Wintermar Offshore (WINS:JK) has announced a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, buoyed by better fleet utilization and the deployment of additional high-tier vessels. The company's owned vessel division saw revenue surge 41.4% to US$45 million, with margins widening to 51.7% from 39.1% in the same period last year, as more platform supply vessels (PSVs) were operational. Fleet utilization improved to 62% from 56% in 1H2025, though second-quarter utilization dipped slightly due to a market still dominated by spot contracts, albeit at higher charter rates.
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. However, delays in tendering for longer-term domestic OSV contracts have prolonged volatility in fleet utilization, as a large portion of the fleet remains on short-term agreements. Additionally, the Middle East conflict has affected 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 focuses on maximizing owned vessel utilization, which offers higher margins. Conversely, other services revenue 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 from additional vessels and certified crew for dynamic positioning and foreign operations. Fuel costs dropped 40% as charterers bore fuel expenses during operations.
Gross profit jumped 76.9% to US$24.9 million, with the owned vessels division contributing US$23.3 million. Indirect expenses fell 6.2%, leading to an operating profit surge of 124.6% to US$20.1 million. Interest expenses decreased slightly, while interest income rose 25.7%. Associated companies recorded a loss of US$1.6 million due to lower utilization during repairs and maintenance. A forex loss of US$0.4 million was incurred on Rupiah-denominated cash due to currency depreciation. EBITDA rose 76.8% to US$28.2 million.
The industry outlook remains positive, with the Iran conflict persisting and disrupting maritime traffic through the Strait of Hormuz, keeping oil prices firm. Global upstream investment is rising, and offshore exploration accounts for the largest share of E&P capex, expected to grow through the decade. The rapid adoption of AI is boosting energy demand, further supporting investment. In Indonesia, the US$21 billion Masela project broke ground in July 2026, part of five strategic national projects slated for accelerated exploration.
Demand for dynamic positioning-enabled PSVs is strong, while vessel supply remains constrained due to a near-decade absence of newbuild orders. With 47% of the global fleet over 15 years old, tight supply points to higher charter rates. To capitalize on this momentum, Wintermar has embarked on an expansion plan involving second-hand vessel purchases, newbuilds, and the acquisition of FOS to gain control of crew transfer vessels with long-term contracts. In July, the company took delivery of a second-hand diesel-electric AHTS and an MSV, expected operational by 4Q2026, and placed an order for a new MSV for 2H2027. FOS brings seven existing FMPVs, with two on long-term contracts, and five new CTVs to be delivered in 2027, contracted for five years.
These investments will increase net gearing and expenses in 2H2026, potentially reducing near-term margins, but are expected to be earnings accretive in 2027. The company also anticipates reactivating a second-hand PSV in 4Q2026 and taking delivery of a new PSV in 2Q2027. Wintermar's strategic positioning and fleet expansion are set to leverage the anticipated OSV shortage, aiming for significant revenue and profit growth in the coming years.
