Wintermar Offshore Marine Group reported a 31% year-over-year increase in operating profit to US$23.3 million for the fiscal year ending December 31, 2025, with core profit rising 19.2% to US$18 million. This performance demonstrates the company's successful navigation of a complex offshore market while preparing for anticipated industry growth driven by global energy security priorities.
The company's owned vessel division saw revenue increase 13.8% to US$70.7 million despite softer charter rates and lower offshore activity. Gross margins for owned vessels expanded to 41.7% from 36.1% in 2024, achieved through strategic fleet optimization that included operating more Dynamic Positioning (DP) equipped vessels. By December 2025, Wintermar had seven Platform Supply Vessels (PSVs) operational compared to five at the end of 2024, with an additional PSV purchased in late 2025 expected to become operational by the second half of 2026.
Total gross profit rose 24.1% to US$32.7 million, while operating expenses showed mixed trends. Crewing costs increased 10.5% to US$11.4 million due to more overseas contracts and DP vessels in operation, and depreciation rose 10.4% to US$14.8 million from fleet additions. However, fuel bunker costs decreased significantly by 26% as idle vessels were berthed in Batam using shore power, and maintenance costs fell 2.9% to US$7.3 million.
Indirect expenses increased 10% to US$9.4 million, primarily driven by salary costs rising 11.9% to US$6.5 million as employee strength grew to 252 from 244. This expansion in technical and operations positions represents strategic preparation for fleet scaling. Marketing expenses also increased 17.2% due to tender participation costs, while investments in new subsidiaries contributed to higher office utility expenses.
The company's financial position remained strong with increased cash flow from operations and continued net cash position. Interest expenses rose 83.5% to US$2.1 million as the company took on more debt to refinance vessels, while interest income doubled to US$1.0 million. Associated companies contributed US$4.1 million, a 71.5% increase from improved business conditions. EBITDA increased 21.8% to US$38.4 million, reflecting enhanced operational efficiency and cash generation capabilities.
Industry dynamics are shifting significantly as geopolitical risks in 2025 prompted governments worldwide to prioritize energy security over long-term climate goals. Simultaneously, accelerated adoption of Artificial Intelligence across sectors has expanded data center requirements, contributing to increased power demand. The International Energy Agency revised electricity demand growth upward to 3.7% for 2026, exceeding the 2015-2023 average of 2.6% annually. These factors have driven increased investment in oil and gas exploration, particularly in deepwater drilling, creating positive demand outlook for offshore support vessels, especially DP-equipped units.
Wintermar's strategic positioning aligns with these industry trends. Indonesia alone has four government-identified strategic deepwater drilling projects scheduled for production between 2027 and 2030, with longer-term contracts expected to be awarded as projects ramp up in late 2026. The company ended 2025 with US$59.1 million in contracts on hand and plans substantial fleet expansion, budgeting more than double its 2025 capital expenditure of US$41.7 million for 2026. This expansion will focus on growing the dynamic positioning fleet through direct vessel purchases or corporate acquisitions, funded by internal cash flow and bank loans.
The company's performance translated to earnings per share of Rp75.80 for FY2025. For more information about Wintermar Offshore Marine Group, visit https://www.wintermar.com. The original release can be viewed at https://www.newmediawire.com.
