Singapore’s Marco Polo Marine has started its 2017 financial year with a profit in the first quarter thanks to a boost in other operating income and share of profit in joint ventures, despite a drop in revenue.

Profit for its first quarter ended 31 December 2016 was recorded at SGD3.39m ($2.38m), a jump from SGD19,000 in the previous corresponding period.

The first quarter profit was lifted by higher operating income resulting from unrealised foreign exchange gain, and positive contribution from jointly controlled entity principally engaged in the chartering of maintenance work vessel.

First quarter revenue, however, fell by 33% year-on-year to SGD11.41m due chiefly to lower utilisation and charter rate for the group’s offshore fleet and reduced shipbuilding projects.

Singapore-listed Marco Polo Marine said the group continues to step up on cost containment efforts in the midst of the challenging offshore marine industry.

In October 2016, noteholders of the company approved a restructuring of the company’s SGD50m 5.57% fixed rate notes due 2016, with noteholders granting an additional three years to redeem the notes.

“In respect of all the other secured loans of the group, the company is currently working very closely with the relevant banks in coming to terms on the pre-conditions to extend the tenure of such secured loans, which, if carried out, will defer a significant portion of the current borrowings of the group to non-current liabilities,” Marco Polo Marine said.

Due to the restructuring of Marco Polo Marine, its auditor Mazars LLP has cast doubts on the ability of the company to continue as a going concern in view of its net liabilities and a loss in its 2016 financial year.

Source: seatrade-maritime.com