Marco Polo Marine, a prominent player in the offshore and marine sector, reported a significant revenue boost from its new commissioning service operation vessel (CSOV) in the nine months ending September 2025. The company earned S$11m from new offshore wind vessels, with the CSOV alone contributing approximately S$6m to S$7m since its deployment in April. This development comes amidst an easing bank financing landscape, which could facilitate further fleet expansions, a CGS International report revealed.
The company is actively considering the addition of a second CSOV, with a contract expected in the second half of 2025. This potential expansion aligns with Marco Polo Marine’s strategy to divest older vessels and reinvest in the offshore wind sector. The company anticipates that the construction of the new vessel will take about two years, with contributions to revenue likely starting by the end of 2027.
Despite the positive outlook, Marco Polo Marine faces challenges in its shipyard operations. Yard utilisation improved to 88% in the third quarter of 2025, yet revenue from this segment dropped by 19% year-on-year due to a lack of shipbuilding activity. The company has adjusted its earnings forecast for the fiscal year 2025, reducing expected earnings per share by 12% due to weaker yard revenues and lower fleet utilisation.
CGS International remains optimistic about Marco Polo Marine’s growth, reiterating an “Add” recommendation with a target price increase to S$0.08, reflecting a 21.2% upside. Key catalysts for this re-rating include potential contract wins for the second CSOV and higher fleet utilisation. However, risks such as lower-than-expected yard utilisation and project delays could impact demand for vessels.
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