PT Wintermar Offshore Marine Tbk Archives

Wintermar Offshore (WINS:JK) Reports 9M2025 Results

Wintermar booked a 25.1%YOY rise in 9M2025 Operating Profit to US$14.7million, supported by an 11.6% increase in Owned Vessel Revenue and rising Gross Margins.

Owned Vessel Division

Owned Vessel Revenue rose by 11.6%YOY to US$50.3million for 9M2025, driven by a significant increase in High Tier vessel utilization to 76% for 9M2025 compared to 59% in 9M2024.

Average charter rates for our fleet have risen around 5% since end 2024 whereas average utilization for 9M2025 was 60.4%, lower than utilization rates of 67% achieved in 9M2024. The lower utilization stemmed from the large number of spot contracts for our mid-tier fleet in 2025, which is characteristic of this early phase of the oil and gas investment cycle where most of the OSV demand is for seismic/survey or the exploration and construction, where projects tend to be completed in several weeks. In the mid-tier segment, the utilization of HLB was lower in 3Q2025 compared to 2Q2025 due to completion of spot contracts.

Overall, the higher charter rates for the fleet compensated for lower overall fleet utilization this year, leading to a rise in gross margins for the Owned Vessel Division to 38% from 30% in 9M2024. Total Gross Profit for the Owned Vessel Division amounted to US$20.1million (+29.6%YOY) for 9M2025. Although the fleet is still impacted by fluctuations in quarter-to-quarter utilization as the majority of vessels are still on spot contracts, we are confident that there will be longer term contracts coming up in 2026-2027 as more projects head into the development and production phase of the oil and gas investment cycle.

Chartering Division and Other Services

Contribution from the Chartering Division has declined, with gross profit of US$0.35million for 9M2025 compared to US$1.2million in 9M2024. This was because a few chartered vessels completed a project which will not be resuming this year. This reduction has been offset by higher Gross Profit from Other Services, which rose 8.1%YOY to US$1.8million from an increase in commissions, fees and other service income.

Direct Expenses and Gross Profit

Total Owned Vessel Direct Costs rose by 2.2%YOY to US$30.2million for 9M2025, due to higher depreciation and crewing costs. Depreciation rose to US$10.5million (+3.6%YOY) with the operation of 3 additional HLB vessels and 1 PSV compared to 9M2024. Crewing costs roseto US$8.1million (+7.6%YOY) as a result of a higher number of Dynamic Positioning (DP) vessels in the fleet and higher salaries for crew on international contracts. Fuel costs are borne by charterers while a vessel is on contract, and with more high tier vessels chartered out compared to the previous year, the overall fuel expenses fell by 19.1% YOY to US$1.76million in 9M2025.

Indirect Expenses and Operating Profit

Total Indirect Expenses rose by 14%YOY or US$0.9million to US$7.5million for 9M2025, with salary costs, employee benefits and staff training accounting for US$0.6million of this increase. As our business has expanded internationally, we have invested more heavily into human resources, particularly in the technical and technology divisions, and expanded our crew training and development programs to invest in developing young marine graduates and electrical engineers to have practical experience on board our fleet to be ready for future international operations.

Operating Profit grew by 25.1% YOY to US$14.7million for 9M2025 compared to US$11.8million in 9M2024.

Other Income, Expenses and Net Attributable Profit

Net interest expenses rose by US$0.4million as higher interest expenses were offset by interest income. Net gearing stands at only 0.6% as at end September 2025.

Equity in Associate Companies fell to US$0.6million in 9M2025, from US$2.1million in 9M2024, due to poorer utilization in 3Q2025 and increased capital costs related to the award of a new long-term contract.

There were no vessel sales in 3Q2025, and only one vessel sold in 2Q2025, realizing a gain of US$1.7million for 9M2025. This represents a sharp decline compared to 2024 which included a large one-off gain booked from vessel sales in 2024 where the Company made US$17.4million from the sale of several vessels including a significant gain from the sale of a PSV.

Total Other Income for 9M2025 stood at US$1.3million which resulted in a net income before tax of US$16.1million for the nine months period year to date.

Net profit attributable to shareholders for 9M2025 amounted to US$9.2million compared to US$19.7million in 9M2024. Net income before Non-Controlling Interest in 9M2025 fell to US$14.4million compared to US$27.2million in 9M2024 which included the impact of the PSV sale.

