Wintermar Offshore (WINS:JK) has announced its financial results for the first half of 2026, reporting a 24.4% year-on-year growth in attributable net profit to US$8.4 million. This performance was driven 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% compared to 56% in the same period last year. The owned vessel division saw margins widen to 51.7% from 39.1%, reflecting the deployment of more Platform Supply Vessels (PSVs) and higher charter rates.
However, fleet utilization in the second quarter was slightly lower than the first quarter, as the market remains dominated by spot contracts. 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 the tendering timeline for some longer-term domestic OSV contracts have prolonged volatility in fleet utilization, while the Middle East conflict has impacted vessels planned for deployment in that region.
Revenue from the chartering division continued to decline, falling 40.5% year-on-year to US$1.6 million, as management focuses on maximizing owned vessel utilization. Conversely, other services revenue rose 40.8% to US$3.4 million, driven by fee-based income. Gross profit surged 76.9% to US$24.9 million, with the owned vessels division contributing US$23.3 million. Operating profit jumped 124.6% to US$20.1 million, while EBITDA increased 76.8% to US$28.2 million.
Direct expenses for owned vessels rose 12% to US$21.7 million, largely due to higher depreciation and crewing costs from additional vessels. Maintenance costs fell slightly, and fuel costs reduced by 40% as charterers covered fuel expenses during operations. Indirect expenses declined 6.2%, offsetting higher marketing costs.
The company recorded a loss from associated companies of US$1.6 million due to lower utilization during repairs, and a forex loss of US$0.4 million from the depreciation of the Rupiah. Interest expenses fell slightly, while interest income rose. Earnings per share increased to Rp31.1 from Rp25.05 in the prior year, which had included a gain on vessel sale.
Looking ahead, the industry outlook remains strong. The Iran conflict continues to disrupt maritime traffic through the Strait of Hormuz, keeping oil prices firm and boosting upstream investment. The rapid adoption of AI is raising energy demand expectations, with more data centres being built. Offshore exploration and production capital expenditure is expected to rise until the end of the decade, with the Masela project in Indonesia breaking ground in July 2026.
Wintermar's business strategy focuses on capitalizing on the expected OSV shortage. The company is expanding through second-hand vessel purchases, newbuilds, and the acquisition of FOS, which adds Crew Transfer Vessels (CTVs) with long-term contracts. In July, Wintermar took delivery of a diesel-electric AHTS and an MSV, with two more vessels expected to be operational by 4Q2026. A new MSV order is scheduled for delivery in 2H2027, and additional CTVs will be delivered in 2027 under five-year contracts.
These investments will be funded through internal cash, bank loans, and vessel sales, and are expected to raise net gearing and add to expenses in the second half of 2026. While this may reduce net margins in the near term, the company is confident these investments will be earnings accretive in 2027, when the new vessels start operations.
