Banle Group (NASDAQ: BANL) (Banle or the Group), a reputable marine fuel logistic company based in the Asia Pacific, announced today it will file its Interim report on Form 6-K for the year ended June 30, 2024 on Thursday, September 12, 2024.
Banle Group will host a webcast on Friday, September 13, 2024, at 10:00 am HKT or Thursday, September 12, 2024, at 10:00 pm ET. Company management will discuss the Group’s business strategies and recent developments at the webcast.
Company management attending: Mr. Teck Lim Chia – Chairman & Chief Executive Officer Mr. Raymond Chiu – Chief Financial Officer Ms. Venus Zhao – Investor Relations & Public Relations Director
About the Banle Group CBL International Limited (Nasdaq: BANL) is the listing vehicle of Banle Group, a reputable marine fuel logistic company based in the Asia Pacific region that was established in 2015. We are committed to providing customers with one-stop solution for vessel refueling, which is referred to as bunkering facilitator in the bunkering industry. We facilitate vessel refueling mainly through local physical suppliers in over 60 major ports covering Belgium, China, Hong Kong, India, Japan, Korea, Malaysia, Mauritius, Panama, the Philippines, Singapore, Taiwan, Thailand, Turkey and Vietnam, as of August 28, 2024. The Group actively promotes the use of sustainable fuels and is awarded with the ISCC EU and ISCC Plus certifications.
Solidifying Leadership in the Marine Fuel Bunkering Industry
CBL International Limited (the Company or CBL) (NASDAQ: BANL), the listing vehicle of Banle Group (Banle or the Group), a reputable marine fuel logistic company in the Asia-Pacific region, proudly announces a significant milestone by expanding its global port coverage to over 60 ports across fourteen countries and regions in four continents.
This development underscores Banle’s commitment to expanding its global presence and entering new markets, demonstrating the company’s continued efforts to open new service ports and increase coverage for both existing and new customers. The company now provides bunkering services in Belgium, China, Hong Kong, India, Japan, Korea, Malaysia, Mauritius, Panama, Singapore, Taiwan, Thailand, Turkey, and Vietnam, representing a 70% increase in port coverage since its Nasdaq listing in March 2023, solidifying Banle’s position as a major player in the industry.
The Group’s footprint includes nine out of the top ten container ports globally by throughput volume in 2023, highlighting its dominance in key maritime hubs. The Asia Pacific region, accounting for 70% of global container port throughput, remains a key focus for Banle, while the company continues to expand its presence in Europe and other regions.
The company is actively preparing to capitalize on the growing demand for greener marine fuels, driven by international regulations like the FuelEU Maritime initiative and the IMO’s strategy for greenhouse gas reduction. Banle has obtained the required ISCC EU and ISCC Plus certifications to comply with these regulations.
As a pioneer in providing stable biofuel supply at major ports, Banle has achieved key milestones in biofuel bunkering services, including:
— July 14, 2023: Commencement of biofuel supply in Hong Kong. — September 5, 2023: First export to China cargo supply. — March 15, 2024: Introduction of biofuel supply in Guangzhou, China. — April 13, 2024: Launch of biofuel supply in Shenzhen, China (Yantian). — June 28, 2024: Inaugural biofuel supply in Port Klang, Malaysia.
According to BIMCO, the container shipping market has exceeded growth expectations, with forecasts predicting a 5 – 6% increase in container volumes for 2024 and a 3 – 4% increase for 2025. Banle is well-positioned to capitalize on this growth, continuing to facilitate essential bunkering services that support the efficient and profitable operations of container liners globally.
“Since our Nasdaq listing, we have made remarkable strides in expanding our port coverage and enhancing our service offerings to meet the growing demands of our customers, the international shipping companies,” said Mr. Teck Lim Chia, Chairman & CEO of Banle Group. “Our expansion into Europe, with establishments in Ireland, underlines our commitment to developing our green marine fuels business, which is critical for our long-term sustainability goals.”
About the Banle Group CBL International Limited (Nasdaq: BANL) is the listing vehicle of Banle Group, a reputable marine fuel logistic company based in the Asia Pacific region that was established in 2015. We are committed to providing customers with one stop solution for vessel refuelling. Banle Group’s business activities are primarily focused in over 60 major ports covering Belgium, China, Hong Kong, India, Japan, Korea, Malaysia, Mauritius, Panama, Singapore, Taiwan, Thailand, Turkey and Vietnam as of 28 August 2024. The Group actively promotes the use of alternative fuels and is awarded with the ISCC EU and ISCC Plus certifications.
Forward-Looking Statements Certain statements in this announcement are not historical facts but are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “should,” “would,” “plan,” “future,” “outlook,” “potential,” “project” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. They involve known and unknown risks and uncertainties and are based on various assumptions, whether or not identified in this press release and on current expectations of BANL’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of BANL. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, markets, financial, political and legal conditions, geopolitical disruptions and other events that result in material changes in fuel prices. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
PT Wintermar Offshore Marine Tbk (WINS:JK) has announced results for 1H2024. Wintermar’s Gross Profit for 1H2024 jumped 90.4%YOY to US$10.4million from US$5.4million in 1H2023, driven by rising charter rates on Owned Vessels, while Attributable Net Profit reached US$13.4million for the same period as the Company booked a large gain on sale of vessels.
Wintermar recently secured a long term contract for two PSVs working in Indonesia.
