Wintermar Offshore (WINS:JK) has announced its financial results for the first half of 2026, reporting a 24.4% year-on-year (YOY) increase in attributable net profit to US$8.4 million, compared to US$6.7 million in the same period last year. The growth was driven by a 41.4% YOY rise in owned vessel revenue to US$45 million, as more vessels became operational and fleet utilization improved to 62% from 56% in 1H2025. The owned vessel division saw margins widen significantly to 51.7% from 39.1%, attributed to the deployment of more Platform Supply Vessels (PSVs).
Despite the positive results, the company noted that fleet utilization in the second quarter was slightly lower than the first, as the market remains dominated by spot contracts, albeit at higher charter rates. The completion of the acquisition of Fast Offshore Supply Pte Ltd (FOS) at the end of June means its earnings will only be consolidated in the second half of 2026. Additionally, delays in tendering for some longer-term domestic OSV contracts and the ongoing conflict in the Middle East have impacted vessel deployment plans.
The chartering division continued its decline, with revenue falling 40.5% YOY to US$1.6 million, as management focuses on maximizing owned vessel utilization, which offers higher margins. Conversely, revenue from other services rose 40.8% to US$3.4 million, driven by increased fee-based income. Total gross profit jumped 76.9% YOY to US$24.9 million, with owned vessels contributing US$23.3 million. Operating profit surged 124.6% to US$20.1 million, while EBITDA climbed 76.8% to US$28.2 million.
The company's expansion strategy is three-pronged: purchasing second-hand vessels, building new vessels, and acquiring FOS to gain control of a fleet of new Crew Transfer Vessels (CTVs) with long-term contracts. In July, Wintermar took delivery of a second-hand diesel-electric AHTS and a second-hand DE Multi-role Support Vessel (MSV), which are undergoing repairs and expected to be operational by 4Q2026. A new MSV has been ordered for delivery in 2H2027. The FOS acquisition adds seven existing Fast Crew and Multipurpose Vessels (FMPVs), with two having long-term contracts, and five new CTVs to be delivered between 1Q2027 and 2Q2027, contracted for five years with options. These investments will be funded through internal cash, bank loans, and vessel sales.
Industry outlook remains strong, with the Iran conflict continuing to disrupt maritime traffic through the Strait of Hormuz, keeping oil prices firm. Global upstream oil and gas investment is rising, with offshore exploration taking the largest share of E&P capex. The rapid adoption of AI is expected to boost energy demand further with more data centres being built. In Indonesia, the US$21 billion Masela project broke ground in July 2026, adding to the positive outlook. With 47% of the global OSV fleet over 15 years old and a lack of newbuildings since 2015, supply is expected to remain tight, supporting higher charter rates.
Wintermar's expansion will raise net gearing and add expenses in the second half of 2026, potentially reducing net margins in the near term. However, the company expects these investments to be earnings accretive in 2027, with a significant jump in revenue and profit as new vessels commence operations. The company also has a second-hand PSV purchased last year expected to be reactivated in 4Q2026 and a new built PSV for delivery in 2Q2027.
