Wintermar Offshore (WINS:JK) 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, up from US$6.7 million in 1H2025. The improvement was driven by a 41.4% surge in Owned Vessel revenue to US$45 million, as more vessels became operational and fleet utilization improved to 62% from 56% in the prior-year period.
The Owned Vessel division saw margins widen significantly to 51.7% from 39.1%, attributed to a higher deployment of Platform Supply Vessels (PSVs). However, fleet utilization in the second quarter dipped slightly compared to the first quarter, as the market remains dominated by spot contracts, although charter rates are on the rise. The acquisition of Fast Offshore Supply Pte Ltd (FOS) was completed at the end of June, with earnings from FOS to be consolidated in the second half of 2026.
Despite the positive momentum, the company faces challenges, including delays in tendering for longer-term domestic OSV contracts, which prolongs volatility in fleet utilization. Additionally, the ongoing Middle East conflict has impacted some 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 higher-margin owned vessels. Conversely, Other Services revenue grew 40.8% to US$3.4 million, driven by increased fee-based income.
Direct expenses for owned vessels rose 12% to US$21.7 million, largely due to higher depreciation and crewing costs from additional vessels and certified crew for dynamic positioning operations. Total gross profit jumped 76.9% to US$24.9 million, while operating profit surged 124.6% to US$20.1 million.
EBITDA climbed 76.8% to US$28.2 million. The company recorded a loss from associated companies of US$1.6 million due to lower fleet utilization during repairs, and a forex loss of US$0.4 million on Rupiah holdings.
The industry outlook remains strong, with the Iran conflict disrupting maritime traffic through the Strait of Hormuz and keeping oil prices firm. Global investment in upstream oil and gas continues to rise, with offshore exploration taking the largest share of E&P capex. In Indonesia, strategic projects like the US$21 billion Masela project are accelerating exploration. The demand for dynamic positioning-enabled PSVs is growing, while the global fleet ages, with 47% over 15 years old, pointing to tight supply and higher charter rates.
Wintermar has embarked on a three-pronged expansion strategy: purchasing second-hand vessels, building new ones, and acquiring FOS to gain control of a fleet of new Crew Transfer Vessels (CTVs) with long-term contracts. In July, the company took delivery of two second-hand vessels, and placed an order for a new MSV. Through FOS, it will have seven existing FMPVs, with two under long-term contracts, and five new CTVs delivered in 2027, 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 the second half of 2026, temporarily reducing net margins. However, management is confident these investments will be earnings accretive in 2027, with a jump in revenue and profit when new vessels start operations.
