JAKARTA, July 29, 2025 - (ACN Newswire) - Wintermar’s Operating Profit jumped 55.8%YOY to US$8.9million for 1H2025,  derived from 17% growth in Owned Vessel Revenue in 1H2025 and higher gross margins from better fleet mix and higher charter rates.

Owned Vessel revenues were higher in 1H2025 compared to 1H2024 despite lower utilization due to better yielding vessels in operation in 1H2025.         

Owned Vessel Division

Although the number of vessels has not changed, fleet composition has improved with 2 additional PSVs in operation in 1H2025 as well as 3 newly delivered HLBs which 2 units commenced work in April 2025 and 1 unit in July 2025.  With 4 additional units of higher yielding vessels in operation compared to last year, gross margins from the Owned Vessels Division expanded from 29.6% in 1H2024 to 39.1% in 1H2025.  This resulted in a 54.4%YOY jump in Gross Profit growth for the Owned Vessel Division to US$12.4million, despite a fall in utilization from 63.7% in FY2024 to 57.9% in 1H2025.

Despite a slower first half of the year which caused a dip in utilization, the Company reaped the benefit of improving average charter rates from a higher number of operational vessels at the higher value segment of the fleet.  Owned Vessel Expenses increased by 22%QOQ from 1Q2025 to 2Q2025 due to an increase of fleet as well as Operational costs.                                       

Chartering Division and Other Services

Chartering revenues experienced a sharp decline, as several vessels ended a contract which has not been renewed. Gross Profit from Chartering fell from US$0.7million in 1H2024 to US$0.2million in 1H2025.

Gross Profit from Other Services fell to US$1.4million (-11.5%YOY) in1H2025 in line with the lower vessel utilization for the period compared to last year.                     

Direct Expenses and Gross Profit

Total Owned Vessel Direct Expenses rose only slightly by 1.3%YOY to US$19.4million for 1H2025. The largest increase came from Fuel Bunker costs which rose to US$1.4million (+46.1%YOY) due to the mobilization of vessels to overseas contracts. All other costs were lower except for Fleet Maintenance which rose 2.2%YOY to US$4.1million in 1H2025.

On a quarterly basis, there were higher operational and maintenance costs in 2Q2025 compared to 1Q2025 due to the preparation and mobilization of a mid-tier vessel for a long-term contract in the Middle East.                     

Indirect Expenses and Operating Profit

Total Indirect Expense rose by 11.0%YOY to US$5.1million in 1H2025. The largest increase came from salary and employee benefits which rose by 10.0%YOY and 16.9%YOY to US$3.8million and US$0.2million respectively. With the improvement in business conditions and a wider geographic spread of operations, there was an increase in the number of employees in 2025 compared to last year. Telecommunications and marketing costs also rose with more international projects and higher costs of bid bond fees in the tender process.

Due to good cost control, Operating Profit for 1H2025 jumped by 55.8% to US$8.9million from US$5.7million in the previous year.                 

Other Income, Expenses and Net Attributable Profit

As the Company refinanced the newly acquired vessels from the past year, interest expenses rose to US$1million for 1H2025, while interest income also doubled to US$0.3million due to strong operational cash flow.

There was a turnaround in Equity in net earnings of Associates from a loss of US$0.4million in 1Q2025 to a profit of US$0.7million in 2Q2025. This resulted in a gain of US$0.6million from Investment in Associates for 1H2025, slightly lower than US$0.8million in 1H2024.

During 2Q2025, management successfully sold a smaller mid-tier vessel for a profit, resulting in a net gain on sale of fixed asset of US$1.7million. This is in line with the continued fleet renewal program where smaller mid-tier vessels which are lower yielding will continue to be sold off to concentrate the fleet on larger and higher yielding vessels. However, this cannot compare with the significant one-off gain of US$17.4million recorded in 1H2024 primarily from the sale of a platform supply vessel. Therefore, total Other Income was US$1.7million for 1H2025 as compared to US$17.4million in 1H2024 which included the one-off vessel sale.

Net income before tax for 1H2025 totalled US$10.7million, compared to US$23.2million in 1H2024. This 53.8% decline does not reflect the underlying improvement in the core business as 1H2024 profit included the sizable one-off gain from the vessel sale. 

Non-Controlling Interest fell from US$6.4 million in 1H2024 which included some profit from the sale of vessel to US$2.7 million in 1H2025. The group’s EBITDA jumped by 25.8%YOY for 1H2025, reaching US$16.0 million compared to US$12.7million in 1H2024.

Stripping out the impact of vessel sales, the underlying profit for 1H2025 was US$ 5.4million compared to US$4.9million in 1H2024 representing a growth of 10.1%YOY.

Industry Outlook                   

There are growing signs of a pivot from renewable energy back to hydrocarbons as the world faces a growing need for energy while renewable sources of fuel are still insufficient and less economical. The continuing uncertainty in the Middle East and ongoing wars in Ukraine and Gaza have put pressure on governments around the world to seek energy security. In addition, the increasing need for energy for the “Green Transition” and data centres has led to a resurgence of demand for oil and gas. These factors have led to projections for global investment in oil and gas being maintained above US$610 billion in the coming years, with a steadily growing share invested into offshore fields. 

In Indonesia, the government has continued to push for self-sufficiency in various sectors, with energy being one of the sectors benefitting from this plan.  There are at present four sizeable strategic national projects in Indonesian offshore fields which are currently in the early stage of exploration and where production is expected from 2026-2030. These projects will sustain demand for OSVs in Indonesia in the coming years.

Business Prospects

The Company’s focus on developing a strong presence in the dynamic positioning segment is bringing in benefits of a higher blended fleet charter rate which has led to higher gross margins.  The 3 units of newly built HLB which commenced work in April to July 2025 will underpin earnings in 2H2025, and there is a third reactivated PSV expected to be operational at the end of 3Q2025. The investment cycle for oil and gas is still expected to ramp up for the next few years, providing better fleet utilization which will lead to profit upside.

The stronger cash flow arising from a low debt position has enabled the Company to continue investing into higher value vessels while selling lower yielding vessels.  The additional vessels coming into operation in 2025 will provide upside for 2026 earnings.                  

Total contracts on hand as at end June 2025 has risen to US$70.9 million.

About Wintermar Offshore Marine Group

Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.

Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd's Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.

For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel (62-21) 530 5201 Ext 401
Email: investor_relations@wintermar.com

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