EBITDA for 9M2025 rose by 15%YOY to US$25.5million, compared to US$22.1million in 9M2024. This reflects the strong cash flow enjoyed by the Company as most of the past vessel loans have been repaid.

Industry Outlook

The OSV industry was not spared from the global uncertainty in investor sentiment this year. Concerns over US tariffs and a potential global economic slowdown caused oil prices to trend lower, which led to a more cautious environment and delays in contract awards. Charter rates for OSVs which had risen sharply from 2021 to 2024 also saw a correction this year.

The Oil and Gas investment cycle is a long-term cycle over several years from award of concessions to production. Due to the lack of investment in new reserves over a 8-year period until 2021, we are firmly optimistic that the longer-term fundamentals indicate continued investment in oil and gas exploration.

In the Offshore Supply Vessel (OSV) industry, there has been nearly no newbuilding of high tier Dynamic Positioning (DP) equipped vessels from 2015 to 2022. The softening in OSV charter rates this year is expected to be short term in nature as the limited supply of operationally ready OSVs points to a sustained shortage of OSV supply in the coming years. This is illustrated in the chart below, which shows the active fleet compared with the small number of idle PSVs and charter rates for the period 2023-2025. From the data, demand continues to be high with overall global fleet utilization close to 90%.

Business Prospects

The short-term weakness in oil prices over the past quarter reflects the volatile geopolitical sentiment which has been driven by changing news flows more than industry fundamentals. The structural outlook for oil and gas supply support stable oil prices, resulting from years of underinvestment in new reserves. In 2025, there have been several projects in Indonesia which are still at the early stage of the investment cycle, where seismic and exploration work only necessitates spot contracts. This has caused volatility in our fleet utilization. However, the long investment cycle from exploration to production indicates that there will be more demand in the coming years as these projects will continue towards production targets in 2027. This will underpin OSV demand in the coming years. Taking into consideration the limited orderbooks for new OSVs to be delivered in the coming years, we remain very optimistic that charter rates and utilization will improve in the coming years, as we continue to add high value vessels.

Award of long-term contract in Brunei

Our associate company, Fast Offshore Supply Pte Ltd (FOS), based in Singapore, has been awarded a tender to supply 5 newbuild 55-metre Crew Transfer Vessels (CTVs) under a five-year charter contract in Brunei for delivery in 2027. Construction of the vessels has commenced, and WINS has participated in a rights issue to support this project. The vessels are being constructed by FOS in Singapore and Batam. This new long-term contract provides secure future earnings and fleet renewal for FOS, thereby improving the financial & revenue contribution to the Company.

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 (WINS:JK) Reports 1H2025 Results

Wintermar’s Operating Profit jumped 55.8%YOY to US$8.9million for 1H2025, derived from 17% growth in Owned Vessel Revenue in 1H2025 and higher gross margins from better fleet mix and higher charter rates.

Owned Vessel revenues were higher in 1H2025 compared to 1H2024 despite lower utilization due to better yielding vessels in operation in 1H2025.

Owned Vessel Division

Although the number of vessels has not changed, fleet composition has improved with 2 additional PSVs in operation in 1H2025 as well as 3 newly delivered HLBs which 2 units commenced work in April 2025 and 1 unit in July 2025. With 4 additional units of higher yielding vessels in operation compared to last year, gross margins from the Owned Vessels Division expanded from 29.6% in 1H2024 to 39.1% in 1H2025. This resulted in a 54.4%YOY jump in Gross Profit growth for the Owned Vessel Division to US$12.4million, despite a fall in utilization from 63.7% in FY2024 to 57.9% in 1H2025.

Despite a slower first half of the year which caused a dip in utilization, the Company reaped the benefit of improving average charter rates from a higher number of operational vessels at the higher value segment of the fleet. Owned Vessel Expenses increased by 22%QOQ from 1Q2025 to 2Q2025 due to an increase of fleet as well as Operational costs.

Chartering Division and Other Services

Chartering revenues experienced a sharp decline, as several vessels ended a contract which has not been renewed. Gross Profit from Chartering fell from US$0.7million in 1H2024 to US$0.2million in 1H2025.

Gross Profit from Other Services fell to US$1.4million (-11.5%YOY) in1H2025 in line with the lower vessel utilization for the period compared to last year.

Direct Expenses and Gross Profit

Total Owned Vessel Direct Expenses rose only slightly by 1.3%YOY to US$19.4million for 1H2025. The largest increase came from Fuel Bunker costs which rose to US$1.4million (+46.1%YOY) due to the mobilization of vessels to overseas contracts. All other costs were lower except for Fleet Maintenance which rose 2.2%YOY to US$4.1million in 1H2025.

