Singapore is internationally recognized as one of the world’s top maritime ports, accorded as the world’s Top Maritime Centre for 8 consecutive years by the Xinhua-Baltic International Shipping Centre Development (ISDC) Index and the world’s Top Leading Maritime Capital Of The World for 4 consecutive years by Menon Economic’s Leading Maritime Capitals Of the World report. With such accolades, Singapore is home to many marine and shipping companies. While most Singaporeans are familiar with Sembcorp Marine and Keppel O&M, Singapore is also host to many smaller players in the marine industry that all play a part in our bustling port.
One of these marine companies is Marco Polo Marine (SGX: 5LY) which has been listed on the SGX Mainboard since 2007. Macro Polo Marine operates regionally, with a significant presence in Indonesia. The company focuses on integrated marine logistics and engages mainly in shipping and shipyard operations. Their shipping operations involve the chartering of Offshore Supply Vessels (OSV) for deployment in regional waters and the chartering of tug boats and barges. As of 1HFY2021, they have 11 OSVs and 2 Maintenance Work Vessels (MWVs) in operation. For shipyard operations, the company has a shipyard located in Batam, Indonesia that can undertake projects involving mid-sized and sophisticated vessels.
In June 2021, the company also announced its plans to extend their dry dock 1 which would increase its capacity for ship repairs by 20%. This is scheduled to complete by January 2022 and expected to contribute to the bottom line from 2QFY2022. The company also announced in May 2021 their plan to increased their stake in one of their Indonesia listed entity – PT BBR to 72%. This would increase Macro Polo’s presence in Indonesia.
Aside from expanding their ship repairs capacity where they seen growth in recurrent customers and their main focus on shipping and shipyard activities, Macro Polo is also diversifying to renewables by leveraging their existing capabilities to enter into the sustainables sectors. This includes securing contracts to construct 2 smart fish farms as well as deploying vessels to work on windfarm projects.
For those interested to find out more about the marine industry or interested to invest in marine companies, here are 5 things to know about Macro Polo’s business.
Ethical Persuader: Match your words and deedsAug. 17, 2021
mm2 Asia to pursue Kingsmead transaction and cinema IPO options in parallelAug. 10, 2021