UOB Kay Hian Research has given a positive recommendation for Marco Polo Marine (MPM SP), highlighting the company’s promising outlook due to higher charter rates and its expansion into Korea.
Given the increase in oil and gas activities and the favourable oil prices, MPM is anticipated to maintain a strong demand and favourable charter rates for its Offshore Support Vessels (OSVs), which are now at a nine-year high.
The limited increase in the number of ships in the OSV business is expected to maintain high daily rates.
With the start of new offshore wind projects, MPM is in a good position to take advantage of growth prospects in the Asia-Pacific (APAC) area using its OSVs and new Construction Service Operation Vessels (CSOV). The airline is also planning to make its first charter in Korea beginning in the fourth quarter of 2024.
UOB Kay Hian Research continues to recommend buying MPM and has increased the target price to S$0.086, indicating a favourable outlook for the firm.