• Marco Polo Marine has a star performer in its fleet of vessels -- the MP Wind Archer which was completed in late 2024. • A Commissioning Service Operation Vessel (CSOV), it has a 3-year charter contract starting in late 2025 from Vestas, a leading Danish wind turbine manufacturer, for deployment in Northeast Asian wind farms. The charter provides not only long-term revenue visibility but also premium pricing for the specialized vessel.  • Wind Archer started operating in mid-April 2025 with a 5-month charter to Siemens Gamesa for an offshore wind project in Taiwan.
 Photo: Marco PoloLooking ahead, things are shaping up nicely for Marco Polo. • The CSOV and three newly acquired crew transfer vessels (CTVs) in Taiwan are expected to contribute meaningfully from 4QFY25. And a new and fourth dry dock in Marco Polo's Batam shipyard has just clinched initial deals for ship repair. • Read CGS's latest take on Marco Polo below .... |
Excerpts from CGS report
Analysts: Meghana KANDE & LIM Siew Khee
Marco Polo Marine (MPM SP)
| Fleet expansion on the line |
■ At its analyst briefing, Marco Polo said its CSOV is contributing well, with minimal setup issues. A second CSOV could be announced soon, we think.
■ We believe an easing bank financing landscape for OSV players could drive further fleet additions for MPM. |
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| 9MFY9/25: CSOV revenue pick-up was the key highlight |
Marco Polo Marine (MPM) earned S$11m from the addition of new offshore wind vessels in 9MFY9/25.
We estimate c.S$6m-7m of this came from its new commissioning service operation vessel (CSOV), deployed since mid-Apr 25.
Group 9MFY25 revenue formed 66% of our and Bloomberg consensus’ FY25F estimates, lower than our expected c.70%.
Adjusted for the impact of new vessels and the lack of Taiwan recharter income earned in 2024, we think revenue from vessels chartered to the oil & gas industry fell yoy due to:
1) lower utilisation rates yoy, and
2) sale of 2 tugs in 3QFY25.
In its analyst briefing, management noted that some vessels were sent for drydocking due to delays in projects, which could pick up from 1QFY26F.
3QFY25 GM was up 2% pts yoy to 44% on sales mix shift towards ship repair work and away from low-value third-party charters.
| Vessel additions could be on the line |
Following the successful execution of MPM’s first newbuild CSOV and its active talks with clients, we expect a contract for a second CSOV to come through in 2HCY25F.
We estimate construction time of about 2 years, with contribution likely to start from endCY27F. MPM has been divesting its older vessels (such as tugs) to redeploy capital into the offshore wind sector.
In addition, we think the easing bank financing landscape bodes well for players such as MPM, with its strong net cash balance and chartered fleet.
We see upside to our FY26F revenue forecasts if MPM is able to add new vessels to its fleet.
| Still waiting for a better yard outlook |
Yard utilisation improved sequentially to 88% in 3QFY25 vs. 73% in 2QFY25.
But the 19% yoy drop in 3QFY25 yard revenue was due to lack of shipbuilding activity.
MPM noted a pickup in enquiries for ship repairs but newbuild orders could stay subdued.
We cut our FY25F EPS by 12% to account for weaker yard revenues and lower fleet utilisation, partly offset by gross margin expansion from high-margin repairs and CSOV contribution.
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