On a quarterly basis, there were higher operational and maintenance costs in 2Q2025 compared to 1Q2025 due to the preparation and mobilization of a mid-tier vessel for a long-term contract in the Middle East.

Indirect Expenses and Operating Profit

Total Indirect Expense rose by 11.0%YOY to US$5.1million in 1H2025. The largest increase came from salary and employee benefits which rose by 10.0%YOY and 16.9%YOY to US$3.8million and US$0.2million respectively. With the improvement in business conditions and a wider geographic spread of operations, there was an increase in the number of employees in 2025 compared to last year. Telecommunications and marketing costs also rose with more international projects and higher costs of bid bond fees in the tender process.

Due to good cost control, Operating Profit for 1H2025 jumped by 55.8% to US$8.9million from US$5.7million in the previous year.

Other Income, Expenses and Net Attributable Profit

As the Company refinanced the newly acquired vessels from the past year, interest expenses rose to US$1million for 1H2025, while interest income also doubled to US$0.3million due to strong operational cash flow.

There was a turnaround in Equity in net earnings of Associates from a loss of US$0.4million in 1Q2025 to a profit of US$0.7million in 2Q2025. This resulted in a gain of US$0.6million from Investment in Associates for 1H2025, slightly lower than US$0.8million in 1H2024.

During 2Q2025, management successfully sold a smaller mid-tier vessel for a profit, resulting in a net gain on sale of fixed asset of US$1.7million. This is in line with the continued fleet renewal program where smaller mid-tier vessels which are lower yielding will continue to be sold off to concentrate the fleet on larger and higher yielding vessels. However, this cannot compare with the significant one-off gain of US$17.4million recorded in 1H2024 primarily from the sale of a platform supply vessel. Therefore, total Other Income was US$1.7million for 1H2025 as compared to US$17.4million in 1H2024 which included the one-off vessel sale.

Net income before tax for 1H2025 totalled US$10.7million, compared to US$23.2million in 1H2024. This 53.8% decline does not reflect the underlying improvement in the core business as 1H2024 profit included the sizable one-off gain from the vessel sale.

Non-Controlling Interest fell from US$6.4 million in 1H2024 which included some profit from the sale of vessel to US$2.7 million in 1H2025. The group’s EBITDA jumped by 25.8%YOY for 1H2025, reaching US$16.0 million compared to US$12.7million in 1H2024.

Stripping out the impact of vessel sales, the underlying profit for 1H2025 was US$ 5.4million compared to US$4.9million in 1H2024 representing a growth of 10.1%YOY.

Industry Outlook

There are growing signs of a pivot from renewable energy back to hydrocarbons as the world faces a growing need for energy while renewable sources of fuel are still insufficient and less economical. The continuing uncertainty in the Middle East and ongoing wars in Ukraine and Gaza have put pressure on governments around the world to seek energy security. In addition, the increasing need for energy for the “Green Transition” and data centres has led to a resurgence of demand for oil and gas. These factors have led to projections for global investment in oil and gas being maintained above US$610 billion in the coming years, with a steadily growing share invested into offshore fields.

In Indonesia, the government has continued to push for self-sufficiency in various sectors, with energy being one of the sectors benefitting from this plan. There are at present four sizeable strategic national projects in Indonesian offshore fields which are currently in the early stage of exploration and where production is expected from 2026-2030. These projects will sustain demand for OSVs in Indonesia in the coming years.

Business Prospects

The Company’s focus on developing a strong presence in the dynamic positioning segment is bringing in benefits of a higher blended fleet charter rate which has led to higher gross margins. The 3 units of newly built HLB which commenced work in April to July 2025 will underpin earnings in 2H2025, and there is a third reactivated PSV expected to be operational at the end of 3Q2025. The investment cycle for oil and gas is still expected to ramp up for the next few years, providing better fleet utilization which will lead to profit upside.

The stronger cash flow arising from a low debt position has enabled the Company to continue investing into higher value vessels while selling lower yielding vessels. The additional vessels coming into operation in 2025 will provide upside for 2026 earnings.

Total contracts on hand as at end June 2025 has risen to US$70.9 million.

About Wintermar Offshore Marine Group

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 (WINS:JK) Reports 1Q2025 Results

Wintermar recorded a 31.4%YOY increase in Gross Profit to US$6.6 million for 1Q2025, with US$4.1 million Operating Profit (+52.5% YOY), driven by Owned Vessels gross margin expansion.