Total Revenues rose steadily by 22.9%YOY to US$38.3million for 1H2024, contributed by a strong 41.5% YOY increase in Owned Vessel revenue which rose to US$27.2million in 1H2024 compared to US$19.2million in 1H2023. This is attributable to the continued rise in OSV charter rates which on average are 39.8% higher in 1H2024 compared to the average for 1H2023.
Owned Vessel Division
In the first half of 2024, Gross Profit from Owned Vessel jumped by 153.9%YOY to US$8.0 million on the back of Owned Vessel Revenue of US$27.2 million compared to US$19.2 million in 1H2023. The significant growth was primarily due to higher charter rates along with an increase in fleet utilization from 61% in 1H2023 to 67% in 1H2024.
2Q2024 Revenue remained strong despite the sale of one Platform Supply Vessel (PSV), one Fast Utility Vessel (FUV), and one Anchor Handling Tug (AHT) during the quarter, reflecting the strength of the underlying market as higher charter rates were able to compensate for fewer operational vessels in 2Q2024 compared to 1Q2024.
There were some positive developments in the High Tier Vessel segment in the second quarter. Two PSVs ended a long term contract at the end of April 2024, after which one was re-contracted at market rates more than double of the previous charter rate, while the other underwent major docking. An older PSV was sold in April at an opportunistic price at nearly double of her book value. Despite having sold three vessels in 2Q2024, the gross profit for 2Q2024 was slightly higher on a QOQ basis at US$ 4.1million compared to US$3.9million in 1Q2024. This reflects the strength of the market demand for these vessels.
Owned Vessel Direct Expenses rose by 19.3% YOY, reaching US$19.2 million from US$16.1 million in 1H2023. The increase was primarily due to higher maintenance costs (+ 78.2% YOY) from US$2.3 million in 1H2023 to US$4.1 million in 1H2024. This arose due to the preparation of a higher tier vessel for overseas work and a major docking for one PSV following the end of her long-term contract. Operational Costs grew by 19.0% YOY, from US$1.9 million in 1H2023 to US$2.3 million in 1H2024, due to a growing number of vessels working outside Indonesia where agency and other costs are higher. Crewing Expenses also increased by 15.3% YOY, rising to US$5.0 million from US$4.4 million in 1H2023, accounting for higher salary and allowances for crew working internationally.
Chartering Division and Other Services
The Chartering division experienced a 4.5%YOY growth in margins which resulted in slightly higher Gross Profit of US$0.7million despite lower Revenues of US$7.5 million (-8.1%YOY) in 1H2024. This was due to a lower number of chartered vessels, after the Company purchased a previously chartered vessel.
Similarly, Gross Profit from the Other Services Division rose slightly to US$1.64million in 1H2024 compared to US$1.62million in 1H2023 despite a 4.5%YOY decline in revenue to US$3.7million.
Total Gross Profit for 1H2024 stood at US$10,4 million up by 91.4%, almost doubling from US$5.4 million in 1H2023.
Indirect Expenses and Operating Profit
Total Indirect Expenses increased by 53.6%YOY, rising from US$3.0 million in 1H2023 to US$4.6 million in 1H2024. This increase was primarily driven by increase in staff salaries and employee benefits.
Staff salaries rose by 35.9% YOY, from US$2.5 million in 1H2023 to US$3.4 million in 1H2024, due to a growing workforce in line with business expansion and bonuses paid in 2Q2024. Employee benefits reverted back to an expense of US$0.2 million in 1H2024, after an adjustment in 2023 to comply with changes in the Omnibus Law resulted in reversal from an income of US$0.2 million in 1H2023.
Operating Profit for 1H2024 was US$5.7 million, which increased 136.0% compared to the same periode in previous year. The operating margin rose to 15.0% in 1H2024 compared to 7.8% in 1H2023.
Other Income, Expenses and Net Attributable Profit
Interest Expenses continued to fall from US$0.55 million in 1H2023 to US$0.45 million in 1H2024(-17.2%YOY), as outstanding bank debt shrank. The Company is now cash positive, leading to a six-fold increase in interest income from US$0.02 million in 1H2023 to US$0.15 million in 1H2024. Cash Inflows came from improved operations and vessel sales.
Equity in net earnings of associates saw a turnaround, moving from a loss of US$0.1 million in 1H2023 to an income of US$0.8 million in 1H2024. This improvement was due to better operational performance from our associated companies as the industry recovers.
The sale of vessels led to a significant gain from sale of fixed asset of US$17.4 million in 1H2024, which crystallised the monetary value of the fleet. This contributed cash flow which management is actively seeking to reinvest into similar but younger vessels.
The strong performance of the business resulted in a net income attributable to shareholders of US$13.4 million for 1H2024, compared to US$1.1 million in the same period of 2023. Excluding the impact of vessel sales, the core profit for the 1H2024 period amounted to US$4.9million. On a quarter to quarter comparison, excluding the impact of vessel sales, 2Q2024 recorded core net profit of US$2.8million as compared to USD2.1million in 1Q2024.
The group’s EBITDA also jumped by 46.5% YOY for 1H2024, reaching US$12.7 million.
