Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX</strong>.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>Marco Polo Marine Ltd</h2>
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<h3>Tides turning in favor of Marco Polo</h3>
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<p><strong>Marco Polo Marine Ltd primarily engages in ship chartering and shipyard businesses. </strong>It has a fleet of 37 OSVs, tugboats and barges for charter. The Group does ship repair and shipbuilding works at its 34 ha Batam shipyard. Revenue from Ship chartering/Shipyard segments are split 44%/56% each.</p>
<p><strong>Promising potential in Taiwan windfarm market.</strong> MPM will be increasing the no of vessels chartered to Taiwan from 2 to 4 end 2022 as Taiwan ramps up its offshore wind capacity. Taiwan is aiming for 15GW by 2035. Local content requirements (i.e. Vessels’ age &lt; 12 years old, Ban of China-built vessels) are raising the barriers to entry for competitors. Reflagging exercise will give the Group an edge to securing more contracts as well. Windfarm projects offer 15-20% price premium to O&amp;G projects.</p>
<p><strong>Enjoying higher charter and utilization rate.</strong> Brent crude oil is up 54.8% YTD hovering above US$70/barrel as at 28 Dec. Oil majors (i.e. TotalEnergies, ExxonMobil etc) have preliminary plans to increase CAPEX by 8-25% to capitalize on the current robust price environment. On the other hand, competing interests for OSVs from offshore renewables and decommissioning projects are snapping up available vessels in the market. With ~50% of MPM’s vessels due for charter renewal in 1H22, further upside in charter rates will help with revenue growth and margin expansion.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Marco Polo Marine Ltd




Tides turning in favor of Marco Polo




Marco Polo Marine Ltd primarily engages in ship chartering and shipyard businesses. It has a fleet of 37 OSVs, tugboats and barges for charter. The Group does ship repair and shipbuilding works at its 34 ha Batam shipyard. Revenue from Ship chartering/Shipyard segments are split 44%/56% each.
Promising potential in Taiwan windfarm market. MPM will be increasing the no of vessels chartered to Taiwan from 2 to 4 end 2022 as Taiwan ramps up its offshore wind capacity. Taiwan is aiming for 15GW by 2035. Local content requirements (i.e. Vessels’ age &lt; 12 years old, Ban of China-built vessels) are raising the barriers to entry for competitors. Reflagging exercise will give the Group an edge to securing more contracts as well. Windfarm projects offer 15-20% price premium to O&amp;G projects.
Enjoying higher charter and utilization rate. Brent crude oil is up 54.8% YTD hovering above US$70/barrel as at 28 Dec. Oil majors (i.e. TotalEnergies, ExxonMobil etc) have preliminary plans to increase CAPEX by 8-25% to capitalize on the current robust price environment. On the other hand, competing interests for OSVs from offshore renewables and decommissioning projects are snapping up available vessels in the market. With ~50% of MPM’s vessels due for charter renewal in 1H22, further upside in charter rates will help with revenue growth and margin expansion.













(Non-SGX Report) Marco Polo Marine Ltd - Tides Turning in Favor of Marco Polo