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.

Operating Profit for 1Q2025 was US$4.1 million, which increased 52.5% compared to the same period in the previous year. The operating margin rose to 24.7% in 1Q2025 from 14.7% in 1Q2024.

Other Income, Expenses and Net Attributable Profit

Interest expenses doubled to US$0.5 million in 1Q2025 as the Company obtained new loans to refinance the PSV and HLBs purchased last year. On the other hand, interest income rose by 32.0%YOY to US$0.1 million in 1Q2025, following strong cash flow generation.

Equity in net earnings of associates recorded a loss of US$0.04 in 1Q2025 compared to a gain of US$0.2 million in 1Q2024, reflecting the lower utilization experienced by our associated companies.

The sale of fixed assets contributed a gain of US$0.2 million from the disposal of low tier vessels in 1Q2025, effectively capturing the fleet’s monetary value. The Company recorded a FX loss of US$0.4 million from Rupiah denominated trade receivables, impacted by the strengthening of the USD.

Non-controlling interest was significantly higher at US$1.5 million compared to US$0.4 in 1Q2024, reflecting the share of minority interest in earnings from the PSV business, in which Wintermar holds a 51% stake. Net Attributable Profit for 1Q2025 amounted to US$1.6 million, a decrease by 25.6%YOY from US$2.2 million in 1Q2024.

The group’s EBITDA jumped by 20.2%YOY for 1Q2025, reaching US$7.6 million.

Industry Outlook

The long term outlook for offshore support vessels (OSV) is still positive, albeit in the near term, the industry has not escaped the uncertainty affecting global business sentiment that has emerged from policy fluctuations in the US. As a result of the imposition of tariffs, oil demand growth for 2025 has been revised down while geopolitical risks have risen amidst fears of escalating trade wars.

In 1Q2025, the global caution added to the seasonal slowdown in Asia which resulted in some delays to project commencements. However, planning is underway for several offshore drilling projects which are expected to ramp up towards the end of the year, which provide support for charter rates. The second-hand market has been active with higher prices being offered for used OSVs in operating condition, indicating that there is still strong demand in the coming years.

Business Prospects

The year has started on a slow footing, which has impacted utilization in 1Q2025 as 60% of the fleet is still exposed to short term spot contracts. Gross margins, which have been climbing, will be maintained due to the better fleet mix, as can be seen in the strong growth in gross profit and operating profit. The Company has taken delivery of 2 units of Heavy Load Barges in 1Q2025 which are expected to commence operations in 2Q2025 and secured additional high tier vessel contracts, thus supporting continued profitability in the latter part of the year. Looking ahead to 2026, we are still positive on the demand for DP vessels which will be needed for several new deepwater drilling projects which are in development this year.

Total contracts on hand as at end March 2025 has risen to US$71.9 million.

About Wintermar Offshore Marine Group

For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor RelationsPT Wintermar Offshore Marine Tbk
Tel (62-21) 530 5201 Ext 401
Email: investor_relations@wintermar.com

Wintermar Reports Results For The Full Year Ended 31 December 2024

Wintermar’s Operating Profit jumped by 101.5%YOY to US$17.8 million on the back of a 13.5%YOY increase in Total Revenue to US$82.4million, from higher charter rates and a better fleet mix of DP (Dynamic Positioning) vessels.

Owned Vessel Division

Owned Vessel Revenue rose by 28.9%YOY to US$62.1million for FY2024 from US$48.2million in FY2023. This was driven by a larger number of DP vessels in the fleet which pushed the average charter rates for 2024 up by 26% as compared to the average charter rate in 2023. These factors contributed to a 106.2%YOY jump in Gross Profit from Owned Vessels to US$22.4million for FY2024 with vessel utilization in 2024 at 66%, slightly lower than 68% for 2023.

Owned Vessel gross margin has increased to 36.1% in FY2024 as compared to 22.6% in FY2023, reflecting a strong increase in charter rates as well as a better fleet exposure to the DP segment. Our 5150BHP to 8000BHP AHTS as well as PSVs experienced a higher charter rate boost than the rest of the fleet due to rising demand for deeper water drilling projects, which require DP capability.

Vessel utilization fell in 4Q2024 to 63% compared to 67% in 3Q2024. Some vessels completed spot contracts while the monsoon season in Brunei also impacted utilization. These vessels underwent maintenance and will start operations again in mid 1Q2025. The additional PSV which was delivered in October 2024 did not commence operations until January 2025.

