Jul 31, 2023 | Business
PT Wintermar Offshore Marine Tbk (WINS:JK) has announced results for 1H2023. Wintermar’s Gross Profit from Owned Vessels jumps to US$3.1 million for 1H2023 from US$0.2 million in 1H2022 on the back of 32.6%YOY increase in Owned Vessels revenue to US$ 19.2 million.
Total Gross Profit increased 140%YOY to US$5.4 million for 1H2023, while total revenues were 24.4% higher at US$31 million, largely driven by higher charter rates and additional fleet commencing operations.
Owned Vessel Division
In the first half of 2023, Owned Vessel gross profit experienced an exceptional increase to US$3.1 million, generated from revenues of US$19.2 million. This was achieved as a result of securing higher charter rates, in spite of a decrease in fleet utilization from 66% in 1H2022 to 61% in 1H2023. The lower utilization was due to a transitionary period where some vessels came off longer term contracts and were undergoing necessary maintenance before being deployed to new contracts.
As a result, maintenance costs increased by 80.0% YoY, with the majority of the increase focused on the higher value vessels. Bunker costs also rose by 23% to US$1.3 million due to a higher number of vessels being out of contract. In expectation of higher rates in the second half of the year, management was more selective in tendering for work during the period, which contributed to the lower utilization.
The Company currently owns a fleet of 42 vessels, including 9 additional higher value vessels that were acquired since 2021, including 1 mid-tier vessel acquired in 2Q2023. Of the 9 additional vessels, 6 were operational in 2Q2023, 2 more commenced work in June and July, with 1 expected to be deployed in the second semester of 2023, leaving only 1 left in the process of reactivation.
Chartering and Other Services
For the first half of 2023, Chartering Revenue was nearly flat at US$8.1million compared to US$7.9million in 1H2022. Due to lower margins the gross profit from Chartering Division fell by 26.5%YOY to US$0.7million. This was also due to one of the chartered vessels being acquired in 2Q2023 as the Company had secured a long-term contract for it. Other Services Revenue and Gross Profit increased significantly to US$3.8million (+47.2% YoY) and US$ 1.6 million (+40.7% YoY), respectively.
Indirect Expenses and Operating Profit
Management continued to exercise tight cost control in the first half of 2023. There was a one-off reversal to employee pension liabilities from the change in the omnibus law which resulted in a 4.5% YOY decrease in indirect expenses to US$3million.
Due to the much-improved industry conditions and controlled expenses, the Company booked an operating profit of US$2.4million for 1H2023 compared to a loss of US$0.9million in 1H2022.
Other Income, Expenses and Net Attributable Profit
Interest expenses fell by 26.1% YOY to US$0.5 million, as the group continued to reduce its outstanding bank debt. This resulted in a net debt-to-equity ratio of just 6.5% at the end of the first half of 2023.
The strong performance of the business resulted in a net income attributable to shareholders of US$1.1million for the first half of 2023, compared to a loss of US$1.0million in the same period of 2022.
The group’s EBITDA also jumped by 64% YOY to US$8.7 million.
Outlook for O&G and the OSV Industry
The International Energy Agency (IEA) released its May Oil Market Report, projecting global oil demand to reach 103m b/d in 2024 from the previous estimate below 103m b/d provided in July 2022. This represents an upward revision from the red to the blue demand curve in Figure 1. Oil supply as we know has been constrained by several years of underinvestment due to lackluster oil prices since 2015.
The more positive oil demand forecast combined with global concerns over energy security triggered by embargos on Russian oil has caused a strong upturn in oil and gas investment. Rystad projects a recovery in oil and gas investments to reach US$ 600 billion by 2025. For South East Asia alone, there are US$ 135 billion worth of investments which have been approved, but the biggest jump in investment is in the offshore deepwater segment, as can be seen in the dark blue part of the bar chart in Figure 2 below. Deepwater investments typically require more technologically advanced OSVs with Dynamic Positioning systems of DP2 certification, like Platform Supply Vessels (PSV) and larger Anchor Handling Tug Supply (AHTS).
The supply of OSVs in SE Asia has been getting tighter in the past six months as the commencement of drilling projects in the Middle East, Africa and Latin America has attracted available and operationally ready OSVs to those geographical locations. Charter rates in SE Asia have lagged those markets but have started to improve in 2Q2023. With the current rise in approved projects in the coming years, we expect even tighter conditions in the OSV market in Asia for the next few years.