Industry Outlook
According to the International Energy Forum (IEF) and S&P Global, oil demand is expected to reach nearly 110 million barrels per day (mb/d) by 2030 before gradually declining to approximately 100 mb/d by 2050. This trajectory highlights the critical need for sustained investment in the energy sector, as there is a growing awareness of the significant energy requirements in the interim period as the world transitions from fossil fuels to renewable energy. The high demand for steel and rare minerals to produce electric vehicles and batteries, coupled with the recent slowdown in electric vehicle (EV) adoption highlight the uncertainty of future oil demand.
In the past half year, the offshore oil sector has benefitted from more favorable economic conditions, as lower breakeven costs for upstream projects encouraged continued investment in offshore oil and gas exploration, particularly in regions rich in untapped reserves. Concurrently, the Offshore Support Vessel (OSV) market is experiencing dynamic growth driven by demand from escalating offshore activities in the oil and gas sectors globally. Within the offshore sector, there is an emphasis on deepwater and ultra-deepwater exploration which has heightened the need for advanced OSVs capable of operating in these challenging environments.
According to Rystad Energy’s latest analysis, Offshore gas production in Southeast Asia is set to unlock a US$100 billion potential, driven by a surge of planned final investment decisions (FIDs) expected by 2028. This marks a significant increase over the US$45 billion-worth of projects sanctioned between 2014 to 2023. Deepwater developments, significant offshore Indonesian and Malaysian discoveries and advancements in carbon capture and storage (CCS) bode well for the longer-term sustainability of offshore activity in the region.
Looking ahead, a major issue facing the offshore support vessel (OSV) industry is the scarcity of new vessel constructions and exacerbated by an aging fleet, particularly among the larger vessels crucial for deepwater operations. This condition makes the market even tighter, pushing charter rates higher due to high demand and limited new vessel entries.
Business Prospects
Wintermar is strategically strengthening its financial position and expanding its asset base. In the first six months of 2024, the Company invested in three additional vessels worth US$13.9 million, of which two are new built heavy load barges which will be delivered at the end of this year. These investments position Wintermar’s fleet in segments with anticipated higher demand in the coming years. These vessels will be required as the initial drilling and exploration projects which recently began gradually move into the construction and production phases of the cycle.
In June, the Company secured a two-year project for two PSVs at charter rates more than double of the average rate in 2023 for similar vessels. This contributed to a jump in the contracts on hand at the end of June 2024 to US$75million as can be seen in the following chart.
This is the first award of a long-term tender for PSVs in Indonesia in several years and confirms our positive outlook that the growth cycle is firmly in place. As long term contracts are awarded on a tender basis, the Company’s contracts on hand cannot be expected to follow a smooth gradient.
Subsequent Events
In July, the Company entered into a 50:50 joint venture to own and operate an accommodation work barge(AWB) with 300 passenger capacity with a third party, PT Rajawali Perak Mulia, a company with years of experience in this segment. The vessel is currently operating in Thailand and augments the Company’s service offering in the offshore space.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com .
For further information, please contact: Ms. Pek Swan Layanto, CFA Investor Relations PT Wintermar Offshore Marine Tbk Tel (62-21) 530 5201 Ext 401 Email: investor_relations@wintermar.com
JAKARTA, June 21, 2024 – (ACN Newswire) – PT Wintermar Offshore Marine Tbk (WINS:JK) has invested US$13.9 million out of total planned capex of US$35 million for 2024, anticipating higher demand for OSVs driven by increased offshore investments and tight supply.
During the Virtual Public Expose on 21 June 2024, PT Wintermar Offshore Marine Tbk (Wintermar) updated on strategic plans to expand its fleet to capitalize on the anticipated growth in the oil and gas industry. The Company anticipates higher charter rates to come as investment into offshore deepwater oil and gas (O&G) fields and recent O&G discoveries have propelled demand for offshore supply vessels (OSV) while supply remains constrained.
By the end of May 2024, Wintermar’s fleet comprised 42 vessels, with a focus on the high value segment to drive future profitability. Wintermar has placed orders for two Heavy Load Barges (HLB), which are expected to be delivered by year end, and one Accommodation Work Barge (AWB) to its fleet. This was funded by internal cash flow and the sale of two low-yielding vessels, including one Anchor Handling Tug (AHT) and one Fast Utility Vessel (FUV). In April, one older Platform Supply Vessel (PSV) was sold at favorable valuation. Two PSVs are currently undergoing reactivation and are expected to commence operations by the end of the second half of 2024.
Fleet utilization in the 5-month period till end May 2024 was 68%, similar to the utilization rate in 2023. This reflects the current early stage of the oil and gas investment cycle with shorter term contracts associated with exploration activities. However, the average charter rates for the same 5-month period rose 23.1% for high-tier vessels and 14.5% for mid-tier vessels compared to the average for the full year 2023. The Company expects further increases in charter rates and utilization in the second half of 2024.
Finance Director Janto Lili reported that the Company’s Gross Profit for the 1Q2024 reached US$5.0 million, reflecting a significant improvement compared to 1Q2023 of US$3.0 million. This increase was driven by additional higher-value vessels starting operations and higher charter rates, leading to margin expansion. The gross profit margin increased to 27.1% in the first quarter of 2024, compared to 20.7% for the full year 2023. Wintermar’s low net gearing of below 1% positions the Company well to fund growth initiatives and capitalize on market opportunities. The strong financial performance is expected to continue, supported by the anticipated increase in charter rates and fleet utilization in 2H2024.
