an increase was recorded despite lower revenue, which was down 4.6% to $34.9m in Q3.

“The decline was due to lower revenue from its Shipyard segment, where one of its three dry docks was fully utilised for the construction of its commissioning service operation vessel [CSOV] and was unavailable to take on third-party jobs,” 

The Ship Chartering segment performed well despite a 6.0 ppt year-on-year decline in average fleet utilisation rates to 86% in Q3. Higher charter rates for Offshore Support Vessels and asset-light rechartering boosted the segment's performance.

Meanwhile, the Shipyard segment saw higher utilisation ay 96% but lower revenue due to CSOV construction. 

The delivery of the CSOV will be delayed by approximately four months. This may activate the liquidated damages clause from the Charter contract signed between Vestas Taiwan Co., Ltd and the Group's Taiwan-based subsidiary, PKR Offshore Co., Ltd., Marco Polo Marine said.

The company does not anticipate this to have a material impact on its net profit attributable to owners for the financial year ending 30 September 2024.

“We are encouraged by the strong performance in our ship chartering segment, driven by higher charter rates and favourable market conditions. Increasing global investments in clean energy, particularly in offshore wind, will provide strong revenue visibility for our newly constructed CSOV in the coming years,” said Marco Polo Marine CEO Sean Lee.

The company commenced the construction of its fourth dry dock in May 2024. This is expected to be completed in February 2025 and the addition of Dry Dock 4 is expected to contribute to the group's revenue and profits by the second quarter of fiscal year 2025.