Broker: Maybank Research Pte Ltd
Date of Report: September 25, 2025

Marco Polo Marine Sets Sail for Growth: Fleet Expansion and Strong Financials Drive Bullish Outlook

Introduction: Marco Polo Marine Charts an Ambitious Growth Course

Marco Polo Marine (MPM), a prominent integrated marine logistics group in Southeast Asia, is making waves with its aggressive fleet expansion and robust financial outlook. With new vessel acquisitions, strategic partnerships, and a focus on both the offshore oil & gas (O&G) and renewable energy sectors, MPM is poised for significant growth. Maybank Research maintains a bullish stance with a “BUY” recommendation and a target price of SGD 0.09, reflecting confidence in MPM’s expansion strategy and financial discipline.

Investment Summary: Fleet Growth, Strategic Partnerships, and Financial Upside

– MPM is set to expand its fleet from 19 to 21 vessels by end-2026. – The company will build a second Commissioning Service Operation Vessel (CSOV) in collaboration with Norway’s Salt Ship Design, scheduled for completion in 4Q28. – Acquisition of 2 new Anchor Handling Tug Supply (AHTS) vessels worth USD34 million will add significant capacity and earnings potential. – New fleet additions are expected to substantially boost earnings per share (EPS) from FY27 through FY30. – Maybank maintains a “BUY” rating, underpinned by a resilient business model and strong demand in both O&G and renewables.

Fleet Expansion: New Vessels to Drive Substantial Earnings Growth

Second CSOV to Boost EPS by 30-35% in 2028 – MPM’s first CSOV has stabilized and is fully chartered, primarily serving Taiwan’s offshore windfarms. – The new CSOV, to be built at MPM’s Batam shipyard in partnership with Salt Ship Design, will be tailored for both offshore wind and O&G sectors. – Construction starts in 2Q26, with delivery slated for 4Q28. – The current CSOV generates USD50,000-60,000 per day in revenue, equating to approximately USD17.5 million per year at 80% utilization, and delivers a net profit after tax (NPAT) of USD5-6 million annually—indicating the high earnings potential of the second CSOV.
2 New AHTS Vessels: Strengthening Regional Presence
The two new AHTS vessels, valued at USD34 million, will bring MPM’s fleet to 21 vessels.
AHTS 1 will be owned 71% by MPM, featuring 80 tonnes bollard pull and 6,000 brake horsepower (BHP).
AHTS 2, Singapore-registered, will be equipped with 135 tonnes bollard pull and 10,800 BHP—capable of supporting both O&G and offshore windfarm projects across Southeast and Northeast Asia.
Charter rates for the new AHTS are estimated at USD10,000-11,000 per day, contributing USD3-3.5 million in annual revenue per vessel.

Financial Performance: Strong Cash Flows and Profitability

MPM’s financials reflect both resilience and growth potential. The company’s pivot to renewable energy, strong chartering demand, and prudent capital management have underpinned its recovery and ongoing expansion.

Company Profile and Strategic Positioning

Marco Polo Marine is a leading regional marine logistics operator. The company charters, builds, converts, maintains, and repairs vessels, with a growing reputation in the Southeast Asian market. Its pivot toward servicing Taiwan’s offshore windfarms and expansion into other renewable markets highlights its adaptability and forward-thinking strategy.

Other key details:
52-week high/low: SGD 0.08 / 0.04
Issued shares: 3,683 million
Market capitalization: SGD 283.6 million (USD 220 million)
Free float: 68.4%

Key Value Drivers: Charter Rates, Utilization, and Renewables

– Strong demand from both O&G and renewable energy sectors continues to propel chartering, ship repair, and maintenance revenues. – Charter rates and utilization have increased YoY, with vessel utilization rising from 50-60% to 70-80% in FY23. – The new CSOV has secured a 3-year charter agreement with windfarm leader Vestas, ensuring stability and predictability of future revenues. – Increasing project launches in the region’s offshore renewables sector bode well for future vessel demand. – Shipyard expansion is underway to boost capacity and capture higher repair business demand.

Financial Metrics and Ratios: Growth, Margins, and Efficiency

Cash Flow Resilience and Capital Management

– MPM has consistently generated strong operating cash flow, supporting ongoing capex for fleet expansion. – The company maintains a net cash position, with prudent leverage. – Dividend distributions are expected to increase as profitability rises, with a payout ratio ranging from 0% to 17% over the forecast period.

Risks and Swing Factors: Upside and Downside Considerations

Upside:

• Rising charter rates and vessel utilization could further boost NPAT growth by 30% YoY in FY24E.
• Contributions from the new CSOV and long-term contracts may accelerate EPS growth.
• Shipyard and fleet expansion could capture higher demand from renewable projects in the region.

Downside:

• A global recession or economic slowdown could dampen vessel demand and charter rates.
• Oil price volatility may adversely impact sentiment in the vessel chartering and building sectors.
• Geopolitical tensions, particularly between China and Taiwan, could disrupt charter operations.

Valuation and Price Performance

– The current share price stands at SGD 0.077, with a 12-month target price of SGD 0.09 (+17% upside). – MPM’s core P/E is forecasted at 11.8x for FY25E, declining to 7.9x by FY27E, reflecting growing earnings and a strong outlook. – The company has demonstrated a robust price recovery since its 2017 restructuring, with continued momentum fueled by operational improvements and sector tailwinds.

Conclusion: Marco Polo Marine Remains a Top Pick in Marine Logistics

Marco Polo Marine stands at the forefront of Southeast Asia’s marine logistics boom, powered by a strategic fleet expansion, sector diversification, and a solid financial foundation. With its strong net cash position, rising charter rates, and bold moves into the renewables market, MPM is well-positioned to deliver attractive returns for shareholders. Maybank Research’s sustained “BUY” recommendation and optimistic forecasts underscore the company’s compelling long-term investment potential.

Key Contacts and Additional Information

For further research, investors can refer to Maybank Research’s regional offices and sector coverage teams, including specialists in O&G, renewables, logistics, and financial markets.
Note: All company and financial data reflect the latest reported figures and analyst estimates as of September 25, 2025.
This comprehensive analysis offers investors a detailed view of Marco Polo Marine’s trajectory, providing the insight needed to make informed investment decisions in the dynamic marine logistics sector.