Managing Director Sugiman Layanto expressed confidence in the coming years, in anticipation of continued strong demand for offshore support vessels driven by rising investments in deepwater oil and gas projects. This is in line with the Company’s strategy in recent years to focus the fleet on higher-value vessels including dynamic positioning vessels. This positive outlook comes at a time when the supply for OSVs remains tight due to the industry’s downturn over the past years, which bodes well for sustained higher charter rates.
For the future, Wintermar will continue to focus on the selective acquisition of higher-value vessels to improve overall fleet profitability. The Company is actively seeking fleet expansion opportunities and is developing in house digital applications to enhance operational capacity through technology. Wintermar’s strategy includes targeting high-tier and specialized vessels to meet the increasing demand from deepwater and ultra-deepwater projects. Additionally, the Company aims to strengthen its presence in international markets to capitalize on higher charter rates and expanding opportunities.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com .
For further information, please contact: Ms. Pek Swan Layanto, CFA Investor Relations PT Wintermar Offshore Marine Tbk Tel (62-21) 530 5201 Ext 401 Email: investor_relations@wintermar.com
Group’s Healthy Cash Flow is Well-Positioned to Undertake Internal Funding for Future Projects
PROPEL GLOBAL BERHAD (Propel Global or the Group), a provider of oil and gas (O&G) services, today announced its financial results for the third quarter of fiscal year 2024 (Q3 FY2024). The Group recorded an impressive revenue of RM65.8 million, marking a significant increase of 166.1% from RM24.7 million in the corresponding quarter of the previous year (Q3 FY2023).
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global
The Group reported a loss before tax (“LBT”) of RM2.1 million for Q3 FY2024 compared to a profit before tax (“PBT”) of RM0.9 million in Q3 FY2023. This decline is primarily attributed to higher corporate administrative expenses such as professional charges and staff costs. The expenses in Q3 FY2024 included the charge for the share-based payment/share grant, and the incentive bonus payment. These expenses are essential for retaining and investing in human capital as the Group is mostly service-driven, hence, people are the key assets.
In the O&G segment, revenue reached RM30.1 million and PBT stood at RM3.3 million, reflecting an increase from RM12.1 million and RM2.7 million respectively in Q3 FY2023. This growth is driven by ongoing projects such as the Engineering, Procurement, Construction & Commissioning (“EPCC”) projects and the Marine Heating Ventilation and Air-conditioning (“HVAC”) projects.
The Technical Services segment also reported strong performance with revenue of RM33.5 million and PBT of RM0.6 million in Q3 FY2024, compared to RM12.6 million and RM1.1 million respectively in Q3 FY2023. The increase in revenue is mainly contributed by a construction project of an electronics factory in Chuping, Perlis, although the profit margin from existing projects was lower than the short-term projects in the previous year.
The newly introduced Information and Communications Technology (“ICT”) segment contributed RM2.2 million in revenue and RM0.8 million in PBT, showcasing the Group’s strategic diversification and adaptability.
Additionally, Propel Global maintained a healthy cash position with cash and cash equivalents at the end of the period at RM20.3 million for the nine months ended 31 March 2024, well positioning the Group to undertake internal funding for future projects.
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global commented, “Our Q3 FY2024 results reflect our commitment to strategic growth and adaptability in a dynamic market environment. The significant increase in revenue and our healthy cash flow position demonstrate our ability to capitalise on new opportunities and execute our projects effectively. As a new management team, we are focused on leveraging our strengths and pursuing sustainable growth initiatives to enhance value for our stakeholders.”
She added, “A healthy cash position ensures that we can meet our financial obligations on a timely basis, seize opportunities, and invest in people and technologies. With our healthy cash flow, we are capable of continuing to drive further growth for Propel Global.”
Moving forward, Propel Global will focus on completing existing projects while consistently bidding for new ones to drive sustained growth. The new management team is committed to strategic realignment and operational efficiency, setting a clear distinction from previous management approaches.
PT Pertamina International Shipping (PIS) is solidifying its position as a top-tier player in ASEAN LPG transport by acquiring two additional Very Large Gas Carriers (VLGCs), named VLGC Pertamina Gas Caspia and VLGC Pertamina Gas Dahlia.
These new vessels are specifically optimized for transporting vital commodities like liquefied petroleum gas (LPG), as well as other petrochemicals such as propylene and ammonia, intended for international trade routes.
Each of the new tankers measures an impressive 300 meters in length or equivalent to two football fields, with a capacity of 91,000m3. They were constructed at Hanwha Ocean, a globally renowned shipyard located in South Korea.
The two giant tankers were officially launched on May 9, 2024 at Hanwha-Okpo Shipyard in Geoje City, South Korea, a shipping hub located over 300 kilometers away from the capital Seoul. Stakeholders witnessing this important launch included Secretary of the Indonesian Ministry of State-Owned Enterprises (SOEs), Rabin Indrajad Hattari; Chargé d’Affaires Ad Interim of the Indonesian Embassy in Seoul, Zelda Wulan Kartika. Representing PIS at the event were Director of Business Planning Eka Suhendra and Director of Fleet Muhammad Irfan Zainul Fikri.
Secretary of the Indonesian Ministry of SOEs, Rabin Indrajad Hattari, extended a warm welcome to the arrival of PIS’s two latest VLGCs, reinforcing its pivotal role in Indonesia’s energy distribution landscape and amplifying Indonesia’s maritime prowess on the global stage.
