Singapore Exchange Mainboard-listed Marco Polo Marine Ltd together with its subsidiaries, a growing regional integrated marine logistic group, announced its half-year financial results for the period ended 31 March 2013 (“H1FY2013”).
The Group’s revenue decreased by 34.4% to S$36.5 million in H1FY2013 relative to H1FY2012 and by 31.3% to S$21.3 million relative to Q2FY2012, due principally to the lower revenues registered by its Ship Building & Repair Operations which more than outstripped the higher revenues recorded by its Ship Chartering Operations.
The Ship Building & Repair Operations’ revenue decreased by 67.7% relative to H1FY2012 and by 81.6% relative to Q2FY2012, due mainly to fewer repair jobs as well as slower uptake in new-build orders.
The Ship Chartering Operations’ revenue increased by 105.6% to S$22.0 million in H1FY2013 and by 236.7% to S$16.5 million in Q2FY2013, attributed chiefly to BBR following the Transition.
Gross Profit / Net Profit
The gross profit of the Group increased by 6.9% relative to Q2FY2012 and by 1.6% relative to H1FY2012, at improved gross profit margins from 27.1% to 42.1% in Q2FY2013 and from 26.3% to 40.7% in H1FY2013. The improved gross profit performance was attributed mainly to a one-off gain of S$1.1 million, being redelivery fee earned in respect of an offshore vessel having to be moved from Australia to Singapore following the expiry of the underlying charter contract, and higher charter rates the Group enjoyed in Indonesian waters.
The Group’s profit before tax and extraordinary item increased from S$10.2 million in H1FY2012 to S$11.1 million in H1FY2013, due mainly to the improved gross profit performance as well as a turnaround in the share of results of BBR prior to 9 January 2013, from a loss of S$1.1 million in H1FY2012 to a profit of S$1.1 million in H1FY2013.
The exceptional item of S$5.7 million in Q2FY2013 was a re-measurement gain in connection with a deemed disposal required to be recognized under FRS 103 – Business Combinations, which stipulates that the Group’s equity interest in BBR prior to the Transition be re-measured as if the stake had been disposed.
The share of results from jointly controlled companies increased by 79.3% for H1FY2013 to S$S$1.3 million, mainly attributed to the contribution from the jointly controlled entity forged in Q4FY2012 which is engaged in the bunker tankers business (the “Bunkering JV”).
Commenting on the financial performance for H1FY2013, Mr Sean Lee Yun Feng, CEO of the Company, remarked:
“We continue to be encouraged by the set of results attained for H1FY2013, amidst subdued and uncertain market environment. With regard to ship chartering, our deliberate shift in focus towards the offshore oil and gas sector has led to enhanced contribution to both our chartering profits and margins. In less than 3 years, we have established our position as a reliable and reputable operator in the offshore oil and gas sector. All our Offshore Supply Vessels (“OSV”) are being chartered out on a time charter basis at the moment.
Accentuating our entrenched position, we are forging ahead to fulfil our vision of being one of the largest OSV owners and operators in the region especially in Indonesia. In this regard, we are well on track and are currently embarking on a fleet expansion programme to build OSV.
A point worth noted is that Indonesia’s offshore oil and gas sector is only at its nascent stage of development and is characterised by rapidly emerging demand and curtailed supply in part due to the Cabotage Principle.
Last but not the least, we will continue to seek out investment opportunities in the bunkering arena together with our joint-venture partner, given that our Bunkering JV is doing well and is the main contributor to the 79.3% increase in the share of results from jointly-controlled companies in H1FY2013 compared to H1FY2012.”
Marco Polo Marine, May 10, 2013