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, as the company benefited from higher fleet utilization and a greater number of high-tier vessels in operation. 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 prior year, driven by increased deployment of platform supply vessels (PSVs). Overall fleet utilization improved to 62% in 1H2026, up from 56% in 1H2025, although second-quarter utilization dipped slightly as spot contracts continued to dominate the market.
The results come as Wintermar executes an aggressive expansion strategy to capitalize on a favorable offshore oil and gas investment cycle. The company recently completed the acquisition of Fast Offshore Supply Pte Ltd (FOS), which will add a fleet of crew transfer vessels (CTVs) with long-term contracts. Additionally, Wintermar has taken delivery of two second-hand vessels and placed an order for a new multi-role support vessel (MSV), with deliveries expected in 2027. These investments are expected to be earnings accretive but will temporarily raise net gearing and reduce margins in the second half of 2026.
Direct expenses for owned vessels rose 12% to US$21.7 million, primarily due to higher depreciation and crewing costs as more vessels became operational. However, fuel costs fell 40% as charterers absorbed these expenses during operations. Total gross profit jumped 76.9% to US$24.9 million, while operating profit surged 124.6% to US$20.1 million. EBITDA climbed 76.8% to US$28.2 million.
The company's chartering division continued to shrink as management focuses on owned vessels, with revenue falling 40.5% to US$1.6 million. Conversely, other services revenue grew 40.8% to US$3.4 million, driven by fee-based income. Interest expenses declined 6.8%, while interest income rose 25.7%. A forex loss of US$0.4 million was incurred due to Rupiah depreciation.
Industry outlook remains robust, with oil prices expected to stay firm amid ongoing geopolitical tensions and rising global investment in upstream oil and gas. The rapid adoption of AI is boosting energy demand, and offshore exploration is taking the largest share of exploration and production (E&P) capex. In Indonesia, the US$21 billion Masela project broke ground in July 2026, adding to the positive momentum. With 47% of the global OSV fleet over 15 years old and limited newbuildings since 2015, vessel supply is expected to remain tight, supporting higher charter rates.
Wintermar's expansion plan includes purchasing second-hand vessels, building new ones, and integrating FOS's CTVs. In July, the company took delivery of a diesel-electric AHTS and an MSV, both undergoing repair and expected operational by 4Q2026. A new MSV order will be delivered in 2H2027. The FOS acquisition brings seven existing fast crew boats, with two under long-term contracts, and five new CTVs to be delivered in 2027 with five-year contracts. These investments will be funded through internal cash, bank loans, and vessel sales.
Despite near-term margin pressure, management is confident these investments will drive significant revenue and profit growth in 2027. The company also expects to reactivate a second-hand PSV in 4Q2026 and take delivery of a new PSV in 2Q2027.
