Wintermar Offshore (WINS:JK) has announced its financial results for the first half of 2026, revealing a 24.4% year-on-year growth in attributable net profit to US$8.4 million. This performance was underpinned by a 41.4% increase in Owned Vessel revenue to US$45 million, as more high-tier vessels became operational and fleet utilization improved to 62% from 56% in the prior year period. The company's strategic focus on owned vessels, which offer significantly higher margins, has begun to yield tangible results.
The Owned Vessel Division saw margins widen to 51.7% in 1H2026, up from 39.1% in 1H2025, driven by the deployment of more Platform Supply Vessels (PSVs). However, fleet utilization in the second quarter was slightly lower than the first, reflecting a market still dominated by spot contracts. The acquisition of Fast Offshore Supply (FOS) was completed at the end of June, with its earnings set to be consolidated in the second half of the year. Delays in tendering for longer-term domestic OSV contracts have prolonged volatility in utilization, and the Middle East conflict has impacted planned deployments in that region.
Revenue from the Chartering Division continued to decline, falling by 40.5% to US$1.6 million, as management shifted focus to owned vessels and marketing additional units. Conversely, Other Services revenue rose by 40.8% to US$3.4 million, driven by increased fee-based income. Total gross profit jumped by 76.9% to US$24.9 million, with the Owned Vessels Division contributing US$23.3 million. Direct expenses for owned vessels increased by 12% to US$21.7 million, largely due to higher depreciation and crewing costs, although fuel costs fell by 40% as charterers assumed fuel expenses during operations.
Operating profit surged by 124.6% to US$20.1 million, while EBITDA rose by 76.8% to US$28.2 million. Interest expenses declined by 6.8% to US$1.0 million, but associated companies recorded a loss of US$1.6 million due to lower utilization during repairs. 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 the prior year.
The industry outlook remains robust, with the Iran conflict continuing to disrupt maritime traffic through the Strait of Hormuz, affecting about 9.5 million barrels per day of oil and gas production. Oil prices are expected to remain firm, and global upstream investment is rising. The rapid adoption of AI is increasing energy demand, with more data centres being built. Offshore exploration has taken the largest share of E&P capex, which is expected to rise until the end of the decade. In Indonesia, strategic projects like the US$21 billion Masela project are underway. Globally, the supply of OSVs is tight, with 47% of the fleet over 15 years old, pointing to higher charter rates.
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 with long-term contracts. In July, the company took delivery of a second-hand diesel electric AHTS and an MSV, expected to be operational by 4Q2026. A new MSV order will be delivered in 2H2027. Through FOS, Wintermar will have seven FMPVs, with two under long-term contracts, and five new CTVs arriving in 2027, contracted for five years. These investments will be funded through internal cash, bank loans, and vessel sales.
While these expansions will raise net gearing and add expenses in the second half of 2026, potentially reducing net margins, management is confident they will be earnings accretive in 2027. The company also expects to reactivate a second-hand PSV in 4Q2026 and take delivery of a new-built PSV in 2Q2027. With a strengthened fleet and favorable market conditions, Wintermar is well-positioned to capitalize on the expected OSV shortage.
