Broker: Maybank Research Pte Ltd
Date of Report: September 25, 2025
Marco Polo Marine Accelerates Growth: Fleet Expansion, Offshore Wind Focus, and Financial Momentum

Investment Thesis: Fleet Expansion Drives Earnings Growth

Marco Polo Marine (MPM SP), a reputable marine logistics operator in Southeast Asia, is set to deliver robust earnings growth, driven by strategic fleet expansion and strong demand from both the oil & gas (O&G) and renewable energy sectors. Maybank Research maintains a BUY rating on MPM with an unchanged target price of SGD0.09, highlighting material upside as the company executes on its multi-year growth plan.

Key Developments: New Vessel Additions and Chartering Opportunities

• CSOV Expansion: MPM will build a second Commissioning Service Operation Vessel (CSOV) in partnership with Norway’s Salt Ship Design, scheduled for delivery in 4Q28. This vessel, constructed at the Batam shipyard, will serve offshore windfarms and the O&G sector, potentially boosting EPS by 30–35% once operational.
• AHTS Additions: Two new Anchor Handling Tug Supply (AHTS) vessels worth USD34 million will join the fleet by end-2026, expanding the total fleet from 19 to 21 vessels. These vessels are designed for Southeast Asian O&G support and offshore windfarm deployment in Northeast Asia.

Utilisation and Revenue Impact

• Current CSOV generates USD50–60k/day, or approximately USD17.5 million annually at 80% utilisation, delivering USD5–6 million net profit per year.
• Each AHTS vessel is expected to be chartered at USD10–11k/day, contributing USD3–3.5 million in annual revenue per vessel.

Financial Highlights and Outlook

Recent Share Price Performance and Valuation

• Current share price: SGD 0.077
• 12-month price target: SGD 0.090 (+17%)
• Market capitalization: SGD 283.6 million (USD 220 million)
• Issued shares: 3,683 million
• 52-week high/low: SGD 0.08 / SGD 0.04
• Free float: 68.4%

Business Overview: Integrated Marine Logistics Leader

Marco Polo Marine charters, builds, converts, maintains, and repairs vessels, serving both traditional O&G and the rapidly expanding offshore wind segment. Since its restructuring in 2017, MPM has refocused on growth, particularly in Taiwan’s offshore wind market and broader Southeast Asian renewable energy opportunities.

Growth Drivers: Charter Rates, Utilisation, and New Contracts

• Improved charter rates and vessel utilisation: Utilisation rates climbed from 50–60% to 70–80% in FY23, supporting rising profitability.
• Long-term contract wins: The new CSOV secured a 3-year charter with windfarm giant Vestas.
• Ship repair revenues: Higher demand and rates are expected to drive continued growth.
• Fleet additions: Ongoing acquisition of vessels to service Taiwan’s offshore wind market and other regional operators.

Financial Metrics and Ratios Snapshot

Balance Sheet and Cash Flow Strength

• Strong net cash position maintained throughout forecast period
• Operating cash flow remains positive, supporting dividend payouts and capex for fleet expansion
• Free cash flow yield expected to improve (FY27E: 16.1%)

Shareholder Structure and Major Holders

• Apricot Capital Pte Ltd. (SG): 16.2%
• Penguin International Ltd.: 8.1%
• Nautical International Holdings Ltd.: 3.8%
• Free float: 68.4%

Risks and Swing Factors

Upside Potential:

• Further rises in charter rates and vessel utilisation could boost NPAT by 30% YoY in FY24E
• New CSOV and long-term contracts may drive additional fleet acquisitions and revenue growth
• Shipyard expansion increases repair business capacity

Downside Risks:

• Global recession or economic slowdown could reduce demand for vessel charters
• Oil price declines may negatively impact sentiment in the sector
• Geopolitical risks, especially China-Taiwan tensions, could disrupt charter operations

Conclusion: Growth Story with Robust Financials and Strategic Positioning

Marco Polo Marine stands out as a leading integrated marine logistics provider, riding strong sector tailwinds from the O&G and renewable energy markets. With its fleet expansion plans and proven operational execution, the company is well-positioned to deliver significant EPS and NPAT growth in the coming years. The robust balance sheet, strong cash flow, and increasing dividends underscore its investment appeal. Maybank Research’s positive outlook is supported by a clear growth trajectory, prudent financial management, and strategic focus on high-demand markets.

Historical Recommendations and Ratings

Contact Information: Maybank Research Offices

• Malaysia: Maybank Investment Bank Berhad
• Singapore: Maybank Securities Pte Ltd, Maybank Research Pte Ltd
• London: Maybank Securities (London) Ltd
• Hong Kong: MIB Securities (Hong Kong) Limited
• Indonesia: PT Maybank Sekuritas Indonesia
• India: MIB Securities India Pte Ltd
• Philippines: Maybank Securities Inc
• Thailand: Maybank Securities (Thailand) PCL
• Vietnam: Maybank Securities Limited

Marco Polo Marine’s strategic fleet expansion and focus on high-growth sectors position it as a compelling investment opportunity in the marine logistics space. With accelerating earnings, a solid balance sheet, and a clear roadmap, investors and market watchers should keep a close eye on its progress.