Singapore-listed integrated marine logistic company Marco Polo Marine posted a profit of SGD3.8 million (USD2.85 million), up 24% year on year (y/y) for the second quarter of 2015, which ended on 31 March 2015.
The company’s revenue dropped 9% to SGD29.7 million in the second quarter of 2015, compared with SGD32.48 million in the second quarter of 2014. The lower earnings were due to the decrease in revenue registered by Marco Polo Marine’s ship chartering operations following lower utilisation of its tug and barge fleet amid continuing weak shipping demand in the regional market for the shipment of coal and other commodities.
Lower earnings were also attributed to the deconsolidation of Indonesia-based offshore services provider PT Pelayaran Nasional Bina Buana Raya (BBR) and transitional deployment of one of Marco Polo Marine’s offshore support vessel (OSVs) to another location following a change in charterers.
However, Marco Polo Marine saw a decrease in its administrative expenses, which dropped 13% to SGD2.25 million in the second quarter of 2015, compared with SGD2.57 million in the second quarter of 2014, as well as a 51% decrease y/y in finance cost in the second quarter of 2015 to SGD0.8 million.
The lower costs were attributed to the deconsolidation of BBR’s administrative expenses and other operating expenses, as well as its interest expense after the company ceased to have controlling interest in BBR following the renunciation of its rights entitlement in BBR to Singapore-based offshore vessel-builder Nam Cheong on 13 November 2014.
Moreover, the capitalisation of interest of SGD0.4 million in the second quarter of 2015 as part of the asset cost of the rig under construction further offset the finance cost.
Meanwhile, Marco Polo Marine expects its ship chartering operation business segment to remain the main driving force behind its financial performance of the group for the next 12 months. The company also has drawn plans to diversify its OSV fleet to comprise maintenance and development vessels to complement its exploration vessels such as anchor handling tug supply (AHTS). In the meantime, Marco Polo Marine’s second maintenance work vessel is expected to be commence operations in mid-June 2015 in a long-term chartering contract.