“These VLGCs signify more than mere vessels; but a testament to international collaboration, technological advancement, and an unwavering commitment to bolstering Indonesia’s energy security. We believe this international collaboration can enhance the capabilities of PIS, as part of Pertamina, in strengthening energy infrastructure,” Hattari emphasized on Thursday (09/05).
He stressed these vessels’ timely arrival and pivotal role in LPG distribution, championing a more eco-friendly energy solution for both industries and households.
“The arrival of these VLGCs signals our unwavering dedication to strengthening Indonesia’s maritime industry. As we expand our fleet with advanced, modern vessels, we create opportunities for our skilled workforce, boost our maritime capabilities, and elevate Indonesia’s standing as a leading regional force in the shipping sector,” added Hattari.
CEO of Pertamina International Shipping (PIS), Yoki Firnandi, stated that the addition of these vessels positions PIS as the foremost VLGC fleet owner in Southeast Asia, bolstering the fleet to a total of seven vessels. “As we continue to grow our environmentally-friendly VLGC fleet, we affirm our commitment to supporting the energy transition and fostering sustainable business development.”
These vessels are currently the world’s largest environmentally-friendly giant gas tankers equipped with the latest technology. The vessels were named after flowers: Caspia symbolizes success and memories, while Dahlia represents happiness and respect.
The new tankers are prioritized for international routes and scheduled to embark on their inaugural voyage from Houston, Texas in the US in early May 2024. Currently, there are 419 VLGC tankers sailing around the world, with an average ship age of 10.08 years. With the addition of two new fleets, PIS now has seven VLGC tankers with an average age of 3.42 years.
“The PIS VLGC vessels’ relatively young average age is advantageous, ensuring operational quality, compliance with regulations, utilization of new technology to reduce emissions, and competitiveness,” stated Yoki.
Previously, PIS also had several new environmentally-friendly dual-fuel LPG tankers in Indonesia, including Pertamina Gas 1, Pertamina Gas 2, Pertamina Gas Amaryllis, Pertamina Gas Tulip, and Pertamina Gas Bergenia.
Furthermore, VLGC Pertamina Gas Caspia and VLGC Pertamina Gas Dahlia also have several superior features, such as the highest load flexibility in their class, up to 39 cargo combinations, and full accommodation anti-piracy measures for crew safety and comfort.
In fact, the VLGC Pertamina Gas Dahlia is directly managed by PIS and operated by a fully Indonesian crew.
As part of Pertamina’s sustainability commitments, the vessels are equipped with energy-saving devices and shaft generators that increase fuel efficiency and reduce carbon emissions, and they use environmentally-friendly dual-fuel and selective catalytic reduction (SCR) technology to reduce acid rain (NOx) pollution.
With the addition of these vessels, PIS’s fleet now totals 102 units, comprising Very Large Crude Carriers (VLCCs), Very Large Gas Carriers (VLGCs), Suezmax vessels, and other fleets of various sizes, with 60 of them serving international routes.
About Pertamina International Shipping (PIS): Pertamina International Shipping (PIS), a subsidiary of Pertamina, was established in 2016. In 2021, PIS assumed the role of parent subholding of Integrated Marine Logistics (SH IML), consolidating all shipping, marine services, and logistics businesses under its umbrella. See https://pertamina-pis.com/.
PT Wintermar Offshore Marine Tbk (WINS:JK) reported US$5 million Gross Profit and US$2.2million Net Attributable Profit for 1Q2024, driven by Owned Vessels gross margin expansion.
Total Gross Profit increased 66.8%YOY to US$5.0 million for 1Q2024 as compared to US$3 million in 1Q2023, while total revenues were 16.3% YOY higher at US$18.4 million compared to 1Q2023. Higher charter rates resulted in a widening of gross margins from the Owned Vessel Division.
Owned Vessel Division
In 1Q2024, Owned Vessel gross profit experienced an increase to US$3.9 million (+129.4% YOY) as compared to 1Q2023, generated from revenues of US$14 million (+44.6% YOY). This was achieved despite only a modest rise in fleet utilization from 67% in 1Q2023 to 69% in 1Q2024, because of rising charter rates and additional revenue from vessels acquired in 2022 and 2023 coming onstream.
If compared to the previous quarter, revenue from Owned vessels fell by 8% for 1Q2024 compared to 4Q2023, as some vessels came off spot contracts, reflecting the short term nature of the projects in operation at the present moment. However, gross profit was maintained at US$3.9million (-1%QOQ) compared to US$4million in 4Q2023, as the effect of wider margins arising from better charter rates for Spot contracts offset the lower utilization.
Owned Vessel Direct expenses increased by 26.4% YOY to US$10.1 million for 1Q2024, primarily driven by a higher number of operational vessels as compared to 1Q2023. The biggest increases were in maintenance expenses which rose +104.2% YOY to US$2.4 million, and crewing expenses of US$2.5 million (+17.9% YOY). Apart from a higher number of vessels, maintenance costs were higher due to the preparation of several vessels for overseas operations. Crewing costs have risen in line with the increased number crew and vessels operating internationally, necessitating a higher crew cost to meet charter requirements. Additionally, depreciation expenses climbed to US$3.5 million, up 17.2% YOY, reflecting the growth in fleet size.