Chartering Division and Other Services

Gross Profit from Chartering rose by 28.7%YOY to US$1.4million, despite slightly lower revenue of US$13.7million, reflecting improved margins. Gross Profit from Other Services recorded a decline of 16.7%YOY to US$2.6million upon the completion of a contract.

Total Revenue for FY2024 rose 13.5% YOY to US$82.4 million with Total Gross Profit of US$26.4 million (+75.5%YOY) for FY2024 as compared to Total Revenue of US$72.6 million and Total Gross Profit of US$15.0 million in FY2023.

Direct Expenses and Gross Profit

Owned Vessel Direct expenses rose by 6.4% YOY to US$39.7million, largely from higher maintenance costs, which rose by US$7.5million (+21.8%YOY), in additional to higher crewing costs of US$10.3million (+10.5%YOY).

The higher maintenance and crewing costs are aligned with operating a fleet of higher value vessels and a larger proportion of operations outside of Indonesia. Depreciation costs rose by 5.4%YOY to US$13.4million as the number of operational vessels increased. Bunker costs rose by 7.2%YOY to US$3.3million due to higher oil prices and a larger number of vessels mobilized in and out of Indonesia.

Indirect Expenses and Operating Profit

Indirect Expenses rose by 38.5%YOY to US$8.6million, with Staff Salary contributing US$1million to the increase, reflecting a focus on strengthening the operations, technical and IT teams to manage a higher value fleet, as well as the payment of employee bonuses in line with the strong operational performance.

As the Company now participates in more international tenders, there has been an increase in marketing expenses by 164.8%YOY to US$0.66million.

Operating margins jumped to 21.6% for FY2024 compared to 12.2% in 2023, as Operating Profit doubled to US$17.8million for FY2024, reflecting the impact of operational gearing on the Company’s profitability as charter rates begin to rise.

Other Income, Expenses and Net Attributable Profit

Interest Expenses and financial charges fell by 4.2%YOY to US$1.2million while interest income rose by 582%YOY to US$0.46million, as the Company continued to accumulate cash flow and pay down debt.

Equity in net earnings of associates jumped to US$2.4million for FY2024 from US$0.55million in FY2023, with strong contribution from associated companies with OSV operations which also benefitted from the strong industry upturn.

The sale of fixed assets contributed a one-off gain of US$16.1million, largely from the sale of an older PSV in the first half of 2024. Due to the strengthening of the A, the Company recorded a FX loss of US$0.47million mainly from Rupiah denominated trade receivables.

Non-controlling interest was significantly higher at US$9.8million compared to a small loss of US$0.04million in FY2023. The largest contributor to this was from the gain on sale of fixed asset as well as the stronger earnings from the PSV business which is 51% controlled by Wintermar.

Net Attributable Profit to shareholders for FY2024 was US$22.5million, a significant jump of 237% compared to US$6.7million in FY2023. Excluding the gain on sale of Vessel, the underlying core profit increased by 126.5%YOY to US$15.1million compared to US$6.6 million in FY2023.

FY2024 EBITDA increased by 44.8% YOY to US$31.5million.

Industry Outlook

The recent months have been characterized by rising global uncertainty arising from dramatic policy changes in the US, the prospect of tariff wars and the fragile ceasefire in Gaza.

These upheavals have not derailed the underlying momentum in the upstream investment cycle, which seems to still be unfolding as major oil companies have started to roll back renewable energy projects in favour of investing in oil and gas. The oil price has corrected from previous highs but is forecasted to stay firm in the next couple of years from OPEC+ intervention.

In Indonesia, the government remains committed to the various major deepwater projects which have received investment approval in the past 12 months. SE Asian charter rates corrected slightly at the end of 2024 after a very sharp spike up in the past 12 months. However, there are several Engineering Procurement (EPCI) projects which require OSV for short-term projects, which accounts for a more volatile utilization of the OSV fleet.

Business Prospects

Despite a slower 4Q2024, we are still optimistic on the outlook for OSVs in Indonesia as there are several approved deepwater drilling projects particularly in the Makassar strait and the Andaman sea which are likely to commence in 2H2025 to 2026. Some EPCI contracts have been awarded and tendering for the marine spread is ongoing for 2H2025 commencement. All this points to continued short term contracts, by virtue of where we are at this early stage of the drilling cycle, and we expect continued volatility in utilization rates while charter rates should remain firm.

