Wintermar Offshore Marine Group reported substantial financial improvements for the fiscal year ending December 31, 2025, with operating profit surging 31% year-over-year to US$23.3 million. Core profit attributable to shareholders increased 19.2% to US$18 million, demonstrating the company's successful navigation of a complex offshore support vessel market.
The owned vessel division delivered strong performance despite softer charter rates and lower offshore activity in 2025. Revenue from owned vessels rose 13.8% to US$70.7 million, with gross margins expanding to 41.7% from 36.1% in 2024. This margin improvement resulted from operating a larger number of higher-value vessels, particularly dynamic positioning (DP) equipped vessels, which compensated for lower utilization rates caused by geopolitical concerns and shorter-term drilling projects.
Strategic shifts in business operations contributed to the changing profit composition. The chartering division's gross profit declined to US$0.5 million from US$1.4 million in 2024, partly due to the company's move toward a management fee-based ship management model for better scalability. This transition boosted the other services division, which saw contributions increase 9.3% to US$2.8 million.
Operating expenses reflected the company's growth trajectory. Crewing costs rose 10.5% to US$11.4 million due to more DP vessels in operation and increased overseas contracts. Depreciation increased 10.4% to US$14.8 million from the full-year impact of fleet additions in 2024. Notably, fuel bunker costs decreased significantly by 26% as idle vessels were berthed in Batam using shore power.
The company expanded its fleet during the year, operating seven platform supply vessels (PSVs) by December 2025 compared to five at the end of 2024. One PSV completed reactivation and became operational in the fourth quarter, while another was purchased in late 2025 and is expected to be operational by the second half of 2026.
Indirect expenses increased 10% to US$9.4 million, primarily driven by salary costs rising 11.9% to US$6.5 million as employee strength grew to 252 from 244. This expansion in technical and operations positions prepares the company for fleet scaling. Marketing expenses increased 17.2% due to tender participation costs, while investments in new subsidiaries added to office utility expenses.
Financial performance showed improved operational strength despite higher interest expenses. Interest costs rose 83.5% to US$2.1 million as the company took on more debt to refinance vessels, while interest income doubled to US$1.0 million. Associated companies contributed US$4.1 million, a 71.5% increase from better business conditions. EBITDA increased 21.8% to US$38.4 million, reflecting enhanced operations and cash generation capabilities.
The industry outlook indicates favorable conditions for offshore support vessel operators. Geopolitical risks in 2025 prompted governments worldwide to prioritize energy security over long-term climate goals. Simultaneously, accelerated artificial intelligence adoption expanded data centers, significantly increasing power demand. The International Energy Agency revised electricity demand growth upward to 3.7% in 2026, exceeding the 2.6% average annual growth between 2015 and 2023.
These factors drove increased investment in oil and gas exploration in 2025 compared to 2024, particularly in deepwater drilling. Early 2026 attacks on Iran and subsequent retaliation disrupted Middle Eastern oil and gas supplies, causing price spikes. Prolonged conflict could trigger further exploration investment as energy nationalism becomes more prevalent.
Wintermar's business prospects appear robust, with Indonesia alone hosting four government-identified strategic deepwater drilling projects scheduled for production between 2027 and 2030. Longer-term contracts for these projects are expected to be awarded as activity ramps up in the second half of 2026. The company held US$59.1 million in contracts at the end of December 2025.
Management plans significant expansion, budgeting more than double the US$41.7 million capital expenditure of 2025 for fleet growth in anticipation of increased OSV demand. Stronger cash flow expected in 2026 will support dynamic positioning fleet expansion through direct vessel purchases or corporate acquisitions, funded by internal cash flow and bank loans. For more information, please visit https://www.wintermar.com.