Chartering Division and Other Services
Chartering Division saw a 25.3% YOY decline in revenue to US$ 3.0 million for 1Q2024 compared to 1Q2023, as two vessels which were previously chartered were purchased last year and are now reflected in Owned Vessel Division. Gross profits in the Chartering Division also decreased by 49.4%YOY to US$ 0.2 million. Revenue from Other Services decreased by 33.0% YTD, while gross profits in this division remained relatively stable, showing a slight increase of 1.2% YTD to US$ 0.9 million.
Indirect Expenses and Operating Profit
Indirect Expenses increased by 61.4% YOY to US$ 2.3 million. A significant factor was the one-time reversal in employee benefit expenses in 2023 due to the Company’s adoption of the changes in the Omnibus Law, which did not recur in 1Q2024. Salary expenses also rose to US$ 1.7 million, up 41.4%YOY from 1Q2023, primarily due to increase in permanent employees following business expansion.
Operating Profit for 1Q2024 was US$2.7 million, which increased 71.7% YOY.
Other Income, Expenses and Net Attributable Profit
Interest expenses decreased by 5.9% YOY to US$0.2 million for 1Q2024 with ongoing reduction in debt as the Company’s net gearing ratio has now fallen to only 0.9% as of 31 March 2024.
Income from equity in associates turned positive, reaching US$0.2 million in 1Q2024 compared to a loss of US$0.4 million in 1Q2023. This improvement reflects higher utilization and better profits from an associate’s recovering business.
The net profit attributable to shareholders for 1Q2024 amounted to US$2.2 million, marking a significant increase compared to US$0.18million in 1Q2023.
Industry Outlook
The rise in global energy consumption demand is leading to investments in oil and gas exploration and production, emphasizing the industry’s resilience and adaptability amid geopolitical tensions and a shifting energy landscape. In 2024, the global oil market remains robust, with IEA projecting demand growth of 1.2 million barrels per day.
Indonesia’s oil and gas sector aligns with this trajectory, showing signs of renewed activity and expansion. Recent discoveries and the final approval of the Masela Field plan of development will likely drive increased deepwater exploration and development work, which will create increased demand for higher value OSVs. Progress in bringing offshore gas discoveries like the Mako field into production, along with the drilling of a significant ultra-deepwater gas prospect in the Andaman Sea, further highlight the potential growth for OSV services in the region.
OSV demand has strengthened further, driven by a continuation of increased offshore activities, including drilling and maintenance. The market is seeing tightening conditions due to rising requirements for OSVs arising from an increase in active rigs while OSV supply remains limited. These conditions have pushed up utilization of OSVs globally, and are likely to persist due to current limited orderbooks for newbuilds, which will support even higher charter rates.
Business Prospects
In 1Q2024, the Company further expanded operations beyond Indonesia, securing contracts in Brunei and Thailand, and commencing a long-term contract in India. These contracts offer improved charter rates and diversify service offerings, including specialized support for subsea and geo inspection tasks.
Subsequent Events
In line with plans to rejuvenate our fleet composition, the management took advantage of an attractive bid and sold one of our earliest purchased PSVs at a very favorable price in April 2024. The proceeds of this sale will enable the Company to reinvest in more attractive yielding assets in the market at present.
The Company had been locked into 2 long-term contracts since 2019 at charter rates much lower than the current market level. These contracts were not extended and have concluded by late April, thus freeing up the vessels to benefit from higher market rates.
Contracts on hand as at end March 2024 amounted to US$71.6 million.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact: Ms. Pek Swan Layanto, CFA Investor Relations PT Wintermar Offshore Marine Tbk Tel (62-21) 530 5201 Ext 401 Email: investor_relations@wintermar.com
Wintermar Offshore Marine (WINS:JK) has announced results for FY2023. Wintermar’s net attributable profit jumped by 501.1%YOY to US$ 6.7 million for FY2023 backed by higher charter rates.
Higher utilization and rising charter rates towards the 4th quarter lifted gross margins and led to a strong operational performance in FY2023 with EBITDA up 24.4% to US$21.8million on total revenue of US$72.6 million (+19.0%YOY).
Owned Vessel Division
The Owned Vessel Division’s revenue saw a 33.3% YOY increase to US$ 48.2 million, outpacing the owned vessel direct cost growth of 22.4%. Maintenance costs increased by 70.9% in 2023, with 3 additional mid tier vessels starting operations in 2023 and the full year effect of 1 additional high tier vessel which commenced work in late 2022. These costs will stay high in line with our growing fleet of high tier vessels. Operations costs rose by 64.4%, as result of increased operational cost due to a larger number of vessels working outside Indonesia where agency and other costs are higher. Additionally, fuel costs were up by 30.5%, as result of mobilization and demobilization costs of vessels working outside Indonesia. Owned Vessel gross margins increased to 22.6%, up from 15.7% in FY2022, primarily due to increased charter rates. These improvements more than compensated for the higher direct expenses.
Full year utilization rate stood at 68% compared to 73% in 2022, impacted by low utilization in 2Q2023. This was due to a number of our high-tier vessels needing maintenance following the conclusion of long-term contracts.
Utilization was stronger towards the second half of FY2023, with 2H2023 utilization at 73% compared to 62% at 1H2023. The growth in Owned Vessel revenue was weighted towards the 2nd half as utilization and charter rates started to improve in the latter part of the year. Revenue from Owned Vessels grew 51.3% in 2H2024 compared to 1H2024. Gross profit from this division jumped by 91.8% YOY to US$10.9 million.