Wintermar took delivery of 3 units of newbuilt Heavy Load Barges (HLB) between December 2024 to February 2025. The vessels are in the process of conversion to Indonesian flag and will be ready to work by 2Q2025. In addition, the Company has ordered a newbuilt Platform Supply Vessel for delivery in 2026, which will enhance the DP capability of the fleet and reduce average age of the fleet. These acquisitions have been funded through internal cash flow and will be refinanced upon delivery. In 2H2025, another reactivated PSV is expected to be operational, adding to our capacity for 2025.

Contracts on hand as at end February 2025 amounted to US$66million.

About Wintermar Offshore Marine Group

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

DISCLAIMER
Certain statements made in this publication involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to business and operations of PT Wintermar Offshore Marine Tbk and Subsidiaries (the Company) are based on management’s expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Certain statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements. The Company makes no commitment, and disclaims any duty, to update or revise any of these statements. This publication is for informational purposes only and is not intended as a solicitation or offering of securities in any jurisdiction. The information contained in this publication is not intended to qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction applicable to the Company and should not be relied upon for the purpose of making investment decisions concerning any securities of the Company.

Wintermar Offshore (WINS:JK) Reports 9M2024 Results

Wintermar Offshore Marine (WINS:JK) has announced results for 9M2024. Wintermar’s 9M2024 Net operating profit doubled to US$11.8million (+127.1% YOY) from US$5.2 million in 9M2023, contributed by higher charter rates in DP vessels and additional vessels commencing operations, while Net Attributable Profit which includes gains from vessel sales jumped to US$19.7million for 9M2024 compared to US$2.8million in 9M2023.

Owned Vessel Division

In the Owned Vessel segment, Revenues jumped by 36.7% YOY to US$45.0 million for 9M2024, up from US$33.0 million in 9M2023. This growth was fueled by the continued rise in OSV charter rates particularly in the higher tier segment. Gross Profit from Owned Vessels rose by 124.7% YOY to US$15.5 million in 9M2024, compared to US$6.9 million in the same period last year with average charter rates 23.1% higher in 9M2024 compared to 9M2023 while vessel utilization improved slightly from 65% in 9M2023 to 67% in 9M2024.

On a Quarterly basis, Owned Vessel Revenue increased by 35.1% YOY from US$13.2million in 2Q2024 to US$17.8million in 3Q2024. This strong growth was primarily driven by the deployment of two Platform Supply Vessels (PSVs) on long-term contracts at market rates after coming off a lower priced contract in April 2024, and a reactivated PSV coming into operation in August. Gross Profit increased by an impressive 81.8% QOQ, reaching US$7.5 million in 3Q2024, compared to US$4.1 million in 2Q2024, highlighting the significant widening in Owned Vessel gross margin to 41.9% in 3Q2024 from 31.1% in 2Q2024.

Chartering Division and Other Services

The Chartering Division also enjoyed an increase Gross Profit by 20.9% YOY, despite a 11.2% YOY decline in revenue, from US$12.9 million in 9M2023 to US$11.4 million in 9M2024.

Revenue from Other Services declined by 6.5% YOY, from US$5.4 million in 9M2023 to US$5.0 million in 9M2024. Gross Profit also decreased during this period, from US$2.3 million to US$1.7 million.

Total Revenue rose 20.1% YOY to US$61.5million with Total Gross Profit of US$18.4 million(+81.2%YOY) for 9M2024 as compared to Total Revenue of US$51.2million and Total Gross Profit of US$10.1million in 9M2023.

Direct Expenses and Gross Profit

Reflecting the Company’s expanding operations and rising operational demands, Direct Costs for the Owned Vessel Division increased by 13.4% YOY to US$29.6million in 9M2024 compared to 9M2023. Depreciation costs grew by 8.2% YOY reaching US$10.1 million, due to the addition of vessels to the fleet. Crewing Expenses rose by 12.7% to US$7.6 million, due to the higher salaries and allowances required for Dynamic Positioning (DP) vessels and more vessels operating outside Indonesia.

For 9M2024, Maintenance Costs increased by 39.8% YOY, to US$5.9 million, while fuel bunker costs increased by 16.8% YOY, totaling US$2.2 million. These cost increases were driven by major docking activities for certain vessels and the preparation of higher-tier vessels for long-term contracts.

