• First Half EBITDA surges 255% YoY to S$3.9m on the back of higher revenue and margin expansion
  • Positive signs have emerged recently, indicating the sector downturn may be bottoming-out


SINGAPORE - Media OutReach - 14 May 2021 - Marco Polo Marine Ltd. (SGX:5LY) ("Marco Polo Marine" or the "Company", and together with its subsidiaries, "the Group"), a reputable regional integrated marine logistics company, today announced its financial results for the half year ended 31 March 2021 ("1HFY2021").


Marco Polo Marine reported a net attributable profit of S$5.9 million for 1HFY2021, compared to a 1HFY2020 net loss of S$0.7 million. Group revenue for the period gained 13.8% to S$21.1 million, from S$18.6 million in 1HFY2020, as sales from its Ship Building & Repair division surged 34.5% year-on-year.

 

1HFY2021 Financial Highlights

S$ million

 1HFY2021 

 1HFY2020 

 Y-o-Y % change 

Revenue

21.1

18.6

13.8%

Gross Profit

5.0

3.4

46.9%

Gross Profit Margin  

23.8%

18.4%

EBITDA*

3.9

1.1

254.5%

EBITDA Margin

18.5%

5.9%

Net Profit / (Loss)

5.9

(0.7)

NA

*Excludes foreign exchange losses (mainly unrealised in nature) and one-off gain arising from the acquisition of debt


Gross profit surged 47% to S$5.0 million in 1HFY2021 from S$3.4 million in 1HFY2020, with gross profit margin increasing to 24% in 1HFY2021 from 18% in 1HFY2020. This was mainly due to the absence of one-off reactivation costs incurred for its fleet of offshore vessels during the current period. 

 

Excluding foreign exchange losses and the one-off gain from the acquisition of debt, the Group's earnings before interest, tax, depreciation and amortization (EBITDA) increased to S$3.9 million in 1HFY2021, from S$1.1 million in 1HFY2020.

 

Other operating income increased significantly to S$7.3 million in 1HFY2021 from S$2.4 million in 1HFY2020, following a S$6.2 million gain from the acquisition of debt (as announced by the Company on 13 October 2020).

 

The share of losses from jointly controlled companies decreased to approximately S$20,000 in 1HFY2021 from S$1.0 million in 1HFY2020. The share of losses was attributable to a lower utilisation of the vessel held by Pelayaran Era Sdn Bhd. The Group has ceased to recognise the share of results from its joint venture, PT Pelayaran Nasional Bina Buana Raya Tbk ("PT BBR") in the current period, since the losses to be recognised have exceeded the Company's cost of investment in PT BBR.


Segmental Breakdown

S$ million

 1HFY2021 

 1HFY2020 

 Y-o-Y % change 

Ship Chartering Operations

9.4

9.9

-5.1%

Ship Building & Repair Operations  

11.7

8.7

34.5%

Total Revenue

21.1

18.6

13.8%


Revenue from the Group's Ship Chartering Operations fell by 5% to S$9.4 million in 1HFY2021 from S$9.9 million in 1HFY2020, mainly due to lower charter rates for the Group's fleet of tugboats and barges. Average utilisation rates for both its fleet of tugboats and barges as well as OSVs have remained comparable to that of the same period last year.

 

The Group's Ship Building & Repair Operations recorded a 34% rise in revenue to S$11.7 million in 1HFY2021 from S$8.7 million in 1HFY2020, mainly due to increased ship repair jobs during the period. Its Ship Building division has also commenced new projects in relation to the construction of two Smart Fish Farms, as announced by the Company on 17 August 2020, which led to the higher revenue.


Moving Forward

The outlook for the offshore marine industry remains challenging, as the COVID-19 pandemic continues to crimp oil demand as well as oil and gas activities, resulting in a slowdown in the Group's ship chartering and shipyard operations. However, positive signs have emerged recently, indicating that the sector downturn may be bottoming-out gradually. The Group has also taken steps to capitalise on emerging opportunities in certain segments.

 

For the Group's ship chartering business, it will continue to step up marketing efforts to improve its performance and explore additional revenue sources by venturing beyond Southeast Asia, in particular, into the offshore windfarm renewable energy segment. The utilisation of its fleet of tugboats and barges is also expected to improve as construction activities in Singapore progressively resume. For the Group's shipyard division, it will continue to focus on securing ship repair and maintenance orders from regional ship owners.


Mr Sean Lee, Chief Executive Officer of Marco Polo Marine, commented: "Despite the industry's challenging backdrop, we were able to register a creditable performance for 1HFY2021, returning to profit from a net loss in the previous period. Our efforts to diversify into the renewables sector has started to bear fruit, and the Group will continue to focus on transitioning into green energy. "


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