Throughout 2023, the Company broadened its operational capacity by acquiring two mid-tier vessels and bringing one lower-tier vessel back into service. Two more high tier vessels are now estimated to start operations only in 2H2024. By the end of the year, the Company’s total fleet size reached 44 vessels.
Chartering Division and Other Services
Chartering Division experienced a slight revenue drop of -4.4%, with Gross Profit from Chartering also decreasing by -54.9%YOY to US$1.1million from US$2.4million in 2022. Revenue from Other Services saw a increase of 4.5%. However, the gross profit for this division slightly declined, to US$3.1 million in FY2023, a 3.1% decrease from the previous year’s US$3.2 million.
Total Gross Profit for FY2023 stood at US$15.1million, a substantial 33.7% increase from the previous year.
Indirect Expenses and Operating Profit
Indirect expenses, rose by only 4.3%YOY at US$ 6.2 million. The largest cost was higher salary expenses of US$4.8 million (+15.8%YOY) due to increased hiring in line with business recovery. Professional fees rose by 30.7% to US$0.3 million from US$0.2 million in 2022 due to implementation of a new internal communication and workflow management system. The rise in other indirect expenses was offset by a large non recurring reduction of US$0.7million in employee pension liabilities as a result of the Company’s adoption of the Omnibus Law and adjustment of US$0.2 million over accrual in 2022, which led to an income of US$0.26million instead of expense under employee benefit.
Operating Profit for FY2023 was US$8.8 million, which increased 66.5% compared to the previous year.
Other Income, Expenses and Net Attributable Profit
Interest expenses decreased by 12.9% YOY to US$1.2 million as the Company cut its debt by US$5.9 million throughout the year, reducing its net gearing to only 3.0% as of 31 December 2023.
Income from equity in associates increased to US$0.5 million in FY2023 from US$0.4 million the prior year, reflecting our share of the profits from an associate’s successful sale of a vessel.
The net profit attributable to shareholders for FY2022 amounted to US$ 6.7 million, a jump of 501.1 %YOY.
EBITDA for FY2023 increased by +24.4%YOY to US$21.8million.
Outlook for Oil and Gas Exploration
In 2023, the oil and gas industry saw a steady upturn, with global oil demand surpassing 100 million barrels per day for the first time. This demand upswing led to increased investment in upstream activities reaching the highest levels since 2015. Particularly in the Middle East, as well as in other regions worldwide, national oil companies escalated their spending to fortify national energy security by securing sufficient reserves of future supply to meet energy demand.
The following charts illustrate the rising upstream oil and gas capital expenditure. Most of the new investments are offshore, with deepwater growing much faster than shelf.
Business Outlook
In line with the data showing a concentration in offshore deepwater investments, there has been over the past year more aggressive charter rate hikes in particular for High Tier vessels that cater to deeper offshore waters. Until now, Indonesian charter rates have lagged behind the global market in adjusting to higher demand. However, with recent discoveries in Indonesia and the approval of the Masela Field plan of development late last year, there will be increasing deepwater exploration and development work in Indonesia in the coming years which will underpin demand for high tier vessels.
The supply for Offshore Support Vessels remains constrained, partly due to the industry’s anticipation and uncertainty over the renewable fuel of choice for next-generation propulsion technologies. These tight conditions are expected to persist, which should in turn gradually push rates higher in the coming years.
We have successfully secured contracts outside Indonesia in regions like India, Brunei, and Thailand, where we benefit from more favourable charter rates. Additionally, we are actively preparing two PSVs for operations that are anticipated to come online in the 2H2024, providing further growth opportunities for the coming year.
There are challenges in operating an older fleet with higher maintenance costs and unavailability of spare parts. We therefore expect higher annual maintenance and operational costs in line with our fleet age profile. The nature of our contract tenures still being very much dominated by spot contracts, particularly in the High Tier segment, will add volatility to our quarterly revenue, on top of seasonality factors which usually contribute to a weaker first half.
Now that the Company has a much stronger balance sheet and low net gearing, management will be seeking opportunities for fleet rejuvenation to improve the fleet yield and diversify revenue sources through managing our fleet composition with investments in the current year.
Contracts on hand as at end February 2024 amounted to US$75 million.
For further information, please contact: Ms. Pek Swan Layanto, CFA Investor Relations PT Wintermar Offshore Marine Tbk Tel: (62-21) 530 5201 Ext 401 Email: investor_relations@wintermar.com
Scheduled for 15-17 May 2024 in Bangkok, Thailand, Future Energy Asia will address the urgent need to drive investments and collaborations for tripling renewable energy capacity, accelerating low-emission technologies, and doubling the rate of energy efficiency.