Indirect Expenses and Operating Profit

Total Indirect Expenses increased by 33.1% YOY, rising from US$4.9 million in 9M2023 to US$6.6 million. The largest contributor to this increase came from salaries (+31.6% YOY to US$4.7million) due to a growing workforce in line with business expansion and bonuses paid in 2Q2024 while employee benefits were normalized in 2024 after an adjustment in 2023.

Marketing expenses increased by 275% YOY from US$0.09 million in 9M2023 to US$0.4 million in 9M2024, due to marketing fees to support the Company’s international growth.

Despite these cost increases, Wintermar successfully improved operational performance, reflected in a 127.1% YOY jump in operating profit, which grew from US$5.2 million in 9M2023 to US$11.8 million in 9M2024.

Other Income, Expenses and Net Attributable Profit

Interest Expenses continued to fall from US$0.9 million in 9M2023 to US$0.8 million in 9M2024, reflecting a -19.1% YOY decline as outstanding bank debt decreased. The Company is now cash positive, leading to a significant increase in interest income from US$0.03 million in 9M2023 to US$0.3 million in 9M2024. This improvement in cash flow was driven by better operational performance and substantial gains from the sale of vessels.

Equity in net earnings of associates turned around with a gain of US$2.1 million in 9M2024 compared to a loss of US$0.3 million in 9M2024, as operational performance from our associated companies also benefited from the industry upturn.

The sale of vessels resulted in a substantial gain of US$17.4 million from the disposal of fixed assets in 1H2024, effectively crystalizing the monetary value of the fleet. This cash inflow provided management with the opportunity to reinvest in similar but younger vessels. In August 2024, the Company took delivery of a Platform Supply Vessel built in 2022, which is expected to be operationally ready by early December 2024. Non controlling interest was significantly higher at US$7.5million compared to only US$0.03million in 9M2023 to account for the minority share of earnings from the PSV business which is 51% controlled by Wintermar.

Net Attributable Profit for 9M2024 totaled US$19.7million, a six fold increase (+605.2%YOY) from US$2.8million in 9M2023, due to a combination of higher gross profit from a strong performance in the core business as well as the gain from sale of vessels.

The group’s EBITDA increased by 50.8% YOY for 9M2024, reaching US$22.1 million.

Industry Outlook

The world is navigating turbulent times, with escalating conflicts in the Middle East and Russia’s ongoing war in Ukraine affecting some of the world’s most important oil producing countries. Geopolitical uncertainty has exposed the underlying vulnerabilities of the global energy system, which has contributed to a new investment cycle in upstream oil and gas as governments seek to ensure energy security.

The current economic outlook points to global oil demand remaining resilient. According to the International Energy Agency (IEA), global demand for oil is expected stay above 100 million barrels per day (mb/d) through 2050. This sustained demand is driven by industrial uses, heavy-duty transportation, and petrochemical needs. The transition to renewable energy is reshaping consumption patterns, but oil and natural gas will continue to play a crucial role in meeting global energy needs.

Southeast Asia remains heavily reliant on energy imports, especially oil and natural gas, to meet its growing demand. According to the IEA’s World Energy Outlook, Southeast Asia is projected to become a net importer of natural gas by 2030, while China and India are also seeing a significant rise in their reliance on imported energy. China’s oil imports are expected to surpass 80% by 2050, increasing its vulnerability to global supply disruptions.

The Indonesian government has introduced a new gross split scheme aimed at attracting upstream investments by simplifying contractual terms and providing more favorable conditions for oil and gas contractors. This welcome move demonstrates the political will to ramp up upstream oil and gas investments in Indonesia, needed to mitigate natural production declines and the widening oil trade deficit in recent years.

Business Prospects

Wintermar continues to strategically strengthen its financial position and revitalize its fleet through targeted investments. As of the first nine months of 2024, the Company has invested in USS$38.8 million in fleet expansion to position its fleet in anticipation of future demand. This includes an Accommodation Work Barge (AWB), a 2022 built Platform Supply Vessel (PSV), and three newly constructed heavy load barges scheduled for delivery by the end of the year. These investments not only modernize Wintermar’s fleet but also align it with expected OSV demand as early-stage offshore drilling and exploration projects transition into the construction and production phases.

These acquisitions have been financed through a combination of internal cash flow, bank loans and the sale of several low-yielding vessels. The success in securing new loans has demonstrated support from banks and enables the Company to optimize the capital structure.

Contracts on hand as at end September 2024 amounted to US$71.4 million.

