Wintermar Offshore Marine (WINS:JK) has announced results for 1H2022. Total revenue was up 25%YOY to US$25 million, helped by higher chartered vessels revenue. Revenues rebounded in 2Q2022 by 39%QOQ as several vessels commenced operations after delays in 1Q2022. All Divisions turned in positive gross profit for the 2nd quarter reflecting higher demand for OSVs.
Owned Vessel Division
After recording a loss for 1Q2022, gross profit for 2Q2022 rebounded to US$2.1 million on revenues of US$7.9 million, +19%QOQ. This reflects a higher utilization rate for Owned Vessels in 2Q2022 of 70% compared to only 61% in 1Q2022. Gross Profit from Owned Vessels turned around to US$0.8 million in 2Q2022 compared to a loss of US$0.58 million in 1Q2022.
The three high tier vessels purchased recently were still awaiting the arrival of dynamic positioning equipment for an upgrade of their DP capability before conducting their Sea Trial and to be ready to sail.
On a YOY basis, Owned Vessel Direct expenses were 2% higher YOY, largely from higher fuel expenses incurred in a one-off demobilization of a vessel returning from work in Africa, offset by an 8% lower depreciation charge due to vessel disposal YOY. Revenue from Owned Vessels declined by 13% YOY due mainly to disposal of 7 Vessels in 2021. Gross Profit from Owned Vessels for 1H2022 amounted to US0.2 million compared to a US$2.7 million in 1H2021.
Chartering and Other Services
For 1H2022, Chartering Revenue jumped 205% YOY to US$7.96 million compared to US$2.6 million in 1H2021, reflecting some contracts in Brunei. For 1H2022, Chartering Division contributed Gross Profit of US$0.9 million (+150% YOY), while other services gross profit was also up significantly at US$1.15 million (+417% YOY).
Total Gross Profit for 1H2022 was US$2.27 million which was 31% lower YOY as compared to 1H2021.
Indirect Expenses and Operating Profit
Total indirect expenses for 1H2022 were US$3.15 million, up 20% as compared to 1H2021 with salary reflecting the highest increase of 31%.
At the Operating level, the Company recorded a loss of US$0.88 million for 1H2022, compared to US$0.7 million profit in 1H2021.
Other Income, Expenses and Net Attributable profit
For 1H2022, Interest Expenses fell 39% YOY to US$0.74 million as the Group continues to reduce outstanding bank debt. At 30 June 2022, the Net Debt to Equity (Net Gearing) amounted to 13%. Share of Equity in Earnings of Associates totalled US$0.38 million.
The Net Loss Attributable to Shareholders for 1H2022 was US$1 million compared to a loss of US$0.5 million for 1H2021.
EBITDA for 1H2022 was 29% lower YOY at US$5.3 million.
Outlook for Oil and Gas exploration
With Brent oil prices staying high during the 2Q2022, activity in upstream oil continued to be firm. The International Energy Agency (IEA) in its June Oil Market Report projected that global oil demand will reach 103m b/d in 2023, while total global oil output is still constrained due to sanctions against Russia. Westwood Global Energy research is projecting a strong industry upcycle for offshore investments through 2026 if oil prices stay high.
Stronger demand for OSVs have been seen worldwide, as utilization rates are higher across all geographic areas. However, although charter rates were higher in the North Sea and Middle East, they have not risen much yet in Asia Pacific.
Outlook
The Company is looking to better utilization in 2H2022 when the recently acquired PSVs will be ready for operation. There have been more requests for quotation and several new tenders announced in Indonesia and the Asian region. Charter rates for OSVs in Asia are expected to rise after utilization rates pick up further next year.
Contracts on hand as at end June 2022 totalled US$62 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