Marco Polo Marine posts $11.9m full year loss

The Singapore-listed offshore marine services firm took a SGD16.94m ($11.9m) loss for its 2016 financial year, as against the profit of SGD8.52m in the previous financial year.

Revenue plunged by 50% year-on-year to SGD46.94m mainly due to lower utilisation and charter rate of the group’s fleet of tugboats, barges and OSVs due to weakened demand in the marine and offshore industry.

“Overall, the revenue of the group by its geographical segments in Singapore, Indonesia, Thailand, Malaysia and other Asian countries was decreased mainly due to oil price crisis which led to lack of oil exploration projects and weak demand on deployment of offshore supply vessels,” Marco Polo Marine commented.

On the back of dwindling cashflow, Marco Polo Marine has sought and gotten majority approval from noteholders of SGD50m 5.75% fixed rate notes issued under a SGD300m multicurrency term notes program in extending the maturity of the notes by three years from 18 October 2016.

In exchange for extending the notes maturity, bondholders will receive additional interest of 1.5% per annum payable on the notes, and grant of a second ranking mortgage over 152,750 sq m of land in Batam, Indonesia.

“The group expects the market conditions for the oil and gas industry and hence the offshore industry to remain tough and challenging for the next 12 months. The group will continue to be prudent in its financial management whilst actively seeking new business opportunities,” the company said.