The project marks the company&rsquo s strategic expansion into high-value, specialised vessel construction

 

[SINGAPORE] Integrated marine logistics company   Marco Polo Marine   : 5LY +0.97% has secured a NT$4.7 billion (S$198 million) contact from the National Academy of Marine Research, a research institute under the Ocean Affairs Council of Taiwan, to build an advanced research vessel. 

 

Secured by its wholly owned subsidiary Marco Polo Shipyard, the project to build a 4,000 gross tonne oceanographic research vessel represents &ldquo the largest contract win in the division&rsquo s history&rdquo , the mainboard-listed company said on Thursday (Nov 13). 

 

&ldquo This contract award reinforces Marco Polo Marine&rsquo s strategic expansion into high-value, specialised vessel construction that supports marine science, research and the blue economy, as well as complements the group&rsquo s existing growth in offshore wind vessel segments, including crew transfer vessels and commissioning service operation vessels,&rdquo the company said.

 

The project will be fully self-financed through Marco Polo Marine&rsquo s internal cashflows and does not require any project-specific debt, it added. 

 

Sean Lee, chief executive officer of Marco Polo Marine, said that the contract represents a &ldquo landmark achievement for our shipbuilding division&rdquo . 

 

&ldquo This project positions us firmly within the marine research and blue economy sectors, adding a valuable dimension to our portfolio alongside our established offshore wind vessel operations,&rdquo he added. 

 

The vessel will be built over 1,460 days &ndash or about four years &ndash at the group&rsquo s shipyard in Batam, Indonesia, with engineering and commercial support provided from Singapore, Marco Polo Marine said. 

 

It will be designed by Skipteknisk, a renowned Norwegian company that has designed similar research vessels, the company added. 

 

The vessel will feature a Dynamic Positioning 2 system and diesel-electric propulsion with twin azimuth thrusters, along with bow and retractable thrusters, the group said. 

 

It will be equipped with green and sustainability features, including a battery energy storage system and waste heat recovery system, and will be designed for low-noise operations to minimise acoustic output while the vessel performs sensitive research operations. 

 

To support a wide range of scientific missions, the vessel will also be equipped with advanced wet and dry laboratories, multibeam sonar systems, conductivity, temperature and depth sensors, as well as remotely operated vehicle A-frames, the group said. 

From CGSI :  Offshore & Marine   - 

Structural tailwinds are intact

We reiterate our sector Overweight call on offshore marine given structural factors and attractive valuations. Tight vessel supply and financing landscape are keeping charter rates resilient, while utilisaton also remains high. We see long-term growth for Marco Polo and Pacific Radiance on the back of their fleet expansion plans for both oil gas and offshore wind. We think the sector is bound for further re-rating and raise our TPs for MPM and PACRA to S$0.10 and S$0.14 respectively, both based on 10x fwd P/E.

Marco Polo Marine has added two new Anchor Handling Tug Supply (AHTS) vessels to its fleet, bringing its offshore fleet to a total of 21 vessels.

 

The combined value of the two vessels is US$34 million, and is expected to join the fleet in 2026.

 

Marco Polo Marine says that these new vessels are designed to primarily support oil & gas activities in the Southeast Asian region. They are also capable of being deployed to Northeast Asia to support offshore wind farm projects, subject to opportunities.

 

AHTS 1 will be 71% owned by Marco Polo Marine&rsquo s indirect subsidiary Pelayaran Nasional Bina Buana Raya. It has a length overall (LOA) of 60.8 metres, a breadth of 16 metres, a bollard pull of 80 tonnes, and 6,000 brake horsepower (BHP). It features Dynamic Positioning (DP2) and Fire Fighting Class 1 capabilities, says the group.

 

AHTS 2 will be Singapore-registered, and will be a larger vessel at LOA 76 metres, a breadth of 18.5 metres, a significant bollard pull of 135 tonnes, and 10,800 BHP. It is also equipped with DP2 and Fire Fighting Class 1 systems.