Margin expansion in the Owned Vessel Division continued to boost profitability, despite a slow quarter where Total Revenue fell by 9.2%YOY from US$18.4 million in 1Q2024 to US$16.7 million in 1Q2025. The lower revenue stemmed from a slower than expected start after the monsoon season which primarily affected the Chartering Division.

Owned Vessel Division

The Owned Vessel Division continued to perform well as the high tier vessels and mid-tier DP vessels saw improved utilization. Gross Profit from Owned Vessel jumped by 55.8%YOY to US$6.1 million for 1Q2025 as compared to 1Q2024, generated from revenues of US$14.8 million (+6.1%YOY). With more PSVs working, Owned Vessel gross margin has continued to increase to 41.2% in 1Q2025 from 28.1% in 1Q2024. Average charter rates for 1Q2025 were 31% higher than 1Q2024, due to a larger number of high yielding vessels in the Company’s fleet.

The lower end of the mid-tier segment did not fare as well in 1Q2025, as some mid-tier vessels came off spot contracts. OSV demand was slow during the quarter, with some project delays, even though there were some ongoing tenders. Fleet utilization dropped to 57% in 1Q2025 as compared to 63% in 4Q2024. Two additional HLBs were delivered in February and March 2025 which only commenced operations in April 2025.

Chartering Division and Other Services

A longer than expected hiatus for the monsoon season led to a 70%YOY drop in Chartering Division Revenues to US$0.9 for 1Q2025 compared to 1Q2024. Revenue from Other Services also recorded a decline of 30.5%YOY to US$1.0 million upon the completion of a contract.Direct Expenses and Gross Profit

Owned Vessel Direct Expenses reduced by 13.3%YOY to US$8.7 million from US$10.1 million in 1Q2024. There were savings in maintenance costs (-28.2%YOY), which fell from US$2.4 million in 1Q2024 to US$1.7 million in 1Q2025, due to the absence of some one-off preparation costs in 2024 for international contracts. Owing to the sale of 3 vessels during 2024, Operations cost fell by 31.0%YOY, from US$1.1 million in 1Q2024 to US$0.8 million in 1Q2025 while Crewing expenses also decreased by 7%YOY, from US$2.5 million in 1Q2024 to US$2.4 million. Bunker costs were maintained at US$0.5 million (+1.8%YOY), reflecting a stable oil price and a low number of vessel mobilizations.

As a result of a higher concentration in Dynamic Positioning (DP) vessels which has enjoyed a stronger charter rate increase, the Gross Profit margin has risen from 27.1% in 1Q2024 to 39.3% in 1Q2025, demonstrating the underlying resilience of the fleet despite the near-term delays in project commencements.

Indirect Expenses and Operating Profit

Total Indirect Expense rose by 6.5%YOY to US$2.4 million in 1Q2025 as compared to US$2.3 million in 1Q2024. This increase was primarily driven by the increase in marketing expenses and staff salaries.

With the growing participation in international tenders, Marketing Expenses in 1Q2025 doubled to US$0.17 million (+125.3%YOY) from US$0.08 million in 1Q2024. Staff Salary contributed US$0.09 million to the increase, rising 5.2%YOY to US$1.8 million in 1Q2025, due to an expansion of permanent employees and higher salaries.

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