Singapore-listed offshore services provider Marco Polo Marine’s profit dropped 74% year on year to SGD0.34 million (USD0.25 million) for the third quarter of 2015.
The company’s third quarter revenue also dipped 17% from SGD26.8 million a year ago to SGD22.3 million.
The decrease in revenue was mainly due to lower revenue contribution from its ship chartering operations segment, which was affected by lower tugboat and barge fleet utilisation.
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Marco Polo Marine’s third quarter operating costs surged 106% y/y to SGD2.2 million, as the company was impacted by the strengthening of US dollar.
The company, in its filing to the Singapore Exchange, stated that it expects a challenging market outlook for its tugboat and barge division and shipbuilding and repair segment without much improvement in next 12 months amid volatile oil prices, subdued economic outlook, and strong competition in the region
Marco Polo Marine’s ship chartering operations is expected to be the main driving force behind the financial performance of the company in the next 12 months, it added in the filing.