CGS International Securities
September 24, 2025
Marco Polo Marine Rides Offshore Recovery: Fleet Expansion, Diversification, and Financial Strength in Focus
Introduction: Marco Polo Marine Accelerates Growth With Fleet Expansion
Marco Polo Marine (MPM), a Shariah-compliant offshore and marine player listed in Singapore, has confirmed the addition of two new anchor handling tug supply (AHTS) vessels to its fleet. This move brings the company’s total offshore support fleet to 21 vessels, reinforcing its presence in high-growth Southeast Asian markets and underscoring its dual-sector growth strategy. The company’s latest announcement comes amid a more favorable bank financing environment for vessel owners and growing demand in the offshore sector.
Fleet Expansion: Details and Strategic Impact
- MPM’s two new AHTS vessels are expected to begin contributing revenue from the second half of FY2026.
- Both units are likely to be deployed in Thailand, complementing the company’s existing seven vessels operating in the region.
- Dayrates are estimated at approximately US\$1.2 per brake horsepower (BHP), potentially adding around S\$7 million in annual chartering revenue.
- AHTS 1: Managed by 71%-owned Indonesian subsidiary PT BBR, features 6,000 BHP, 60.8m length overall (LOA), 16m breadth. Acquired from Great Union China Limited for US\$12.1m.
- AHTS 2: Singapore-registered under MPM, 10,800 BHP, 76.0m LOA, 18.5m breadth. This vessel is being constructed by MPM.
- Total combined value for both vessels: US\$34m (approx. S\$44m), funded through a mix of debt and internal cash.
Diversification Strategy: Beyond AHTS
- MPM is also planning to construct a second Commissioning Service Operation Vessel (CSOV) starting in 2026, targeting operational readiness by 2028.
- A charter contract for the second CSOV is yet to be secured.
- The company continues to pursue a dual-sector growth approach, balancing offshore oil and gas with offshore wind and renewables.
Financial Performance: Key Forecasts and Metrics
| Metric |
Sep-24A |
Sep-25F |
Sep-26F |
Sep-27F |
| Net Profit (S\$m) |
21.7 |
22.1 |
32.0 |
35.8 |
| Core EPS (S\$) |
0.006 |
0.006 |
0.009 |
0.010 |
| Core EPS Growth |
-10.0% |
44.5% |
11.8% |
— |
| FD Core P/E (x) |
12.88 |
8.91 |
7.97 |
— |
| ROE (Recurring) |
11.3% |
14.5% |
14.2% |
— |
| DPS (S\$) |
0.001 |
0.001 |
0.001 |
— |
| Dividend Yield |
1.45% |
1.45% |
1.58% |
— |
Other key ratios include a 2026F price-to-book value of 1.21x, a projected gross interest cover of over 30x, and continued strong cash flow generation. Revenue is expected to grow by 20.4% in FY26, with EBITDA margin rising to 37.4%.
