PT Wintermar Offshore Marine Tbk (WINS:JK) has invested US$13.9 million out of total planned capex of US$35 million for 2024, anticipating higher demand for OSVs driven by increased offshore investments and tight supply.
During the Virtual Public Expose on 21 June 2024, PT Wintermar Offshore Marine Tbk (Wintermar) updated on strategic plans to expand its fleet to capitalize on the anticipated growth in the oil and gas industry. The Company anticipates higher charter rates to come as investment into offshore deepwater oil and gas (O&G) fields and recent O&G discoveries have propelled demand for offshore supply vessels (OSV) while supply remains constrained.
By the end of May 2024, Wintermar’s fleet comprised 42 vessels, with a focus on the high value segment to drive future profitability. Wintermar has placed orders for two Heavy Load Barges (HLB), which are expected to be delivered by year end, and one Accommodation Work Barge (AWB) to its fleet. This was funded by internal cash flow and the sale of two low-yielding vessels, including one Anchor Handling Tug (AHT) and one Fast Utility Vessel (FUV). In April, one older Platform Supply Vessel (PSV) was sold at favorable valuation. Two PSVs are currently undergoing reactivation and are expected to commence operations by the end of the second half of 2024.
Fleet utilization in the 5-month period till end May 2024 was 68%, similar to the utilization rate in 2023. This reflects the current early stage of the oil and gas investment cycle with shorter term contracts associated with exploration activities. However, the average charter rates for the same 5-month period rose 23.1% for high-tier vessels and 14.5% for mid-tier vessels compared to the average for the full year 2023. The Company expects further increases in charter rates and utilization in the second half of 2024.
Finance Director Janto Lili reported that the Company’s Gross Profit for the 1Q2024 reached US$5.0 million, reflecting a significant improvement compared to 1Q2023 of US$3.0 million. This increase was driven by additional higher-value vessels starting operations and higher charter rates, leading to margin expansion. The gross profit margin increased to 27.1% in the first quarter of 2024, compared to 20.7% for the full year 2023. Wintermar’s low net gearing of below 1% positions the Company well to fund growth initiatives and capitalize on market opportunities. The strong financial performance is expected to continue, supported by the anticipated increase in charter rates and fleet utilization in 2H2024.
Managing Director Sugiman Layanto expressed confidence in the coming years, in anticipation of continued strong demand for offshore support vessels driven by rising investments in deepwater oil and gas projects. This is in line with the Company’s strategy in recent years to focus the fleet on higher-value vessels including dynamic positioning vessels. This positive outlook comes at a time when the supply for OSVs remains tight due to the industry’s downturn over the past years, which bodes well for sustained higher charter rates.
For the future, Wintermar will continue to focus on the selective acquisition of higher-value vessels to improve overall fleet profitability. The Company is actively seeking fleet expansion opportunities and is developing in house digital applications to enhance operational capacity through technology. Wintermar’s strategy includes targeting high-tier and specialized vessels to meet the increasing demand from deepwater and ultra-deepwater projects. Additionally, the Company aims to strengthen its presence in international markets to capitalize on higher charter rates and expanding opportunities.
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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 .
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