Company Business Outlook
Wintermar expects a stronger performance throughout the remainder of the year, driven by the successful award of several contracts for high-tier vessels. These contracts feature charter rates that are much higher than previous contracted rates, with commencements expected in Q3 and Q4 of 2023. This positive development aligns with the overall improvement in OSV market conditions followed by the rising global OSV utilization and increasing charter rates.
As at end of June 2023, the Company’s Contracts on hand amounted to US$ 79 million.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel +62-21 530 5201 Ext 401
Email: investor_relations@wintermar.com
Topic: Press release summary
Jun 18, 2023 | Business
PT Wintermar Offshore Marine Tbk (WINS:JK) invested US$3.15 million out of capex plan of US$18 million in 2023, and expects higher demand for OSVs driven by a jump in approved deepwater oil and gas investments and tight OSV supply. During the Public Expose on 16 June 2023, PT Wintermar Offshore Marine Tbk unveiled its strategic plans to enhance fleet composition and profitability, positioning itself to capitalize on the anticipated upturn in the oil and gas industry.
The Company expressed a bullish outlook on O&G as a jump in approved investments in deepwater projects is expected to raise the demand for high-value Offshore Supply Vessels (OSVs) in the coming years. Wintermar aims to ride on the upturn, having added high tier fleet capacity, and stands to benefit from rising charter rates.
In 2021, the Company successfully acquired 2 vessels, followed by an additional 6 vessels in 2022, and acquired 1 more vessel in 2023. Out of the total of 9 vessels, 5 are currently operational. Meanwhile, out of the remaining 4 vessels, it is expected that 2 vessels will start operating in June 2023, 1 vessel to be ready to work in July, leaving only 1 vessel still in the process of reactivation.
Fleet utilization in the first quarter of 2023 was 67%, an increase from 61% in the first quarter of 2022, but still lower compared to the high utilization rate of 82% in the fourth quarter of 2022. The decrease in utilization is due to several vessels undergoing a transition after the completion of contracts. Some vessels were undergoing maintenance for preparation of long term contract engagements.
Management revealed that average vessel charter rates so far in 2023 are 35% higher than the average rental rates in 2022 for high tier vessels and 8% for mid tier vessels.
With the improvement in the oil and gas and OSV sector, the Company is expecting an increase in charter rates and utilization in the second half of 2023. This reflects the success in securing several longer-term contracts that will commence in the third and fourth quarters of 2023.
Finance Director Janto Lili reported that the Company succeeded in maintaining strong financial performance and solid debt management. The Company’s Gross Profit for 1Q2023 reached US$1.6 million, reflecting a significant improvement compared to the previous year. With a low net gearing of 10.0%, Wintermar is well-positioned to fund its growth initiatives and market opportunities.
Managing Director of Wintermar, Sugiman Layanto expressed confidence in the coming years, as Wintermar anticipates a strong increase in demand for offshore support vessels driven by increasing investment in new projects in the deepwater oil and gas sector. This positive outlook comes at a time when the supply for OSVs remains tight due to the industry downturn over the past years.
For the future, Wintermar will continue to focus on selective acquisition of higher value vessels to improve the profitability of the overall fleet.
As at end of April 2023, the Company’s Contracts on hand amounted to US$66 million.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel (62-21) 530 5201 Ext 401
Email: investor_relations@wintermar.com
Topic: Shareholders Meeting
May 2, 2023 | Business
PT Wintermar Offshore Marine Tbk (WINS:JK) has announced results for 1Q2023. Operating Profit rebound to US$1.6 million from a loss of US$1.4 million in 1Q2022 after strong increase in Revenues. Stronger charter rates contributed to the 51%YOY increase in total revenue to US$15.9 million and gross profit of US$3.0 million for 1Q2023.
Owned Vessel Division
During the first quarter of 2023, charter rates were higher, boosting Owned Vessel revenue by 46%YOY to US$9.7 million, and generating a turnaround in the division with a positive gross profit of US$1.7 million for 1Q2023 compared to a loss of US$0.6 million for 1Q2022. Quarterly utilization for 1Q2023 was 67%, higher than 61% in 1Q2022, but lower than the high utilization of 82% in 4Q2022, as several longer-term contracts completed in 1Q2023 and vessels underwent interim maintenance while being prepared for new contracts.
Direct Expenses were 10.6% higher, mainly due to higher maintenance (+154.4%YOY) and operations (+30.6% YOY) costs for parts and consumables. Depreciation was slightly lower at US$3 million (-2.5%YOY) as some of the additional vessels were not yet activated. Crewing costs rose by 2.6%YOY to US$2.1 million for 1Q2023.
