Marco Polo Marine reportsnet profit of S$4.5 million for Q1FY2013
Singapore Exchange Mainboard-listed Marco Polo Marine Ltd together with its subsidiaries, a growing regional integrated marine logistic group, announces its financial results for the first quarter ended 31 December 2012.
The Group’s revenue decreased by 38.2% to S$15.2 million in Q1FY2013 from S$24.6 million in Q1FY2012.
While the Ship Repair Operation’s revenue grew by 75.5% to S$8.6 million in Q1FY2013 from S$4.9 million in Q1FY2012, the overall revenue generated by our Shipyard Business was weighed down by the Ship Building Operations, which experienced a decrease in revenue by 92.1% to S$1.1 million in Q1FY2013 from S$13.9 million in Q1FY2012 due to the slower progress in new-build orders.
On the ship chartering front, as one of the Group’s offshore vessels was docked for her first mandatory special survey and other maintenance works due, the Group’s ship chartering revenue decreased by 5.2% to S$5.5 million in Q1FY2013 from S$5.8 million in Q1FY2012.
In tandem with the decrease in the Group’s revenue for Q1FY2013, the Group’s gross profit decreased by 5.6% to S$5.9 million in Q1FY2013 from S$6.2 million in Q1FY2012.
Notwithstanding which, the gross profit margin of the Group rose to 38.6% for Q1FY2013 compared to 25.2% for Q1FY2012 due to a higher proportion of ship repair revenue (which generally commands a higher yield relative to ship building revenue) to ship building revenue being recognized in Q1FY2013 compared to that in Q1FY2012.
Moreover, despite the uncertain and challenging environment, the net profit attributable to the shareholders of the Group increased by 3.2% to S$4.5 million for Q1FY2013 from S$4.4 million for Q1FY2012. The increase in gross profit margin coupled with a turnaround in the share of results of BBR, from a loss of S$0.27 million for Q1FY2012 to a profit of S$0.62 million for Q1FY2013, resulted in the Group’s net profit margin increasing from 17.7% for Q1FY2012 to 29.6% for Q1FY2013.
With BBR successfully publicly listed on Indonesian Stock Exchange on 9 January 2013 and the Group being the single largest shareholder and exerting de facto control over BBR’s operations, BBR, with effective from Q2FY2013 or specifically 9 January 2013, becomes a subsidiary of the Group and will have its financial results consolidated with the Group based on Financial Reporting Standard 27.
The share of results from jointly controlled companies also increased by 57.5% in Q1FY2013 relative to Q1FY2012, due mainly to the contribution from the recently forged jointly controlled entity which engages in the bunkering logistics business.
