Marco Polo Marine FY2025 Financial Results, Shipyard Expansion, and Offshore Wind Market Strategy Update

Marco Polo Marine FY2025 Update: Key Developments, Financial Highlights, and Strategic Outlook

Overview

Marco Polo Marine (SGX:5LY), a regional integrated marine logistics company, has released its FY2025 update, showcasing strong operational performance, strategic fleet expansion, and significant contract wins that could influence shareholder value. The company continues to pivot towards the renewable energy sector while maintaining a healthy balance sheet and expanding its market presence in Asia.

Key Financial Highlights

Revenue: S\$122.8 million in FY2025, a marginal decrease of 0.6% from S\$123.5 million in FY2024.
Gross Profit: Increased to S\$54.2 million (up 11.8%), with the margin rising to 44.1% from 39.3%.
EBITDA: Reached S\$50.1 million, up 17.3% from S\$42.7 million, with an EBITDA margin of 40.8%.
Net Profit to Owners: Surged by 169.7% to S\$58.5 million, versus S\$21.7 million in FY2024. However, adjusted net profit (excluding exceptional items) was S\$25.2 million, down 4.2% year-on-year.
Earnings Per Share (EPS): Increased dramatically to 1.56 Singapore cents (up 169.0%).
Net Asset Value (NAV): Rose to S\$264.3 million (S\$0.070 per share), compared to S\$201.1 million in the previous year.
Net Cash Position: Stood at S\$9.3 million as of 30 September 2025, despite a reduction in cash and cash equivalents due to increased borrowings supporting asset and fleet expansion.

Operational and Strategic Highlights

1. Fleet Expansion and Fleet Utilisation

The Group expanded its Offshore Support Vessel (OSV) fleet, including the deployment of 1 new Construction Service Operations Vessel (CSOV) and 3 Crew Transfer Vessels (CTVs) in Taiwan, contributing to higher charter income and improved fleet utilisation (71% in FY2025 vs 68% in FY2024).
Two new Anchor Handling Tug Supply (AHTS) vessels, valued at approximately US\$34 million, are expected to join the fleet in 2026, increasing the total fleet size from 19 to 21 vessels. These vessels are designed to support both oil and gas as well as offshore wind projects, enhancing flexibility and revenue generation potential.
Average charter rates rose, reflecting continued robust demand from offshore oil & gas and renewable energy sectors.

2. Shipyard and Shipbuilding Segment

The shipyard operated at an average utilisation rate of 83% in FY2025 (87% in 4QFY2025).
Shipyard revenue decreased by 17.4% year-on-year due to a shift away from lower-value third-party shipbuilding projects in favor of higher-value ship repair contracts, which now comprise a larger share of the business. The segment boasts a long-term customer base, with 50-70% repeat business.
Launch of a fourth dry dock in late August 2025, which has already secured a maiden S\$5 million contract and a 3-year ship repair & maintenance agreement with Cyan Renewables.

3. Largest-Ever Shipbuilding Project

Secured a landmark NT\$4.678 billion (≈S\$198 million) contract from Taiwan’s National Academy of Marine Research to design and construct a 4,000 gross tonne oceanographic research vessel (ORV), the largest shipbuilding project in the company’s history. The vessel will be built over 4 years at the Batam shipyard, featuring advanced technology and green innovations, and financed entirely through internal cash flows.
The ORV will include dynamic positioning (DP2), diesel-electric propulsion, battery energy storage, waste heat recovery, and advanced scientific equipment. The project is expected to deliver steady revenues and showcase the Group’s advanced capabilities.

4. New Vessel Development – CSOV+

Announced the development of the next-generation “CSOV+” in collaboration with Salt Ship Design. The vessel will feature battery hybrid power systems, alternative fuel compatibility, and advanced safety and operational capabilities, with delivery scheduled for Q2 2028.
The CSOV+ is designed to support the entire lifecycle of offshore wind farms, from construction to maintenance, positioning Marco Polo Marine as a leader in the high-growth offshore renewables sector.

5. Taiwan Market Expansion and PKR Offshore Listing

PKR Offshore (PKRO), the Group’s Taiwan-based subsidiary, will submit a listing application in Taiwan by 3Q 2026. The IPO proceeds will be used to further expand the wind vessel fleet, including additional CSOVs, and solidify Marco Polo Marine’s position in Asia’s burgeoning offshore wind market.
The move is expected to raise the Group’s profile, facilitate access to dynamic capital markets, and support long-term growth.

Strategic Outlook for FY2026

The OSV market remains firm, underpinned by a robust S\$100 million order book (as of 30 June 2025). The full-year contribution from the newly deployed CSOV and CTVs, as well as the delivery of the two new AHTS vessels in 2026, are expected to boost earnings.
The shipyard expects continued strong demand for drydocking and ship repair, with the S\$198 million ORV contract providing a significant revenue pipeline through 2028.
Expansion in the offshore wind sector is supported by a 3-year master service agreement with Cyan Renewables and the construction of CSOV+ commencing in 2026.
The company’s strategic pivot to renewables is enhancing asset utilisation and mitigating the cyclicality of the oil and gas sector, potentially driving higher and more stable profitability.

Investment Merits and Price-Sensitive Developments

The company’s net asset value has grown to S\$264.3 million, underpinned by tangible assets including the Batam shipyard and a diversified fleet.
Significant contract wins (S\$198 million ORV, increased ship repair agreements), the expansion of the fleet with high-spec AHTS vessels, and the upcoming PKRO listing in Taiwan are all material developments that could positively impact the Group’s valuation and share price.
The strategic focus on renewables and the offshore wind sector positions Marco Polo Marine for long-term growth in high-value markets, differentiating it from peers with its integrated designer, builder, owner, and operator model.

Conclusion

Marco Polo Marine’s FY2025 performance and recent initiatives signal a transformative phase for the Group, with substantial contract wins, strategic fleet expansion, and a deepening pivot into renewables. These developments, especially the landmark shipbuilding contract and the upcoming listing of PKR Offshore, are likely to be price-sensitive and could significantly influence shareholder value in the near to medium term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities. While every effort has been made to ensure accuracy, the information herein is based on the company’s FY2025 update and may contain forward-looking statements subject to risks and uncertainties. Investors should conduct their own due diligence or consult a professional advisor before making investment decisions.