Wintermar Offshore Marine Group (WINS.JK) announced its financial results for the year ended 31 December 2025, reporting a 31% year-on-year increase in operating profit to US$23.3 million, reflecting margin expansion through a better fleet mix. Core profit attributable to shareholders rose 19.2% to US$18 million, compared to US$15.1 million in FY2024. The company's owned vessel division saw revenue increase by 13.8% to US$70.7 million, with gross margins widening to 41.7% from 36.1% in FY2024, despite lower utilization due to geopolitical concerns and early-stage drilling projects. This was offset by higher revenue from more Dynamic Positioning (DP) equipped vessels.
The chartering division's gross profit dropped to US$0.5 million from US$1.4 million, partly due to a strategic shift to a management fee-based ship management model. Other services division contribution increased by 9.3% to US$2.8 million. Direct expenses rose, with crewing costs up 10.5% to US$11.4 million and depreciation up 10.4% to US$14.8 million, reflecting full-year impact of fleet additions. Fuel bunker costs fell 26% as idle vessels were berthed on shore power. Total gross profit rose 24.1% to US$32.7 million.
Indirect expenses increased 10% to US$9.4 million, driven by salary costs for building key technical and operations positions. Marketing expenses rose 17.2% due to fees and bid bond expenses. Operating profit jumped to US$23.3 million from US$17.8 million. Interest expenses rose 83.5% to US$2.1 million due to higher debt for vessel refinancing, while interest income doubled to US$1.0 million. The company remains in a strong net cash position. Associated companies contributed US$4.1 million, up 71.5%. Gain on sale of vessels was US$3.5 million, lower than the US$16.1 million windfall in FY2024. Total other income was US$7.4 million versus US$19 million. EBITDA increased 21.8% to US$38.4 million. Core net profit attributable to shareholders was US$18 million, up 19.2%. Earnings per share were Rp75.80 against Rp78.35 in FY2024.
Industry outlook: Heightened geopolitical risks in 2025 led governments to prioritize energy security, while AI adoption accelerated data center expansion, boosting electricity demand. The IEA revised 2026 electricity demand growth to 3.7%, above the 2015-2023 average of 2.6%. This drove upward revisions in oil and gas exploration investment, particularly deepwater drilling, confirming a positive outlook for OSV demand, especially DP-equipped vessels. Early 2026 attacks on Iran disrupted Middle East oil supplies, spiking oil prices. If the conflict escalates, it could trigger more exploration investment as energy nationalism rises.
Business prospects: The company's fleet investment improved composition and margins. Indonesia has four deepwater drilling projects slated for production between 2027-2030, with longer-term contracts expected as projects ramp up in H2 2026. With stronger cash flow, management plans to expand the DP fleet through direct purchases or acquisitions. Total capex in 2025 was US$41.7 million, and FY2026 budget is more than double that amount, funded by internal cash flow and bank loans. Total contracts on hand at end-December 2025 amount to US$59.1 million. For more information, visit www.wintermar.com.
