Wintermar Offshore (WINS:JK) has announced its financial results for the first half of 2026, reporting a 24.4% year-on-year increase in attributable net profit to US$8.4 million, compared to US$6.7 million in 1H2025. The growth was driven by a 41.4% increase in Owned Vessel revenue to US$45 million, as more vessels became operational and fleet utilization improved to 62% from 56% in the previous year. The Owned Vessel division saw its gross margins widen to 51.7% from 39.1%, reflecting a higher deployment of Platform Supply Vessels (PSVs).
The company noted that while charter rates have increased, the market remains dominated by spot contracts, leading to slight fluctuations in fleet utilization between quarters. The acquisition of Fast Offshore Supply (FOS) was completed at the end of June, with earnings from FOS to be consolidated in the second half of 2026. However, delays in the tendering timeline for some 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 ongoing conflict in the Middle East 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 utilization of owned vessels, which offer higher margins. Conversely, revenue from Other Services rose 40.8% to US$3.4 million, driven by increased fee-based income. Direct expenses for owned vessels increased 12% to US$21.7 million, largely due to higher depreciation and crewing costs associated with additional vessels and certified crew for Dynamic Positioning vessels. Total gross profit jumped 76.9% to US$24.9 million, with the Owned Vessels division contributing US$23.3 million.
Operating profit surged 124.6% to US$20.1 million, while interest expenses fell slightly and interest income rose. The company recorded a loss from associated companies of US$1.6 million due to lower fleet 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% to US$28.2 million.
The industry outlook remains positive, with the Iran conflict continuing to disrupt maritime traffic through the Strait of Hormuz and keeping oil prices firm. Global investment in upstream oil and gas is rising, with offshore exploration taking the largest share of E&P capex. The rapid adoption of AI is increasing energy demand, and offshore oil and gas capex has doubled since 2020. In Indonesia, the US$21 billion Masela project broke ground in July 2026, highlighting the region's potential. Globally, there is stronger demand for dynamic positioning-enabled PSVs, while the supply of vessels is limited due to a near-decade absence of newbuilding orders. With 47% of the global fleet over 15 years old, tight supply is expected to drive higher charter rates.
To capitalize on this momentum, 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, the company took delivery of a second-hand diesel electric Anchor Handling Tug Supply (AHTS) and a second-hand Multi-role Support Vessel (MSV), both expected to be operational by 4Q2026. A new MSV order is scheduled for delivery in 2H2027. The FOS acquisition adds seven existing Fast Crew and Maintenance Vessels (FMPVs), with two under long-term contracts, and five additional CTVs to be delivered in 1Q-2Q2027, contracted for five years with options. These investments will be funded through internal cash, bank loans, and vessel sales.
The expansion will raise net gearing and add expenses in 2H2026, potentially reducing net margins in the near term. However, management is confident these investments will be earnings accretive in 2027, with a significant jump in revenue and profit when the new vessels commence operations. The company also expects to reactivate a second-hand PSV in 4Q2026 and take delivery of a new built PSV in 2Q2027.
