Wintermar Offshore (WINS:JK) has reported a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, as the company benefited from higher fleet utilization and the deployment of additional high-tier vessels. The company's owned vessel division saw revenue grow by 41.4% to US$45 million, with margins widening to 51.7% from 39.1% in the prior year, as more platform supply vessels (PSVs) were put into operation.
Despite the strong first-half performance, fleet utilization in the second quarter was slightly lower than the first, reflecting the market's continued reliance on spot contracts. The company noted a delay in the tendering timeline for some longer-term domestic OSV contracts, which prolongs volatility in utilization as a large portion of the fleet remains on short-term agreements. Additionally, the ongoing conflict in the Middle East has affected some vessels planned for deployment in that region.
The acquisition of Fast Offshore Supply (FOS) was completed at the end of June, and its earnings will be consolidated in the second half of 2026. Wintermar's expansion strategy is three-pronged: 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 anchor handling tug supply (AHTS) and one second-hand diesel-electric multi-role support vessel (MSV), which are undergoing repair and modification and are expected to be operational by the fourth quarter of 2026. A new order for one MSV is set for delivery in the second half of 2027.
The company's chartering division saw revenue decline by 40.5% to US$1.6 million, as management focuses on maximizing owned vessel utilization, which offers higher margins. Conversely, other services revenue rose by 40.8% to US$3.4 million, driven by fee-based income. Direct expenses for owned vessels increased by 12% to US$21.7 million, largely due to higher depreciation and crewing costs, while fuel costs decreased by 40% as charterers bear those expenses when vessels are operational.
Total gross profit jumped by 76.9% to US$24.9 million, and operating profit rose by 124.6% to US$20.1 million. EBITDA increased by 76.8% to US$28.2 million. Interest expenses fell slightly, while interest income rose. Associated companies recorded a loss of US$1.6 million due to lower utilization during repairs, and a forex loss of US$0.4 million was incurred on Rupiah-denominated cash due to currency depreciation.
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, with offshore exploration taking the largest share of E&P capex. In Indonesia, the US$21 billion Masela project broke ground in July 2026, and five strategic national projects are slated for accelerated exploration. The global OSV fleet is aging, with 47% over 15 years old, and newbuilding orders have been scarce since 2015, pointing to tight supply and higher charter rates.
Wintermar's expansion plan will raise net gearing and add expenses in the second half of 2026 before new vessels start work in 2027. Although this is expected to reduce net margins in the near term, management is confident these investments will be earnings accretive in 2027, with a jump in revenue and profit when the new vessels begin operations. The company also expects to reactivate one second-hand PSV purchased last year in the fourth quarter of 2026 and take delivery of a new PSV in the second quarter of 2027.