Chartering and Other Services
Gross Profit from the Chartering Division rose by 16.6% YOY to US$0.4 million while Gross Profit from Other Services rose by 124.9% to US$0.9 million as demand for ancillary services also improved.
Total Gross Profit jumped to US$3.0 million for 1Q2023, compared to only US$0.2 million in 1Q2022, reflecting more robust conditions in the industry.
Indirect Expenses and Operating Profit
During 1Q2023, total Indirect Expenses fell by 9.4%YOY to US$1.4 million. Staff salaries increased by 5.1%YOY due to new hires during 2022 after a hiring freeze ended during the COVID-19 pandemic. However, this was offset by lower employee benefit expenses as actuarial liabilities were adjusted to comply with the new Omnibus law. Office utilities rose 39%YOY to US$0.1 million as most employees returned to work in the office compared to 1Q2022 where employees were still working from home.
Operating Profit saw a convincing turnaround for 1Q2023 at US$1.6 million, compared to a loss of US$1.4 million in 1Q2022.
Other Income, Expenses and Net Attributable Profit
The better operating conditions has contributed to higher cash flow as EBITDA saw a sharp increase to US$4.6 million in 1Q2023 from US$1.7 million in 1Q2022.
As the Company’s borrowings fell to US$16.1 million by 31 March 2023 compared to US$24.3 million at end March 2022, net interest expenses continued to fall by 28.6%YOY to US$0.26 million.
Associate companies recorded a loss of US$ 0.4 million, from the cost of preparing an additional vessel for operations. For 1Q2023, Total Net Income before tax and minorities stood at US$0.85 million compared to a loss of US$2.0 million for 1Q2022.
Net Attributable Profit to Parent Entity for 1Q2023 amounted to US$0.18 million compared to a loss of US$1.8 million for the same period in 2022.
Business Outlook
OPEC+ members announced a voluntary production cut beginning from May 2023 to the end of the year, indicating that oil prices should remain firm. This confirms the positive outlook for oil and gas exploration as more new projects are being announced.
There has been an increase in optimism in upstream activities in Asia where more drilling projects are being approved. During the first quarter there were several new requests for proposals in the region, including in Brunei, Thailand, Malaysia as well as Indonesia. Charter rates are rising as demand for OSVs has picked up while supply has been stagnant.
Rystad Energy has estimated that South East Asian upstream investments will grow by 10% in 2023 and 15% in 2024, largely in offshore fields. This is positive for our fleet expansion strategy.
Fleet utilization fell in 1Q2023 because some vessels have come off longer term contracts when charter rates were lower. The Company will be looking to deploy these in contracts with higher charter rates in the coming months.
Contracts on hand as at end March 2023 amounted to US$72 million.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel (62-21) 530 5201 Ext 401
Email: investor_relations@wintermar.com
Topic: Press release summary
Dec 6, 2022 | Business
On 5th December 2022, Wintermar Group (WINS) fully repaid the US$45 million loan facility by IFC signed in December 2011. The IFC loan enabled Wintermar to transform the fleet into higher valued vessels through the purchase of 8 OSVs. Although the loan maturity had been extended to 2025, through better cash management the Company has been able to fully repay the loan early on December 2022.
Sugiman Layanto, Managing Director of WINS said, “Wintermar values IFC as a partner that has played an important role in the growth of Wintermar. Our relationship with IFC facilitated the Company’s growth to become a recognised international shipowner and operator in the Offshore industry. With IFC’s support, Wintermar has continued to develop and reaffirm its best practices in Environmental, Social as well as Corporate Governance standards. We are thankful that we have been able to complete this early repayment of the loan ahead of the repayment schedule. We look forward to continuing our relationship.”
Azam Khan, IFC Country Manager for Indonesia and Timor-Leste said, “We are very pleased with IFC’s long term partnership with Wintermar. It demonstrates IFC’s commitment and continuous support to local clients even during challenging times. We look forward to continuing this relationship and supporting the company’s new initiatives such as offshore wind and other renewable energy endeavors.”
Wintermar has in recent months embarked on a fleet expansion program, with total acquisition of 2 PSVs in 2021 and 1 PSV and 5 AHTS in 2022 through internally generated cash and term loans of US$14 million. Net gearing after this repayment is still low at 8.9%, providing room for further growth in the coming years.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel (62-21) 530 5201 Ext 401
Email: investor_relations@wintermar.com
Topic: Press release summary
Oct 28, 2022 | Business
Wintermar Offshore Marine (WINS:JK) has announced results for 9M2022. Total revenue for 9M2022 jumps by 38%YOY to US$41.6 million, while gross profit grew 29%YOY to US$5.3 million. Improvement in Owned Vessel revenues and strong contribution from our Chartering Division produced a stronger performance in 3Q2022.
