Wintermar Offshore (WINS:JK) reported a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, driven by a higher number of high-tier vessels in operation and improved fleet utilization. The company's owned vessel fleet utilization rose to 62% in 1H2026, up from 56% in the same period last year, as more vessels were deployed.
Revenue from the owned vessel division surged 41.4% year-on-year to US$45 million, with margins widening to 51.7% from 39.1% in 1H2025. This improvement was largely 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, albeit at higher charter rates.
Wintermar completed the acquisition of Fast Offshore Supply (FOS) at the end of June, with earnings from FOS to be consolidated in the second half of 2026. The company noted a delay in the tendering timeline for some longer-term domestic OSV contracts, which prolongs volatility in fleet utilization as a large proportion of the fleet remains 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 continued to decline, falling 40.5% year-on-year to US$1.6 million, as management shifted focus toward 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 rose 12% year-on-year to US$21.7 million, primarily due to higher depreciation and crewing costs associated with the additional vessels. Total gross profit jumped 76.9% to US$24.9 million, while operating profit surged 124.6% to US$20.1 million.
Net attributable profit rose despite a loss from associated companies of US$1.6 million due to lower utilization during repairs and maintenance, and a forex loss of US$0.4 million on Rupiah-denominated cash. EBITDA climbed 76.8% to US$28.2 million.
The industry outlook remains strong, with the Iran conflict continuing into 2H2026, disrupting maritime traffic through the Strait of Hormuz and keeping oil prices firm. Global investment in upstream oil and gas is rising, and the rapid adoption of AI is expected to increase energy demand. Offshore exploration and production capital expenditure have doubled since the trough of 2020, and in Indonesia, the US$21 billion Masela project broke ground in July 2026.
Wintermar's expansion strategy includes the purchase of second-hand vessels, newbuilds, and the acquisition of FOS to gain control of a fleet of Crew Transfer Vessels (CTVs) with long-term contracts. In July, the company took delivery of one second-hand diesel-electric AHTS and one MSV, expected to be operational by 4Q2026. It also placed an order for one new MSV for delivery in 2H2027. Through FOS, it will have 7 FMPVs, with 2 under long-term contracts, and 5 new CTVs delivered between 1Q2027 and 2Q2027, already contracted for 5 years.
These investments will be funded through internal cash, bank loans, and vessel sales, and are expected to 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 as new vessels begin operations.
