Marco Polo Marine Revenue Drops for Q1

Relative to Q1FY2016, the Ship Chartering Operations’ revenue of the Group decreased by 31% to S$4.4 million in Q1FY2017. The decrease was mainly due to the lower utilization and charter rate for the Group’s offshore fleet.

The Ship Building & Repair Operations of the Group also recorded a decrease in revenue of 34% in Q1FY2017 relative to Q1FY2016. The decrease was due mainly to reduced ship building projects.

The Group recorded a gross profit margin of 34% in Q1FY2017 relative to that of 30% in Q1FY2017, chiefly due to reduced project costs.

The Group’s other operating income increased by S$3.86 million to S$3.9 million in Q1FY2017 from S$54,000 in Q1Y2016. The increase was mainly due to an unrealised foreign exchange gain recorded in Q1FY2017 compared to an unrealised foreign exchange loss sustained in Q1FY2016 recorded under “Other operating expenses”.

In line with reduced business activities and as a result of cost containment measures, the Group’s administrative expenses decreased by S$0.1 million or 4% to S$1.6 million in Q1FY2017 from S$1.7 million in Q1FY2016.

The Group’s other operating expenses decreased by S$0.7 million to S$0.7 million in Q1FY2017 and from S$1.4 million in Q1FY2016, attributed largely to the unrealised foreign exchange loss recorded in Q1FY2016.

Due to increased borrowings and higher bond interest rate, the finance costs of the Group increased by S$0.9 million or 74% to S$2.0 million in in Q1FY2017 from S$1.1 million in Q1FY2016.