Dividend payment

Based on the strong results in the first 9 months of 2024, the Directors have declared the payment of an interim dividend of Rp8 per share, totaling Rp34.92billion or US$2.25million. More information on the recording date can be found on our website.

About Wintermar Offshore Marine Group

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 (WINS:JK) Reports 1H2024 Results

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 long term contract for two PSVs working in Indonesia. — 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

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 (WINS:JK) Reports 1Q2024 Results

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

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 (WINS:JK) Reports FY2023 Results

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

Wintermar Offshore (WINS:JK) Invests in Bruneian Company for Offshore Supply Vessel Operations

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.

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

Wintermar Offshore (WINS:JK) Reports 9M2023 Results

Wintermar Offshore Marine (WINS:JK) has announced results for 9M2023. Wintermar records 9M2023 Net Attributable Profit of US$2.8million compared to a loss of US$2.1million in 9M2022, on the back of better margins from a rise in fleet utilization and charter rates.

Rising fleet utilization through 3Q2023 along with better charter rates contributed to a 30.7%QOQ increase in revenue for 3Q2023, and boosted the gross profit margin to 23.4% for the quarter compared to 15.9% for 2Q2023.

For 9M2023, total revenue was up 23.3%YOY to US$51.2million of which US$20million was booked in 3Q2023.

Owned Vessel Division

In 3Q2023, the Owned Vessel Division saw a 43.7%QOQ jump in revenue to US$13.7million from US$9.5million in 2Q2023, as several mid and high tier vessels started charter contracts with higher daily rates. Direct costs for Owned Vessels rose by 17.0%YOY, largely from maintenance and operational costs from mobilizing vessels to new contracts.

Utilization of the fleet rose steadily through the quarter resulting in average utilization of 70% for 3Q2023, up from 56% in 2Q2023.

For 9M2023 Gross Profit from Owned Vessels reached US$6.8million (+242.9% YOY).

Chartering and Other Services

Revenue from the Chartering Division stayed flat at US$12.9million (+0.8%YOY), while gross profit for the Division in 9M2023 was US$1million, lower than US$1.5million in 9M2022.

Gross Profit from Other Services had a 29.6% YOY increase to US$2.3million for 9M2023.

Indirect Expenses and Operating Profit

Throughout the 9M2023, overall indirect expenses increased by 5.8% YOY to US$4.9 million. As business momentum picked up, there was an increase in staff salaries to US$3.6 million (+9.3% YOY), primarily due to the hiring of additional employees.

Operating Profit jumped to US$5.2million for 9M2023 (+778.1%) compared to only US$0.6million in 9M2022.

Other Income, Expenses and Net Attributable Profit

Interest expenses continued to fall by 10.0%YOY due to regular loan repayments while associated companies recorded a loss of US$0.3 million compared to a profit US$0.5milllion in 9M2022. Total Net Income before Taxes amounted to US$3.6 million for 9M2023, compared to a loss of US$2.4million in 9M2022.

As a result, the Company recorded a turnaround with Net Attributable profit of US$2.8million as compared with a loss of US$2.1million in 9M2022.

The group’s EBITDA also jumped by 50.4% YOY to US$14.7 million.

Outlook for O&G and the OSV Industry

Voluntary production cuts by Saudi Arabia and Russia while China, India, and Brazil continue to drive strong oil demand.

There has been a consistent increase in offshore oil and gas investments with long term projects that will drive utilization of offshore rigs and OSV demand into 2028.

Over the past nine months, the availability of Offshore Support Vessels (OSVs) has seen a decline due to drilling projects in the Middle East, Africa, and Latin America drawing the operationally ready OSVs toward the region. This tightness subsequently led to South East Asian rates finally beginning to increase in 2H2023.

Despite the rising demand, major OSV companies are still hesitant to invest in new vessels, emphasizing capital conservation and concerns about vessel longevity in the context of the ongoing energy shift towards renewable fuels for propulsion. This indicates that the upward momentum on charter rates will continue.

Company Outlook

Wintermar expects the strong performance to be maintained throughout the remainder of 2023. Charter rates are rising, but have not yet recovered to levels seen in the last peak. We expect the demand for high tier OSVs to gradually drive charter rates higher in the coming years. There is a structural shift in upstream oil and gas investments which favours offshore over onshore. In view of the high levels of approved investments in offshore through towards 2028, this recovery is likely to continue for the coming few years.

As at end of September 2023, the Company’s Contracts on hand amounted to US$76 million.

About Wintermar Offshore Marine Group

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