Wintermar Offshore (WINS:JK) announced a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, driven by improved fleet utilization and the deployment of additional high-tier vessels. The company's owned vessel division saw revenue grow 41.4% to US$45 million, while fleet utilization rose to 62% from 56% in the same period last year.
The owned vessel segment's margins widened significantly to 51.7% in 1H2026, up from 39.1% in 1H2025, as more platform supply vessels (PSVs) were deployed. However, fleet utilization in the second quarter was slightly lower than the first quarter, reflecting a market still dominated by spot contracts, albeit at higher charter rates. The completion of the Fast Offshore Supply (FOS) acquisition at the end of June means its earnings will only be consolidated in the second half of 2026.
“The conflict in the Middle East has impacted some vessels planned for deployment in that region, and delays in tendering for longer-term domestic OSV contracts have prolonged volatility in fleet utilization,” the company noted. Despite these challenges, total gross profit surged 76.9% to US$24.9 million, with the owned vessel division contributing US$23.3 million. Operating profit more than doubled, rising 124.6% to US$20.1 million.
The chartering division continued to shrink as management focuses on maximizing owned vessel utilization, with revenue falling 40.5% to US$1.6 million. In contrast, other services revenue grew 40.8% to US$3.4 million, driven by higher fee-based income. Direct expenses for owned vessels increased 12% to US$21.7 million, primarily due to higher depreciation and crewing costs from additional vessels and certified crew for dynamic positioning vessels. Fuel costs decreased 40% as charterers covered fuel expenses during operations.
Net profit was also supported by lower interest expenses and higher interest income, though associated companies recorded a loss of US$1.6 million due to fleet repairs. A forex loss of US$0.4 million was incurred on Rupiah-denominated cash due to currency depreciation. Earnings per share rose to Rp31.1 from Rp25.05, and EBITDA climbed 76.8% to US$28.2 million.
The company highlighted a robust industry outlook, with the Iran conflict disrupting maritime traffic through the Strait of Hormuz and shutting in about 9.5 million barrels per day of oil and gas production. Oil prices are expected to remain firm, and global upstream investment continues to rise, particularly in offshore exploration, which now takes the largest share of exploration and production (E&P) capex. The rapid adoption of AI is also boosting energy demand expectations, with more data centres being built. In Indonesia, strategic projects like the US$21 billion Masela project are accelerating exploration.
Wintermar is executing a three-pronged expansion strategy: purchasing second-hand vessels, building new vessels, and acquiring FOS to gain control of crew transfer vessels (CTVs) with long-term contracts. In July, the company took delivery of two second-hand diesel-electric vessels, expected operational by 4Q2026, and placed an order for a new multi-role support vessel for delivery in 2H2027. The FOS acquisition brings seven fast crew boats, with two under long-term contracts, and five new CTVs to be delivered between 1Q2027 and 2Q2027, already contracted for five years.
These investments will be funded through internal cash, bank loans, and vessel sales, and are expected to raise net gearing and expenses in 2H2026, potentially reducing net margins in the near term. Management remains confident that the investments will be earnings accretive in 2027, with a significant jump in revenue and profit as new vessels start operations. The company also expects to reactivate a second-hand PSV and take delivery of a new PSV in 2Q2027, further expanding its fleet.
The global OSV market is poised for tight supply, as 47% of the fleet is over 15 years old and no significant newbuild orders have been placed since 2015. This supply-demand imbalance, combined with rising offshore investment, points to higher charter rates, benefiting companies like Wintermar that are expanding their high-tier fleet.
