Stock Analysis: MarcoPolo Marine
Marco Polo Marine recommends buying, with a target price of 0.06 SGD, and the current closing price is 0.044 SGD (up 2.326%). In the first half of the 2025 fiscal year, net profit decreased by 13.7% year-on-year to 9.6 million SGD, mainly due to the initial investment in the operation of commissioning service vessels and a reduction in third-party chartering business. Performance is expected to improve starting from the third quarter, due to the full deployment of commissioning service vessels and seasonal benefits. The company will redirect 50% of its chartering revenue to offshore wind power projects to mitigate the impact of falling oil prices
Extended Reading
After adjusting for the high upfront costs of the commissioning service operation vessel, we have revised our forecast for the company's net profit after minority interests (PATMI) for the fiscal year 2025/2026 downwards by 12.7% and 13%, respectively. We maintain a "Buy" rating but have lowered the target price to SGD 0.06. (Malayan Banking Research)
Marco Polo Marine's net profit for the first half of fiscal year 2025 fell by 13.7% year-on-year to SGD 9.6 million, mainly affected by the upfront investment in commissioning service operation vessels (CSOV) and a decrease in third-party chartering business. However, we expect the company's performance to improve significantly from the third quarter onwards, as the commissioning service operation vessels come into full operation and seasonal benefits drive growth in the second half of the year.
Additionally, oil prices have dropped significantly in recent months, and there are signs that charter rates in the oil and gas industry are declining. However, the company has redirected about 50% of its charter income to offshore wind power projects, which can buffer the impact of continuously falling oil prices.
Marco Polo Marine
- Recommendation: Buy
- Target Price: SGD 0.06
- Closing Price: SGD 0.044 (+2.326%)
