Wintermar Offshore (WINS:JK) has announced its financial results for the first half of 2026, reporting a 24.4% year-on-year (YOY) increase in attributable net profit to US$8.4 million, compared to US$6.7 million in 1H2025 (which included a gain on vessel sale of US$1.6 million). The growth was driven by a significant rise in owned vessel revenue, which climbed 41.4% YOY to US$45 million, as more high-tier vessels became operational and fleet utilization improved to 62% from 56% in the prior year.
The owned vessel division saw margins widen to 51.7% in 1H2026 from 39.1% in 1H2025, primarily due to the deployment of more Platform Supply Vessels (PSVs). However, fleet utilization in the second quarter was slightly lower than the first quarter as the market remains dominated by spot contracts, although charter rates have increased. The acquisition of Fast Offshore Supply Pte Ltd (FOS) was completed at the end of June, so its earnings will only be consolidated in the second half of 2026.
The company noted delays in the tendering timeline for some longer-term domestic OSV contracts, which prolongs volatility in fleet utilization as a large portion of the fleet is still on short-term contracts. Additionally, the conflict in the Middle East has impacted some vessels planned for deployment in that region.
Revenue from the chartering division declined by 40.5% YOY to US$1.6 million, as management shifted focus toward maximizing utilization of owned vessels, which offer higher margins. Gross profit from chartering fell to US$0.11 million from US$0.2 million. Conversely, other services revenue rose 40.8% to US$3.4 million, driven by more fee-based income, with gross profit increasing to US$1.5 million.
Direct expenses for owned vessels rose 12% YOY to US$21.7 million, due to higher depreciation (up 16.8% to US$8.0 million) from additional vessels, and a 25.6% increase in crewing costs for certified crew on dynamic positioning vessels. Operations costs increased 11% to US$2.3 million, while maintenance costs fell slightly by 2.5% to US$4 million. Fuel costs dropped 40% as charterers cover fuel when vessels are operational.
Total gross profit jumped 76.9% to US$24.9 million, with owned vessels contributing US$23.3 million. Indirect expenses fell 6.2% YOY, leading to an operating profit of US$20.1 million, up 124.6% YOY. Interest expenses declined 6.8% to US$1.0 million, while interest income rose 25.7% to US$0.4 million. Associated companies recorded a loss of US$1.6 million due to lower utilization during repairs. A forex loss of US$0.4 million was incurred on Rupiah cash holdings due to depreciation. EBITDA rose 76.8% to US$28.2 million.
Looking ahead, the industry outlook remains robust. The 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, and global upstream investment is rising. The rapid adoption of AI is increasing energy demand, with more data centres being built. Offshore exploration has taken the largest share of E&P capex, which is expected to rise until the end of the decade. In Indonesia, five strategic national projects are slated for accelerated exploration, including the US$21 billion Masela project, which broke ground in July 2026.
There is stronger demand for dynamic positioning-enabled PSVs globally, while vessel supply is limited due to a near-decade absence of OSV newbuilding orders since 2015. With 47% of the global fleet over 15 years old, tight supply is expected, pointing to higher charter rates.
Wintermar has embarked on a three-pronged expansion strategy: 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 one second-hand diesel-electric AHTS and one MSV, which are undergoing repair and expected operational by 4Q2026. A new order for an MSV was placed for delivery in 2H2027. Through FOS, Wintermar will have seven FMPVs, two with long-term contracts, and five new CTVs delivered between 1Q2027 and 2Q2027, contracted for five years with options. These investments will be funded via 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 expects the investments to be earnings accretive in 2027, with a jump in revenue and profit as new vessels start operations. For more information, visit www.wintermar.com.
