Will Marco Polo Marine sink or swim? The shares of the beleaguered marine logistic group were actively traded recently due to the massive stake disposal (10.29%) by UOB and the emergence of white knight, the Teo family, founders of the Super Group. For the stakeholders, the most pertinent question now is whether this counter has finally seen light at end of the tunnel?
The past two years had been a nightmare for Marco Polo Marine as it also engaged in an epic legal dispute with big boy, Sembcorp Marine over the former’s unilateral termination of a US$214.3 million contract for building a jack-up rig that was under construction at Sembcorp Marine’s PPL Shipyard. It was only in November 2017 that both parties reached an agreement in favour of PPL Shipyard. Marco Polo was also forced to withdraw its claims against PPL.
The significant upheaval in the shareholdings came about after the successful completion of the debt restructuring exercise in which new shares were issued to creditors and new investors. On looking back, the marine logistic company probably would not have gotten itself into this mess had it not ventured into the offshore sector in 2010. But then again, nobody could have foreseen the slump in oil price leading to the protracted ailing oil and gas sector.
As a marine logistic company, the ship chartering operations of Marco Polo Marine comprises of two divisions – Tug and Barge Division and Offshore Division. The offshore division was established in end 2010 with the objective of venturing into the Offshore oil and gas sector. The offshore division has expanded steadily to its current sizeable fleet of 13 off-shore vessels. Marco Polo also carries out ship building, ship repairs and conversions, as well as oil and gas fabrications through its shipyard which is located at Batam, Indonesia.
[This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
You can sign up as member of SG Wealth Builder. In addition, new members signing up now will receive a bonus investment report (16 pages) on Singapore stocks! The membership benefits include:
1) Access to the latest premium articles of SG Wealth Builder
2) Email notifications of latest blog articles
3) Access to Wealth Forum for investment ideas and discussion
4) Free bonus investment report
5) Request for coverage on stocks, insurance and other personal financial topics
6) Comment in articles and Wealth Forum
7) Future network opportunities
Note: After payment is made, you will be prompted with registration form to create your userid and personal password.
Pay Per Post
If you do not wish to apply for membership but would like to access the full article, you can pay a one-off fee of just $10 to view this article through the following button:
Subscribe to Blog via Email
SG Wealth Builder