Macro Polo

Macro Polo: Results largely in-line, as Grp registered a 3% rise in net profit at $4.49m for 1Q13, despite a 38 % drop in turnover of $15.16m. Fall in rev was largely due to grp’s shipyard business, which was weighed down by ship-building operations, which experienced a decrease in rev by 92.1% to $1.1m. On the ship-chartering front, rev -5.2% to $5.5m, as one of the group's offshore vessels was docked for its first mandatory special survey and other maintenance works. With a higher proportion of ship-repair revenue - which generally commands a higher yield relative to ship-building, gross profit margin rose to 38.6% from 25.2% yoy. Going forward, frp note performance was consistent with its corporate strategies premised on four growth platforms which will continue to underpin its performance moving forward. Caution however that the global macroeconomic environment remains uncertain albeit showing signs of recovery and grp remains watchful with regard to mkt conditions and its ensuing operational development and expansion plans. Barring any unforeseen circumstances, grp optimistic about its performance for the next 12 mths.