Marco Polo Marine FY2025 Results: Net Profit Surges, Final Dividend of 0.15 Cent per Share Announced

Marco Polo Marine Ltd. FY2025 Financial Results: Strong Profit Surge Amid Fleet Expansion

Marco Polo Marine Ltd. has announced its unaudited condensed interim financial statements for the full year and six months ended 30 September 2025. The company, a key player in ship chartering, shipbuilding, and repair services, delivered a robust performance, driven by strategic fleet expansion and operational improvements. Below is a structured analysis for investors and market watchers.

Key Financial Metrics

Metric	2H FY2025	1H FY2025	2H FY2024	FY2025	FY2024	YoY Change	QoQ Change
Revenue (S\$’000)	70,126	52,688	61,959	122,814	123,530	-1%	+13%
Gross Profit (S\$’000)	32,594	21,627	26,294	54,221	48,515	+12%	+24%
Net Profit Attributable to Equity Holders (S\$’000)	47,873	10,642	10,679	58,515	21,700	+170%	+348%
Earnings Per Share (Basic/Diluted, cents)	0.46	1.10	0.28	1.56	0.58	+169%	+64%
Proposed Final Dividend (cents per share)	0.15	–	0.10	0.15	0.10	+50%	N/A

Historical Performance Trends

Revenue: Relatively stable YoY, with a marginal decrease of 1% to S\$122.8 million in FY2025. However, 2H FY2025 saw a notable 13% jump compared to 2H FY2024, reflecting growth traction in the latter part of the year.
Net Profit: Surged 170% YoY to S\$58.5 million for FY2025, driven by both operational improvements and exceptional items.
Gross Profit Margin: Improved from 39% in FY2024 to 44% in FY2025, indicating a shift toward higher-margin business activities and operational efficiencies.
EPS: Increased sharply from 0.58 cents to 1.56 cents YoY, mirroring the spike in net profit.
Dividend: The board proposed a final dividend of 0.15 cents per share, up 50% from the previous year’s 0.10 cents.

Exceptional Items and Asset Revaluation

Reversal of Impairments: Exceptional gains in FY2025 include a reversal of impairment losses on property, plant, and equipment (S\$22.4 million) and on a joint venture receivable (S\$5.9 million) due to a vessel fleet revaluation and joint venture repayments.
Gain on Disposal: A gain of S\$3.2 million arose from the disposal of the joint venture Marco Polo Offshore (IV) Pte Ltd.
Foreign Exchange Impact: Net foreign exchange gains contributed S\$6.1 million to income, reversing the previous year’s losses.

Operational Review and Segment Performance

Ship Chartering: Revenue for this segment rose 12% YoY to S\$80.2 million, mainly due to the deployment of the first Commissioning Service Operation Vessel (CSOV), MP Wind Archer, and three new Crew Transfer Vessels (CTVs) in Taiwan. These assets contributed significantly to charter income.
Ship Building & Repair: This segment saw revenue decline 17% YoY, attributed to fewer third-party shipbuilding projects, partially offset by an uptick in higher-value repair projects.
Gross Profit: Ship chartering, with its higher margins, contributed more to the overall gross profit and margin improvement.

Balance Sheet and Cash Flow Highlights

Total Assets: Rose to S\$349.3 million, up from S\$274.4 million, primarily due to fleet expansion.
Net Assets: Increased to S\$264.3 million from S\$201.1 million, reflecting improved profitability and asset values.
Net Cash from Operations: Remained strong at S\$40.8 million, though cash and cash equivalents decreased to S\$52.2 million due to capital investments in vessels.
Interest-bearing Loans: Increased to S\$42.3 million, supporting fleet and infrastructure expansion but with continued low net gearing.

Divestments and Corporate Actions

Divestment: The company completed the disposal of its joint venture Marco Polo Offshore (IV) Pte Ltd during the year, booking a S\$3.2 million gain.
Share Options: As of 30 September 2025, 41,960,000 share options were outstanding under the 2024 Employee Share Option Scheme, exercisable at S\$0.067 per share.

Dividend Summary

Proposed final dividend for FY2025: 0.15 cents per share (tax-exempt, one-tier), up from 0.10 cents the previous year.
Dividend payout reflects strong earnings and management’s confidence in cash flows.

Macroeconomic and Industry Outlook

The company notes a stable outlook for the offshore oil & gas sector, with further growth expected in offshore wind due to global energy transition trends. However, risks persist from geopolitical tensions, US tariffs on critical components, and potential supply chain disruptions. The company expects new vessel deployments to boost revenue further in FY2026, while the completion of its fourth drydock and new shipbuilding projects should support the shipyard division’s forward momentum.

Chairman’s Statement

“As the global energy landscape continues to evolve against a backdrop of structural transition and recurring geopolitical and economic volatility, the Group intends to pursue emerging opportunities in a disciplined manner. Management remains focused on driving sustainable revenue growth while exercising prudent risk management to navigate the complexities of these dynamic markets. The Company will provide further updates on its business and operations on 2 December 2025.”

The tone is cautiously optimistic, emphasizing both opportunity and the need for prudence amid ongoing global uncertainties.

Conclusion & Investor Recommendations

Overall, Marco Polo Marine Ltd. delivered a strong financial performance in FY2025, marked by substantial profit growth, margin improvements, and higher dividends. The results were boosted by exceptional items, but underlying operational momentum—especially in ship chartering—remains positive. The balance sheet is robust, with manageable leverage and a higher net asset value per share.

If you currently hold the stock: Consider maintaining or accumulating your position. The company’s operational momentum, improving margins, and dividend increase suggest ongoing strength, with further upside possible from new vessel deployments and shipyard capacity in FY2026. Monitor for any signs of weakening macro conditions or execution risk in new projects.
If you do not currently hold the stock: Marco Polo Marine presents a compelling growth and value case, especially for investors seeking exposure to offshore marine and wind sectors. However, consider the exceptional items in FY2025 may not recur, and assess your own risk appetite for cyclical and capital-intensive industries before initiating a position.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult a financial advisor before making investment decisions.