Marco Polo Marine: Valuation and Shareholder Profile
- Current share price: S\$0.076
- Target price: S\$0.08 (upside 5.3%)
- Market capitalization: US\$222.4m (S\$285.3m)
- Average daily turnover: US\$1.20m
- Shares outstanding: 3,754m
- Free float: 51.3%
- Major shareholders: Lee Family (22.6%), Apricot Capital Pte Ltd (16.5%), Penguin International Limited (8.1%)
Peer Comparison: Offshore Marine Players in Asia Pacific
| Company |
Ticker |
Reco. |
Price (lcl curr) |
Target Price (lcl curr) |
Mkt Cap (US\$ m) |
P/E 2025F |
P/E 2026F |
EPS CAGR (25-26F) |
P/BV 2025F |
P/BV 2026F |
ROE 2025F |
Dividend Yield (2025F) |
| Marco Polo Marine |
MPM SP |
Add |
0.08 |
0.08 |
222 |
11.6 |
8.7 |
19.1% |
1.3 |
1.2 |
12.2% |
1.4% |
| Pacific Radiance |
PACRA SP |
Add |
0.09 |
0.09 |
103 |
8.0 |
7.1 |
94.9% |
1.0 |
0.9 |
13.8% |
0.5% |
| Mermaid Maritime |
MMT SP |
Add |
0.13 |
0.16 |
190 |
9.3 |
6.6 |
59.3% |
0.7 |
0.7 |
8.2% |
0.0% |
| Vallianz Holdings Ltd |
VALZ SP |
NR |
0.04 |
na |
39 |
na |
na |
na |
na |
na |
na |
na |
| ASL Marine Holdings Ltd |
ASL SP |
NR |
0.20 |
na |
151 |
na |
na |
na |
na |
na |
na |
na |
| Kim Heng Ltd |
KHOM SP |
NR |
0.09 |
na |
48 |
na |
na |
na |
na |
na |
na |
na |
| Nam Cheong Ltd |
NCL SP |
NR |
0.73 |
na |
223 |
na |
na |
na |
na |
na |
na |
na |
| Wintermar Offshore Marine Tbk |
WINS IJ |
NR |
472.0 |
na |
126 |
na |
na |
na |
na |
na |
8.1% |
na |
| Lianson Fleet Group Bhd |
LFG MK |
NR |
1.98 |
na |
516 |
25.7 |
20.0 |
15.7% |
1.8 |
1.7 |
14.5% |
1.5% |
| Sea1 offshore Inc |
SEA1 NO |
NR |
22.80 |
na |
352 |
4.1 |
5.8 |
-34.0% |
0.8 |
0.7 |
25.2% |
26.6% |
| Tidewater Inc |
TDW US |
NR |
55.24 |
na |
2,734 |
15.4 |
12.9 |
11.7% |
2.4 |
2.0 |
12.4% |
4.3% |
| Helix Energy Solutions Group I |
HLX US |
NR |
6.58 |
na |
967 |
33.6 |
17.1 |
1.9% |
0.6 |
0.6 |
na |
na |
| Subsea 7 SA |
SUBC NO |
NR |
204.2 |
na |
6,148 |
14.8 |
11.6 |
62.0% |
1.4 |
1.5 |
9.7% |
5.3% |
Peers’ average (excluding MPM): P/E 2025F 15.0x, 2026F 11.6x, EPS CAGR 26.7%, P/BV 1.3x/1.2x, ROE 13.1%, Dividend Yield 6.4%.
Operational and Cash Flow Highlights
- EBITDA is forecast to rise from S\$42.7m (Sep-24A) to S\$59.3m (Sep-27F).
- Operating EBITDA margin set to improve from 34.6% to 38.8% over the period.
- Capex requirements remain sizable, peaking at S\$50m in Sep-24A and Sep-27F, reflecting ongoing fleet renewal and CSOV construction.
- Free cashflow to equity is expected to swing from -S\$12.0m (Sep-25F) to S\$17.3m (Sep-26F).
- Balance sheet shows strong liquidity: Total cash and equivalents rise from S\$68.8m (Sep-24A) to S\$78.4m (Sep-27F).
- Net cash per share is projected at S\$0.012 in Sep-26F.
- Shareholders’ equity surges from S\$185.0m (Sep-24A) to S\$268.9m (Sep-27F).
Key Risks and Catalysts
- Re-rating Catalysts: Securing a charter for the second CSOV and achieving higher-than-expected fleet utilization rates.
- Downside Risks: Lower-than-anticipated yard utilization, and delays in offshore wind projects that could dampen vessel demand.
Conclusion: Marco Polo Marine Well-Positioned for Offshore Upswing
MPM stands out in the offshore & marine sector for its robust fleet expansion, prudent financial management, and commitment to a dual-sector growth strategy. The company’s ongoing diversification into both oil & gas and renewables, solid peer positioning, and healthy balance sheet make it an attractive prospect for investors seeking exposure to Southeast Asia’s vibrant offshore markets. With a positive outlook, manageable risks, and a clear path to value creation, Marco Polo Marine’s trajectory remains one to watch in the coming quarters.
