Wintermar Offshore Reports Strong 1H2026 Results Amid Rising Global Offshore Demand

Wintermar Offshore (WINS:JK) has reported a 24.4% year-over-year increase in attributable net profit to US$8.4 million for the first half of 2026, driven by a 41.4% surge in owned vessel revenue to US$45 million and improved fleet utilization at 62%, up from 56% in the same period last year. The company's focus on high-tier vessels and strategic expansion is paying off as the global offshore oil and gas industry experiences a resurgence.

The owned vessel division saw margins widen to 51.7% compared to 39.1% in 1H2025, as more platform supply vessels (PSVs) were deployed. However, fleet utilization in the second quarter was slightly lower than the first, reflecting a market still dominated by spot contracts. The completion of the acquisition of Fast Offshore Supply Pte Ltd (FOS) at the end of June will see earnings from FOS consolidated in the second half of 2026, adding a fleet of new crew transfer vessels (CTVs) with long-term contracts.

Despite a delay in tendering for some longer-term domestic OSV contracts and the impact of the Middle East conflict on planned deployments, Wintermar's overall gross profit jumped 76.9% to US$24.9 million. Operating profit rose by 124.6% to US$20.1 million, while EBITDA climbed 76.8% to US$28.2 million. Direct expenses for owned vessels rose 12% due to higher depreciation and crewing costs, but fuel costs fell 40% as charterers covered fuel expenses when vessels were operational.

The chartering division continued its decline, with revenue falling 40.5% to US$1.6 million, as management shifts focus to higher-margin owned vessels. Meanwhile, revenue from other services grew 40.8% to US$3.4 million, driven by fee-based income.

The industry outlook remains robust, with the Iran conflict keeping oil prices firm and global investment in upstream oil and gas rising. The rapid adoption of AI is increasing energy demand, and offshore exploration is taking the largest share of E&P capex, which is expected to grow through the end of the decade. In Indonesia, five strategic national projects, including the US$21 billion Masela project, are slated for accelerated exploration.

Wintermar is capitalizing on this momentum with a three-pronged expansion strategy: purchasing second-hand vessels, building new ones, and acquiring FOS to gain control of a fleet of new CTVs with long-term contracts. In July, the company took delivery of two second-hand vessels undergoing repairs and expected to be operational by 4Q2026. A new order for an MSV will be delivered in 2H2027, and through FOS, Wintermar will have seven existing FMPVs (two with long-term contracts) and five additional new CTVs delivered between 1Q2027 and 2Q2027, all contracted for five years.

These investments will raise net gearing and add to expenses in the second half of 2026, potentially reducing net margins in the near term. However, management is confident these investments will be earnings accretive in 2027, with a jump in revenue and profit when the new vessels start operations. The company also expects to reactivate a second-hand PSV in 4Q2026 and take delivery of a new PSV in 2Q2027.

With a fleet of more than 48 offshore support vessels, Wintermar is well-positioned to benefit from the tight supply of OSVs globally, as 47% of the global fleet is over 15 years old and newbuild orders have been absent for nearly a decade. This supply-demand imbalance points to higher charter rates, making Wintermar's expansion timely.

For more information about Wintermar Offshore Marine Group, visit their website.