Owned Vessel Division
During 3Q2022, several mid and high tier vessels commenced operations for projects in Indonesia and Brunei. This contributed to a rise in fleet utilization in 3Q2022 to 76% compared to 70% for 2Q2022 and only 61% in 1Q2022. Owned vessel revenue for 3Q2022 grew by 24.3%QOQ, while direct expenses only rose by 13.3%QOQ, leading to a higher gross margin of 18.1% in 3Q2022 compared to 10.1% in 2Q2022. This division recorded gross profit of US$1.77 million for 3Q2022 which was 122.4% higher QOQ as compared to 2Q2022.
For 9M2022, total Owned Vessel Direct expenses rise by 3% against a 1% fall in revenue, leading to a 29%YOY decline in gross profit to US$2 million compared to 9M2021, mainly from the poor conditions in 1Q2022 and higher fuel costs arising from the demobilization of a vessel returning from work in Africa.
Chartering and Other Services
The Chartering Division continued to provide a strong contribution to gross profit of US$1.5 million for 9M2022, which more than doubled, rising 129%YOY as compared to US$0.66 million in 9M2021. As business activity picked up, revenues from Other Services also jumped to US$4.4 million for 9M2022, +176%YOY from US$1.6 million in 9M2021, contributing US$1.8 million to gross profit for 9M2022.
The increase in fee-based incomes from Chartering and Other Services reflects the management strategy to leverage on the ship management strength of the Company and reduce reliance on capital intensive sources of income.
Total Gross Profit for 9M2022 was US$5.3 million, a 29%YOY increase from 9M2021.
Indirect Expenses and Operating Profit
Indirect Expenses for 9M2022 were 19%YOY higher at US$4.7 million. This was primarily due to higher salary expenses from the lifting of a hiring freeze over the past two years during the pandemic and the reinstatement of salaries for directors and senior management who had voluntary salary cuts from the past two years.
Operating Profit for 9M2022 was 290%YOY higher at US$0.6 million, reflecting the recovery of the underlying business.
Other Income, Expenses and Net Attributable profit
As total loans continued to be paid down, interest expenses fell by 36%YOY to US$1.1 million, while equity in net earnings of associates doubled to US$0.5 million for the 9M2022 period.
At the attributable level, the Company recorded a net loss attributable to shareholders of US$2.1 million for 9M2022 compared to a loss of US$0.1 million in 9M2021. This resulted from the sale of vessel during the quarter resulting in a loss on sale of fixed asset of US$2.6 million.
EBITDA for 9M2022 was US$9.8million, -4%YOY as compared to 9M2021.
Outlook for Oil and Gas Exploration
The third quarter has seen a marked increase in oil and gas activity globally. The rising tensions between Ukraine and Russia have heightened the risks of disruption to energy supply, and energy security has risen in priority as a topic of concern for most countries.
In Indonesia, several projects commenced in Sumatra, the Natuna sea, Makassar Straits and Papua. SKK Migas revealed that out of their plan for 42 exploration wells and 790 development wells to be drilled in 2022, only 43% was realized by June 2022. The higher oil price seems to be creating some urgency to catch up with the plan. Globally, the Middle East and Africa have been the most active in contracting for offshore rigs. There has been an increase in demand for larger numbers of high tier OSVs like PSVs and AHTS, as larger drilling campaigns are being planned. In the Middle East, there seems to be a structural shift from onshore to offshore production as new reserves are sought.
Business Outlook
As demand for Offshore Support Vessels (OSVs) has risen steadily while operationally ready OSVs worldwide are not easily available, the management is optimistic that charter rates will continue to rise through 2023. In 3Q2022 contracts on hand have risen as a result of new contracts secured in Indonesia, Brunei and Thailand. By 4Q2022, two more of the recently purchased vessels are expected to be ready for work, while the remaining two PSVs are still undergoing refitting and reactivation until early 2023. As the net gearing is now below 11%, management will seek funding to continue purchasing assets to ride the upturn in the cycle.
Contracts on hand as at end September 2022 totaled US$65.9 million.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
For further information, please contact:
Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel (62-21) 530 5201 Ext 401
Email: investor_relations@wintermar.com
Topic: Earnings
