Wintermar Reports Results For The Full Year Ended 31 December 2024
London, March 24, 2025, (Oilandgaspress) ––- Operating Profit jumped by 101.5%YOY to US$17.8 million on the back of a 13.5%YOY increase in Total Revenue to US$82.4million, from higher charter rates and a better fleet mix of DP (Dynamic Positioning) vessels.
Owned Vessel Division
Owned Vessel Revenue rose by 28.9%YOY to US$62.1million for FY2024 from US$48.2million in FY2023. This was driven by a larger number of DP vessels in the fleet which pushed the average charter rates for 2024 up by 26% as compared to the average charter rate in 2023. These factors contributed to a 106.2%YOY jump in Gross Profit from Owned Vessels to US$22.4million for FY2024 with vessel utilization in 2024 at 66%, slightly lower than 68% for 2023.
Owned Vessel gross margin has increased to 36.1% in FY2024 as compared to 22.6% in FY2023, reflecting a strong increase in charter rates as well as a better fleet exposure to the DP segment. Our 5150BHP to 8000BHP AHTS as well as PSVs experienced a higher charter rate boost than the rest of the fleet due to rising demand for deeper water drilling projects, which require DP capability.
Vessel utilization fell in 4Q2024 to 63% compared to 67% in 3Q2024. Some vessels completed spot contracts while the monsoon season in Brunei also impacted utilization. These vessels underwent maintenance and will start operations again in mid 1Q2025. The additional PSV which was delivered in October 2024 did not commence operations until January 2025.
Chartering Division and Other Services
Gross Profit from Chartering rose by 28.7%YOY to US$1.4million, despite slightly lower revenue of US$13.7million, reflecting improved margins. Gross Profit from Other Services recorded a decline of 16.7%YOY to US$2.6million upon the completion of a contract.
Total Revenue for FY2024 rose 13.5% YOY to US$82.4 million with Total Gross Profit of US$26.4 million (+75.5%YOY) for FY2024 as compared to Total Revenue of US$72.6 million and Total Gross Profit of US$15.0 million in FY2023.
Direct Expenses and Gross Profit
Owned Vessel Direct expenses rose by 6.4% YOY to US$39.7million, largely from higher maintenance costs, which rose by US$7.5million (+21.8%YOY), in additional to higher crewing costs of US$10.3million (+10.5%YOY).
The higher maintenance and crewing costs are aligned with operating a fleet of higher value vessels and a larger proportion of operations outside of Indonesia. Depreciation costs rose by 5.4%YOY to US$13.4million as the number of operational vessels increased. Bunker costs rose by 7.2%YOY to US$3.3million due to higher oil prices and a larger number of vessels mobilized in and out of Indonesia.
Indirect Expenses and Operating Profit
Indirect Expenses rose by 38.5%YOY to US$8.6million, with Staff Salary contributing US$1million to the increase, reflecting a focus on strengthening the operations, technical and IT teams to manage a higher value fleet, as well as the payment of employee bonuses in line with the strong operational performance.
As the Company now participates in more international tenders, there has been an increase in marketing expenses by 164.8%YOY to US$0.66million.
Operating margins jumped to 21.6% for FY2024 compared to 12.2% in 2023, as Operating Profit doubled to US$17.8million for FY2024, reflecting the impact of operational gearing on the Company’s profitability as charter rates begin to rise.
Other Income, Expenses and Net Attributable Profit
Interest Expenses and financial charges fell by 4.2%YOY to US$1.2million while interest income rose by 582%YOY to US$0.46million, as the Company continued to accumulate cash flow and pay down debt.
Equity in net earnings of associates jumped to US$2.4million for FY2024 from US$0.55million in FY2023, with strong contribution from associated companies with OSV operations which also benefitted from the strong industry upturn.
The sale of fixed assets contributed a one-off gain of US$16.1million, largely from the sale of an older PSV in the first half of 2024. Due to the strengthening of the A, the Company recorded a FX loss of US$0.47million mainly from Rupiah denominated trade receivables.
Non-controlling interest was significantly higher at US$9.8million compared to a small loss of US$0.04million in FY2023. The largest contributor to this was from the gain on sale of fixed asset as well as the stronger earnings from the PSV business which is 51% controlled by Wintermar.
Net Attributable Profit to shareholders for FY2024 was US$22.5million, a significant jump of 237% compared to US$6.7million in FY2023. Excluding the gain on sale of Vessel, the underlying core profit increased by 126.5%YOY to US$15.1million compared to US$6.6 million in FY2023.
FY2024 EBITDA increased by 44.8% YOY to US$31.5million.
Industry Outlook
The recent months have been characterized by rising global uncertainty arising from dramatic policy changes in the US, the prospect of tariff wars and the fragile ceasefire in Gaza.
These upheavals have not derailed the underlying momentum in the upstream investment cycle, which seems to still be unfolding as major oil companies have started to roll back renewable energy projects in favour of investing in oil and gas. The oil price has corrected from previous highs but is forecasted to stay firm in the next couple of years from OPEC+ intervention.
In Indonesia, the government remains committed to the various major deepwater projects which have received investment approval in the past 12 months. SE Asian charter rates corrected slightly at the end of 2024 after a very sharp spike up in the past 12 months. However, there are several Engineering Procurement (EPCI) projects which require OSV for short-term projects, which accounts for a more volatile utilization of the OSV fleet.
Business Prospects
Despite a slower 4Q2024, we are still optimistic on the outlook for OSVs in Indonesia as there are several approved deepwater drilling projects particularly in the Makassar strait and the Andaman sea which are likely to commence in 2H2025 to 2026. Some EPCI contracts have been awarded and tendering for the marine spread is ongoing for 2H2025 commencement. All this points to continued short term contracts, by virtue of where we are at this early stage of the drilling cycle, and we expect continued volatility in utilization rates while charter rates should remain firm.
Wintermar took delivery of 3 units of newbuilt Heavy Load Barges (HLB) between December 2024 to February 2025. The vessels are in the process of conversion to Indonesian flag and will be ready to work by 2Q2025. In addition, the Company has ordered a newbuilt Platform Supply Vessel for delivery in 2026, which will enhance the DP capability of the fleet and reduce average age of the fleet. These acquisitions have been funded through internal cash flow and will be refinanced upon delivery. In 2H2025, another reactivated PSV is expected to be operational, adding to our capacity for 2025.
Contracts on hand as at end February 2025 amounted to US$66million.
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).
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