Marco Polo Marine Q3 profit plunges 74%

Singapore-listed Marco Polo Marine registered a third quarter profit of SGD344,000 ($248,700), a drop of 74% compared to the gain of SGD1.34m in the previous corresponding period.

Revenue during the quarter also fell 17% year-on-year to SGD22.31m due chiefly to the decrease in contributions from its ship chartering operations which more than offset the increase in revenue from its shipbuilding and repair operations.

Marco Polo Marine said that for the financial quarter under review, oil prices had resumed its volatility amidst uncertain political developments and socio-economic conditions globally.

“Without a broad based recovery in sight against the backdrop of a tepid global economy, sentiments and demand for vessels are expected to continue to be adversely impacted with the offshore oil and gas exploration activities in the region remain muted,” the company commented.

The company’s ship chartering operations are still expected to be the main driving force behind the financial performace for the next 12 months, while the shipbuilding and repair businesses are expected to continue to be affected by global subdued economic outlook and strong competition.

“With regard to the rig under construction, the construction of the premium jack-up rig is progressing as planned. Amidst the persistent weakness of oil prices and cut-back on exploration work by operators, market daily charter rates for jack-up rigs are expected to continue to be subdued and suppressed due to competition from existing and soon-to-be delivered new rigs,” it said.