Wintermar Offshore (WINS:JK) has reported a 24.4% year-on-year (YOY) increase in attributable net profit to US$8.4 million for the first half of 2026, as the company benefits from an improved offshore market and strategic fleet expansion. The company's owned vessel division saw revenue grow 41.4% YOY to US$45 million, with fleet utilization rising to 62% from 56% in the same period last year.
The owned vessel division's gross profit margin widened to 51.7% in 1H2026, up from 39.1% in 1H2025, as more platform supply vessels (PSVs) were deployed. However, utilization in the second quarter was slightly lower than the first quarter, reflecting the market's continued reliance on spot contracts, though charter rates are improving. The acquisition of Fast Offshore Supply (FOS) was completed at the end of June, so 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, as a large portion of the fleet remains on short-term contracts. Additionally, the conflict in the Middle East has impacted some vessels planned for deployment in that region. Despite these challenges, total gross profit jumped 76.9% YOY to US$24.9 million, with the owned vessels division contributing US$23.3 million.
Direct expenses for owned vessels rose 12% YOY to US$21.7 million, largely due to higher depreciation and crewing costs from additional vessels and certified crew. Fuel costs reduced by 40% YOY as charterers cover fuel expenses when vessels are operational. Indirect expenses fell 6.2% YOY, leading to an operating profit increase of 124.6% YOY to US$20.1 million.
Interest expenses declined 6.8% YOY to US$1.0 million, while interest income rose 25.7% to US$0.4 million. 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 cash held in Rupiah due to currency depreciation. EBITDA rose 76.8% YOY to US$28.2 million.
The industry outlook remains robust. Despite ongoing Iran conflict, oil prices are expected to stay firm, and global investment in upstream oil and gas continues to rise. 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, 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 the supply of vessels is limited due to a nearly decade-long absence of newbuilding orders. With 47% of the global fleet over 15 years old, tight supply is expected, pointing to higher charter rates. Wintermar has embarked on a three-pronged expansion plan: purchasing second-hand vessels, building new vessels, and acquiring FOS to gain control of a fleet of new Crew Transfer Vessels (CTVs) with long-term contracts.
In July, Wintermar took delivery of one second-hand diesel electric (DE) Anchor Handling Tug Supply (AHTS) and one DE Multi-role Support Vessel (MSV), expected to be operational by 4Q2026. A new MSV order was placed for delivery in 2H2027. Through FOS, the company will have 7 existing FMPVs, 2 with long-term contracts, and 5 new CTVs delivered between 1Q2027 and 2Q2027, contracted for 5 years. These investments will be funded through internal cash, bank loans, and vessel sales.
The expansion will raise net gearing and add expenses in 2H2026 before the new vessels start work in 2027. While this may reduce net margins in the near term, management is confident these investments will be earnings accretive in 2027. Additionally, a second-hand PSV purchased last year is expected to be reactivated in 4Q2026, and a new built PSV will be delivered in 2Q2027.
Wintermar Offshore Marine Group, with nearly 50 years of experience, operates a fleet of more than 48 offshore support vessels. The company is the first shipping company in Indonesia certified with an Integrated Management System by Lloyd's Register Quality Assurance, holding ISO 9001:2015, ISO 14001:2015, and OHSAS 18001:2007 certifications. For more information, visit www.wintermar.com.
