Wintermar Offshore Reports 24.4% Increase in Attributable Net Profit for 1H2026

Wintermar Offshore (WINS:JK) has announced its financial results for the first half of 2026, reporting a 24.4% year-on-year increase in attributable net profit to US$8.4 million. This growth was driven by a 41.4% rise in Owned Vessel revenue to US$45 million, as more vessels were operational and fleet utilization improved to 62% from 56% in the prior-year period. The Owned Vessel division saw margins widen to 51.7% from 39.1%, largely due to a higher deployment of platform supply vessels (PSVs).

Despite the positive results, the company noted that fleet utilization in the second quarter was slightly lower than the first quarter, as the market remains dominated by spot contracts, although charter rates are higher. The acquisition of Fast Offshore Supply (FOS) was completed at the end of June, and its earnings will only be consolidated in the second half of 2026. Additionally, delays in tendering for some longer-term domestic OSV contracts have prolonged volatility in fleet utilization, while the Middle East conflict has impacted vessels planned for deployment in that region.

The Chartering division continued to decline, with revenue falling 40.5% to US$1.6 million, as management focuses on maximizing Owned Vessel utilization, which offers higher margins. Conversely, revenue from Other Services rose 40.8% to US$3.4 million, driven by increased fee-based income. Direct expenses for Owned Vessels increased 12% due to higher depreciation and crewing costs, but fuel costs decreased 40% as charterers cover fuel when vessels are in operation. Total gross profit jumped 76.9% to US$24.9 million, and operating profit surged 124.6% to US$20.1 million.

Interest expenses fell 6.8% to US$1.0 million, while interest income rose 25.7% to US$0.4 million. Associated companies recorded a loss of US$1.6 million due to lower utilization during repairs and maintenance. A forex loss of US$0.4 million was incurred on Rupiah-denominated cash due to currency depreciation. EBITDA rose 76.8% to US$28.2 million.

Looking ahead, the industry outlook remains positive despite ongoing geopolitical tensions. The Iran conflict continues to disrupt maritime traffic through the Strait of Hormuz, keeping oil prices firm and driving upstream investment. The rapid adoption of AI is increasing energy demand, with more data centers being built, and offshore exploration has taken the largest share of global E&P capex. In Indonesia, the US$21 billion Masela project broke ground in July 2026, highlighting strong domestic activity.

Wintermar is executing a three-pronged expansion strategy to capitalize on the expected OSV shortage: acquiring second-hand vessels, building new ones, and acquiring FOS to gain control of a fleet of crew transfer vessels with long-term contracts. In July, the company took delivery of two second-hand vessels undergoing repair and modification, and placed an order for one new MSV for delivery in 2H2027. Through FOS, it will have seven existing FMPVs and five new CTVs delivered between 1Q2027 and 2Q2027, all contracted for five years with options. These investments will be funded through internal cash, bank loans, and vessel sales.

While the expansion will raise net gearing and increase expenses in the second half of 2026, potentially reducing net margins, management is confident these investments will be earnings accretive in 2027, when new vessels start operations and revenue and profit are expected to jump. With 47% of the global OSV fleet over 15 years old and limited newbuilds since 2015, tight supply is expected to lead to higher charter rates, positioning Wintermar for growth.