Wintermar Offshore (WINS:JK) reported a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, as the company benefited from a stronger offshore vessel market and an expansion strategy aimed at capitalizing on expected vessel shortages. The Jakarta-based offshore support vessel operator saw fleet utilization improve to 62% in 1H2026, up from 56% in the same period last year, and additional high-tier vessels entered operation.
The Owned Vessel division was the main growth driver, with revenue surging 41.4% to US$45 million, as more vessels became operational. Margins widened to 51.7% from 39.1%, reflecting a higher proportion of platform supply vessels (PSVs) in the fleet. However, management noted that fleet utilization in the second quarter dipped slightly from the first, as the market remains dominated by spot contracts, though charter rates are higher. The acquisition of Fast Offshore Supply (FOS) was completed at the end of June, and its earnings will only be consolidated in the second half of 2026. Delays in tendering for some longer-term domestic OSV contracts have prolonged utilization volatility, and the Middle East conflict has impacted vessels planned for that region.
Revenue from the Chartering division continued to decline, falling 40.5% to US$1.6 million, as management focuses on maximizing owned vessel utilization, which offers higher margins. In contrast, revenue from Other Services 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, largely due to higher depreciation and crewing costs for additional vessels and certified crew for dynamic positioning and international operations. Fuel costs fell 40% as charterers bear fuel expenses when vessels are operating. Gross profit jumped 76.9% to US$24.9 million, with the Owned Vessels division contributing US$23.3 million.
Operating profit soared 124.6% to US$20.1 million. Interest expenses declined slightly, but associated companies recorded a loss due to fleet repairs, and a forex loss on Rupiah cash holdings weighed on results. EBITDA rose 76.8% to US$28.2 million. These results came despite a US$1.6 million gain on vessel sale in the prior year period.
The industry outlook remains robust. The ongoing Iran conflict continues to disrupt maritime traffic through the Strait of Hormuz, with about 9.5 million barrels per day of oil and gas production shut in. Oil prices are expected to stay firm, while global upstream investment rises. The rapid adoption of AI is boosting energy demand expectations, with more data centres being built. Offshore exploration is taking the largest share of exploration and production (E&P) capex, and offshore oil and gas capital expenditure has doubled since the 2020 trough. In Indonesia, five strategic national projects are slated for accelerated exploration, including the US$21 billion Masela project, which broke ground in July 2026. Demand for dynamic positioning-enabled PSVs is strong, while the global fleet is aging, with 47% of vessels over 15 years old and limited newbuild orders since 2015, pointing to tighter supply and higher charter rates.
To capitalize on this momentum, Wintermar has launched a three-pronged expansion plan: purchasing second-hand vessels, building new vessels, and acquiring FOS to gain a fleet of crew transfer vessels (CTVs) with long-term contracts. In July, the company took delivery of two second-hand diesel-electric vessels, which are undergoing repairs and expected to be operational by 4Q2026. It also placed an order for one new multi-role support vessel (MSV) for delivery in 2H2027. Through the FOS acquisition, Wintermar adds seven existing fast crew boats, two with long-term contracts, and five new CTVs to be delivered in 2027, all contracted for five years. These investments will be funded through internal cash, bank loans, and vessel sales.
Management cautions that the expansion will raise net gearing and add expenses in the second half of 2026, potentially reducing net margins near term, but expects the investments to be earnings accretive in 2027 when new vessels start operations. The company also has a second-hand PSV to be reactivated in 4Q2026 and a newbuild PSV for delivery in 2Q2027. Wintermar’s strategy positions it to benefit from the expected tightening of OSV supply and rising demand, though near-term financial results may be pressured by expansion costs.