Hihglights:
– Co-hosted by EGAT and PTT, Future Energy Asia Exhibition & Summit taking place from 15-17 May 2024 in Bangkok, aims to lead the sustainable energy transformation in Asia amidst rapid industrialisation and urbanisation – The conference is planned to address themes impacting the future of Asia’s energy landscape, including transitioning Asia towards carbon neutrality, utilising gas as a transition fuel, harnessing hydrogen, ammonia and alternative fuels, and financing renewable energy development – Thai government entities and global associations to engage in critical dialogue impacting regional energy policy – Ministry of Energy, Ministry of Digital Economy and Society, National Energy Technology Center (ENTEC), Energy Regulatory Commission of Thailand, Ministry of Natural Resources and Environment (MNRE), Thailand Convention and Exhibition Bureau and the Energy Regulators Regional Association (ERRA) – The exhibition acts as a hub for renewable energy innovation and investment, with support from energy majors – PTT, ABB, Bapco Energies, Black & Veatch, Cheniere, Emerson, Schneider and more
Endorsement from Thailand’s key governmental bodies, including the Ministry of Energy, Ministry of Digital Economy and Society, National Energy Technology Center (ENTEC), Ministry of Natural Resources and Environment (MNRE), Energy Regulatory Commission of Thailand, and the Thailand Convention and Exhibition Bureau, underscores the event’s critical role in aligning industry advancements with sustainable energy policies.
With its extensive content program featuring over 300 sessions and 2,500 conference delegates, Future Energy Asia will be the breeding ground for the strategies and solutions needed to navigate the energy transition in Asia.
The conference programme will focus on key themes including the strategic role of natural gas and LNG as transition fuels, supported by carbon capture and methane reduction efforts; the push towards alternative fuels like hydrogen, demanding significant government and industry investment; the surge in renewable energy development, requiring innovative solutions for integration and regulatory challenges; the importance of enhancing ASEAN’s power grid for improved sustainability and connectivity; and the pivotal role of digitalisation in managing complex energy systems.
More than 600 policy makers, industry leaders and academia will speak at the event to share insights across multiple stages, including notable figures like Somruedee Chaimongkol (CEO of Banpu), Dr Harald Link (Chairman, B. Grimm), Darmawan Prasodjo (President Director, PT PLN), and Dato’ Ir. Ts. Abdul Razib bin Dawood (CEO, Energy Commission, Malaysia).
“Events like Future Energy Asia are critical for sharing knowledge, strategies, and innovations that will drive our region’s energy transition,” stated Somruedee Chaimongkol, CEO of Banpu. “It’s an opportunity to redefine how we think about and use energy. It’s about building a collective future that prioritises innovation, resilience, and sustainability.”
Attended by over 22,000 professionals and featuring more than 350 exhibiting companies, Future Energy Asia Exhibition along with co-located events will act as a catalyst for innovation and investment in renewable energy and efficient systems. The showcase will present latest products, solutions and innovations driving forward Asia’s energy transition, from industry leaders such as PTT, ABB, Bapco Energies, Black & Veatch, Cheniere, Emerson and Schneider.
“By supporting Future Energy Asia, we’re investing in a future where energy is not only accessible but also efficient and sustainable for all,” shared by Mr. Auttapol Rerkpiboon, President and CEO, PTT. “It’s about building a collective future that prioritises innovation, resilience, and sustainability.”
“The collaboration and dialogue facilitated by Future Energy Asia are indispensable for bringing the industry together in tackling it’s decarbonisation goals,” said Narsingh Chaudhary, President, Asia Pacific & India, from Black & Veatch. “It’s truly a great venue to have deep discussions on industry challenges and share innovative global solutions that we bring to the region.”
Christopher Hudson, President, dmg events, said: “It is critical that we urgently address the increasing energy demand by growing economies in Asia while aligning with climate objectives. A synergistic approach between the government and the private sector is essential for propelling Thailand and the wider region towards a sustainable energy future. Events such as Future Energy Asia offer a platform to forge transformative collaborations and develop groundbreaking solutions to shape the future of the industry.”
Taking place alongside the event, and in strategic partnership with Future Energy Asia, the world’s leading energy authorities will gather at the Energy Regulators Forum (ERF) to discuss the complexities of the trilemma of security, affordability, and sustainability in the energy sector, and the urgent need for effective and adaptable regulatory policies.
Held annually by the Energy Regulators Regional Association (ERRA), the 21st edition of ERF will take place for the first time in Asia, uniting global regulators, visionary investors, system operators, top-tier consultants, and academics in high-level dialogue that will significantly impact the future of the energy market.
Also co-located with Future Energy Asia, Future Mobility Asia Exhibition and Summit is uniquely positioned to act as a bridge between innovators in the mobility sector and representatives from across the global energy value chain. Future Mobility Asia creates an inclusive environment that seeks to drive cross-sector collaboration, sparking the innovation needed to accelerate Asia’s mobility transition.
On January 30, 2024, PT Wintermar Offshore Marine Tbk(WINS:JK) entered a strategic venture through a 49% stake in SAVWIN Sdn Bhd with a Brunei-based partner.
Through this partnership, Wintermar will have an advantage in tendering for longer term contracts in Brunei which favour local content. Savwin Sdn Bhd will initially operate a Fast Multi-Purpose Supply Vessel which is currently on a long term contract in Brunei until 2027. This initiative signifies our strategic expansion to enhancing our maritime service offerings and strengthening our local presence in Brunei’s maritime sector, where Wintermar has been operating since 2014.
Wintermar group’s 4Q2023 fleet utilization reached 74%, which was better than 70% recorded in 3Q2023. Total contracts on hand as at 31 December 2023 amounted to US$ 82 million.
About Wintermar Offshore Marine GroupWintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact:Ms. Pek Swan Layanto, CFAInvestor RelationsPT Wintermar Offshore Marine TbkTel: (62-21) 530 5201 Ext 401Email: investor_relations@wintermar.com
