Wintermar Offshore (WINS:JK) has reported a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, driven by a larger fleet of high-tier vessels and improved fleet utilization at 62%, compared to 56% in the same period last year. The company's owned vessel division saw revenue grow by 41.4% to US$45 million, with margins expanding to 51.7% 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 acquisition of Fast Offshore Supply (FOS) at the end of June means its earnings will only be consolidated in the second half of 2026. Delays in tendering for longer-term domestic OSV contracts have prolonged volatility in fleet utilization, and the Middle East conflict has impacted vessels planned for deployment in that region.
The chartering division continued to decline as management focuses on maximizing owned vessel utilization, with revenue falling 40.5% to US$1.6 million. Conversely, other services revenue rose 40.8% to US$3.4 million, driven by fee-based income. Direct expenses for owned vessels increased 12% to US$21.7 million due to higher depreciation and crewing costs, but total gross profit jumped 76.9% to US$24.9 million. Operating profit surged 124.6% to US$20.1 million, and EBITDA rose 76.8% to US$28.2 million.
Interest expenses fell slightly, while interest income increased, but 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. Earnings per share stood at Rp31.1, up from Rp25.05 in 1H2025.
The industry outlook remains robust despite ongoing Iran conflict, which has disrupted maritime traffic through the Strait of Hormuz, keeping oil prices firm. Global upstream investment is rising, with offshore exploration taking the largest share of E&P capex. The rapid adoption of AI is boosting energy demand, and offshore oil and gas capex has doubled since the 2020 trough. In Indonesia, the US$21 billion Masela project broke ground in July 2026, and there are five strategic national projects slated for accelerated exploration.
Demand for dynamic positioning-enabled PSVs is strong, while supply is constrained due to a decade of limited newbuilding orders. With 47% of the global fleet over 15 years old, tight supply is expected to push charter rates higher. To capitalize on this, Wintermar has embarked on a three-pronged expansion strategy: purchasing second-hand vessels, building new vessels, and acquiring FOS to gain control of new crew transfer vessels (CTVs) with long-term contracts.
In July 2026, Wintermar took delivery of a second-hand diesel-electric AHTS and an MSV, both undergoing repair and expected operational by 4Q2026. A new order for one MSV is slated for delivery in 2H2027. Through FOS, the company will have seven FMPVs, two with long-term contracts, and five new CTVs delivered between 1Q2027 and 2Q2027, contracted for five years. These investments will be funded via internal cash, bank loans, and vessel sales.
The expansion will raise net gearing and add expenses in the second half of 2026, potentially reducing net margins in the near term. However, management is confident these investments will be earnings accretive in 2027, with a significant jump in revenue and profit as new vessels commence operations. The company also has a second-hand PSV purchased last year expected to be reactivated in 4Q2026, and a new-built PSV due in 2Q2027.
