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Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<h2>10 Questions for Marco Polo Marine</h2>
Company Overview Established in 1991, Marco Polo Marine is an integrated marine logistics company which principally engages in shipping and shipyard businesses. It has two business segments – 1) Shipping Division relating to chartering of Offshore Supply Vessels (OSV), tugboats and charters, and 2) Shipyard Division relating to ship building and provision of ship maintenance, repair, outfitting and conversion services. <a href="https://www.sgx.com/securities/equities/5LY" target="_blank" rel="noopener">Link to StockFacts company page</a>
<ol>
<li>Could you elaborate on Marco Polo Marine’s business segments and focus?</li>
</ol>
▪ Marco Polo Marine operates two main business segments:
▪ Ship Building &amp; Repair – Provides ship building and repair activities from our shipyard at Batam, Indonesia. Over the years, we have expanded our ship repair services to include merchant vessels such as containerships aside from serving just the Oil &amp; Gas (O&amp;G) sector vessels.
▪ Ship Chartering – Involves chartering of vessels to service the O&amp;G and renewables (specifically the offshore windfarm) sectors, and the chartering of Tugs &amp; Barges to service mainly the construction sector in Singapore. We currently own 11 OSVs, 2 Maintenance Work Vessels (MWV) and 24 Tugs &amp; Barges.
2. Describe the Group’s financial performance over the past few years. What were some drivers for the turnaround performance in 1HFY2021?
<ul>
<li>Following our debt restructuring in FY2017, the Group was given a clean slate, maintaining a strong net cash position and a strong focus on cost and cashflow management which has helped the Group narrow losses and achieved positive operational EBITDA .</li>
<li>In 1HFY2021, the Group reported an 88% y-o-y surge in operational EBITDA to S$4.0 million on the back of higher revenue and margin expansion. Gross profit margin increased to 24% in 1HFY2021 from 18% in 1HFY2020 mainly due to the absence of one-off reactivation costs incurred for our fleet of offshore vessels during the current period.</li>
</ul>

10 Questions for Marco Polo Marine
Company Overview Established in 1991, Marco Polo Marine is an integrated marine logistics company which principally engages in shipping and shipyard businesses. It has two business segments – 1) Shipping Division relating to chartering of Offshore Supply Vessels (OSV), tugboats and charters, and 2) Shipyard Division relating to ship building and provision of ship maintenance, repair, outfitting and conversion services. Link to StockFacts company page

Could you elaborate on Marco Polo Marine’s business segments and focus?

▪ Marco Polo Marine operates two main business segments:
▪ Ship Building &amp; Repair – Provides ship building and repair activities from our shipyard at Batam, Indonesia. Over the years, we have expanded our ship repair services to include merchant vessels such as containerships aside from serving just the Oil &amp; Gas (O&amp;G) sector vessels.
▪ Ship Chartering – Involves chartering of vessels to service the O&amp;G and renewables (specifically the offshore windfarm) sectors, and the chartering of Tugs &amp; Barges to service mainly the construction sector in Singapore. We currently own 11 OSVs, 2 Maintenance Work Vessels (MWV) and 24 Tugs &amp; Barges.
2. Describe the Group’s financial performance over the past few years. What were some drivers for the turnaround performance in 1HFY2021?

Following our debt restructuring in FY2017, the Group was given a clean slate, maintaining a strong net cash position and a strong focus on cost and cashflow management which has helped the Group narrow losses and achieved positive operational EBITDA .
In 1HFY2021, the Group reported an 88% y-o-y surge in operational EBITDA to S$4.0 million on the back of higher revenue and margin expansion. Gross profit margin increased to 24% in 1HFY2021 from 18% in 1HFY2020 mainly due to the absence of one-off reactivation costs incurred for our fleet of offshore vessels during the current period.


10 in 10 with Marco Polo Marine - Steering Into Renewables