Wintermar Offshore (WINS:JK) reported a 24.4% year-on-year increase in attributable net profit to US$8.4 million for the first half of 2026, driven by higher 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 expanding to 51.7% from 39.1% in the same period last year, as more Platform Supply Vessels (PSVs) were put into operation.
Despite the strong results, fleet utilization in the second quarter was slightly lower than the first, reflecting a market still dominated by spot contracts. However, charter rates have improved. The completion of the acquisition of Fast Offshore Supply (FOS) at the end of June means its earnings will only be consolidated in the second half, while delays in tendering for longer-term domestic contracts continue to create volatility in utilization. The ongoing Middle East conflict has also disrupted planned deployments in that region.
The chartering division continued to shrink as management focuses on maximizing owned vessel utilization, which offers higher margins. Revenue from chartering fell 40.5% to US$1.6 million, while other services revenue rose 40.8% to US$3.4 million. Gross profit for the company jumped 76.9% to US$24.9 million, with owned vessels contributing US$23.3 million. Operating profit soared 124.6% to US$20.1 million, helped by a 6.2% decline in indirect expenses. Net profit growth was partially offset by a US$1.6 million loss from associated companies and a forex loss on Rupiah holdings.
Looking ahead, Wintermar sees a strong industry outlook. 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 remain firm, and global upstream investment is rising. The rapid adoption of AI is also boosting energy demand, with more data centers being built. Offshore exploration is taking the largest share of E&P capex, which is expected to increase through the decade. In Indonesia, the US$21 billion Masela project broke ground in July 2026, adding to the positive momentum.
Supply constraints are tightening as nearly half of the global OSV fleet is over 15 years old, and newbuild orders have been absent for nearly a decade. This points to higher charter rates and stronger demand for dynamic positioning-enabled PSVs. Wintermar is capitalizing on this with a three-pronged expansion strategy: purchasing second-hand vessels, building new ones, and acquiring FOS to gain a fleet of crew transfer vessels with long-term contracts.
In July, Wintermar took delivery of two second-hand vessels that are undergoing repairs and expected to be operational by 4Q2026. A new MSV is on order for delivery in 2H2027, and through FOS, the company will add seven existing and five new CTVs by 2027, with contracts already secured. These investments will be funded through internal cash, bank loans, and vessel sales, temporarily raising net gearing and expenses in the second half of 2026. While this may reduce near-term margins, management is confident the investments will be earnings accretive in 2027.
The company also has a second-hand PSV to be reactivated in 4Q2026 and a new PSV for 2Q2027. With the industry poised for growth and Wintermar's strategic expansion, the company is positioned to benefit from the anticipated uptick in offshore activity.
