Marco Polo Marine FY2025 Results: Net Profit Surges 170%, Major Contracts and Growth Drivers Unveiled

Key Financial Highlights

• Net profit attributable to shareholders soared 169.7% year-on-year to S\$58.5 million, driven by strong operational performance and significant extraordinary gains.
• Gross profit rose 11.8% y-o-y to S\$54.2 million, with gross profit margin improving to 44.1% (up from 39.3%).
• EBITDA increased 17.3% y-o-y to S\$50.1 million, reflecting robust core business profitability and operational resilience.
• Revenue was marginally lower at S\$122.8 million (down 0.6%) due to a dip in shipyard revenues, offset by strong growth in ship chartering.
• Cash and cash equivalents at year-end were S\$52.2 million, indicating healthy liquidity despite lower cash levels compared to FY2024.
• Dividend payout to increase by 50% to 0.15 cents per share, a potential catalyst for share price appreciation.
• Net asset value per share rose to 7.0 Singapore cents (from 5.4 cents).
• Basic and diluted EPS jumped 169% to 1.56 Singapore cents (from 0.58 cents).

Extraordinary Gains and Adjusted Results

• The record net profit was bolstered by extraordinary, non-recurring gains:
  • S\$22.4 million reversal of impairment loss on certain vessels
  • S\$5.9 million reversal of impairment loss on an amount due from a joint venture
• Excluding these items and other non-core effects, adjusted net profit was S\$25.2 million, slightly lower than S\$26.3 million in FY2024.
• EBITDA growth indicates strong underlying operational performance, even as adjusted net profit dipped marginally.

Segmental Performance

• Ship Chartering Operations:
  • Revenue grew 11.5% to S\$80.2 million, driven by fleet expansion, including the deployment of the first CSOV (“MP Wind Archer”) and three new Crew Transfer Vessels (CTVs).
  • Average fleet utilisation improved to 71% (77% in 4QFY2025), up from 68% in FY2024.
• Ship Building & Repair Operations (Shipyard):
  • Revenue fell 17.4% to S\$42.6 million due to fewer third-party shipbuilding contracts, partially offset by more higher-value ship repair projects.
  • Shipyard utilisation for repair averaged 83% (87% in 4QFY2025), boosted by the launch of the fourth dry dock in August 2025.

Strategic Developments and Outlook

• Order Book Strength: Ship Chartering segment’s order book stands at approximately S\$100 million (as of June 2025), providing revenue visibility for the next three years.
• OSV Fleet Expansion: Acquisition of two new Anchor Handling Tug Supply (AHTS) vessels announced, expected to join the fleet in 2026.
• Offshore Wind Market: The Group’s pivot to offshore wind energy is a major growth driver. Its first CSOV is performing well, and its 49%-owned subsidiary, PKR Offshore Co. Ltd, will pursue a strategic listing in Taiwan to fund further fleet expansion.
• Landmark Contract Win: In November 2025, Marco Polo Marine secured its largest-ever contract — an approximately S\$198 million deal from Taiwan’s National Academy of Marine Research (NAMR) for the design and construction of a 4,000-tonne oceanographic research vessel. This represents a strategic entry into high-value, specialised vessel construction.
• Shipyard Expansion: The launch of the fourth dry dock and a three-year master service agreement with Cyan Renewables to service offshore wind vessels signal growth in ship repair and maintenance operations, and a deeper footprint in the renewables supply chain.
• Next-Generation Vessel Collaboration: Partnership with Salt Ship Design to build the ‘CSOV Plus’, a versatile vessel for both offshore wind and oil & gas, with delivery targeted for 2028. The vessel will be owned and operated by PKR Offshore Co. Ltd, expected to further boost chartering revenue.

Shareholder Considerations & Potential Price-Sensitive Factors

• Dividend Increase: 50% rise in dividend payout may enhance shareholder returns and potentially drive share price appreciation.
• Exceptional Gains: The extraordinary reversal of impairments contributed heavily to profit growth. Investors should note these are non-recurring.
• Major Contract Wins & Strategic Partnerships: The S\$198 million NAMR contract and the Cyan Renewables service agreement represent substantial future revenue and strategic market positioning in high-growth segments.
• Fleet Expansion & Wind Market Pivot: Ongoing investments and market expansion, including the Taiwan listing plan, could materially impact future earnings and share value.
• Strong Financial Position: With a robust balance sheet and S\$52.2 million in cash, the Group is well-placed for further strategic initiatives and possible M&A activity.

Management Commentary

“We are pleased to report a solid set of results for FY2025, highlighted by the notable improvement in gross profit and the successful completion of key projects initiated in recent years. While this year’s net profit was boosted by several exceptional gains, our underlying operational performance remains strong. Our robust financial position provides us with the flexibility to pursue strategic growth opportunities in the renewable energy sector and consistently deliver sustainable value for our shareholders. Looking ahead, we expect to see further improvements in our financial results as our recent initiatives will deliver impact across the entirety of FY2026.” – Sean Lee, Chief Executive Officer

About Marco Polo Marine

Marco Polo Marine Ltd, listed on SGX-ST since 2007, is a leading regional integrated marine logistics company. Its core businesses include the chartering of Offshore Supply Vessels (OSVs) and the operation of a modern shipyard in Batam, Indonesia. The Group is strategically diversifying into supporting offshore wind farm projects, positioning itself for growth in Asia’s nascent wind energy sector.

The Batam shipyard, spanning 34 hectares with four dry docks, is geared for mid-sized and sophisticated vessel projects, enhancing Marco Polo Marine’s technical capabilities and service offerings.

Investor Relations Contact

Emily Choo
Email: [email protected]

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information herein is based on public disclosures from Marco Polo Marine Ltd and may include forward-looking statements subject to risks and uncertainties.

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