Wintermar Offshore (WINS:JK) Reports 1Q2025 Results

Jakarta (ANTARA/ACN Newswire) - Wintermar recorded a 31.4%YOY increase in Gross Profit to US$6.6 million for 1Q2025, with US$4.1 million Operating Profit (+52.5% YOY), driven by Owned Vessels gross margin expansion.

Margin expansion in the Owned Vessel Division continued to boost profitability, despite a slow quarter where Total Revenue fell by 9.2%YOY from US$18.4 million in 1Q2024 to US$16.7 million in 1Q2025. The lower revenue stemmed from a slower than expected start after the monsoon season which primarily affected the Chartering Division.

Owned Vessel Division

The Owned Vessel Division continued to perform well as the high tier vessels and mid-tier DP vessels saw improved utilization. Gross Profit from Owned Vessel jumped by 55.8%YOY to US$6.1 million for 1Q2025 as compared to 1Q2024, generated from revenues of US$14.8 million (+6.1%YOY). With more PSVs working, Owned Vessel gross margin has continued to increase to 41.2% in 1Q2025 from 28.1% in 1Q2024. Average charter rates for 1Q2025 were 31% higher than 1Q2024, due to a larger number of high yielding vessels in the Company’s fleet.

The lower end of the mid-tier segment did not fare as well in 1Q2025, as some mid-tier vessels came off spot contracts. OSV demand was slow during the quarter, with some project delays, even though there were some ongoing tenders. Fleet utilization dropped to 57% in 1Q2025 as compared to 63% in 4Q2024. Two additional HLBs were delivered in February and March 2025 which only commenced operations in April 2025.

Chartering Division and Other Services

A longer than expected hiatus for the monsoon season led to a 70%YOY drop in Chartering Division Revenues to US$0.9 for 1Q2025 compared to 1Q2024. Revenue from Other Services also recorded a decline of 30.5%YOY to US$1.0 million upon the completion of a contract.Direct Expenses and Gross Profit

Owned Vessel Direct Expenses reduced by 13.3%YOY to US$8.7 million from US$10.1 million in 1Q2024. There were savings in maintenance costs (-28.2%YOY), which fell from US$2.4 million in 1Q2024 to US$1.7 million in 1Q2025, due to the absence of some one-off preparation costs in 2024 for international contracts. Owing to the sale of 3 vessels during 2024, Operations cost fell by 31.0%YOY, from US$1.1 million in 1Q2024 to US$0.8 million in 1Q2025 while Crewing expenses also decreased by 7%YOY, from US$2.5 million in 1Q2024 to US$2.4 million. Bunker costs were maintained at US$0.5 million (+1.8%YOY), reflecting a stable oil price and a low number of vessel mobilizations.

As a result of a higher concentration in Dynamic Positioning (DP) vessels which has enjoyed a stronger charter rate increase, the Gross Profit margin has risen from 27.1% in 1Q2024 to 39.3% in 1Q2025, demonstrating the underlying resilience of the fleet despite the near-term delays in project commencements.

Indirect Expenses and Operating Profit

Total Indirect Expense rose by 6.5%YOY to US$2.4 million in 1Q2025 as compared to US$2.3 million in 1Q2024. This increase was primarily driven by the increase in marketing expenses and staff salaries.

With the growing participation in international tenders, Marketing Expenses in 1Q2025 doubled to US$0.17 million (+125.3%YOY) from US$0.08 million in 1Q2024. Staff Salary contributed US$0.09 million to the increase, rising 5.2%YOY to US$1.8 million in 1Q2025, due to an expansion of permanent employees and higher salaries.

Operating Profit for 1Q2025 was US$4.1 million, which increased 52.5% compared to the same period in the previous year. The operating margin rose to 24.7% in 1Q2025 from 14.7% in 1Q2024.

Other Income, Expenses and Net Attributable Profit

Interest expenses doubled to US$0.5 million in 1Q2025 as the Company obtained new loans to refinance the PSV and HLBs purchased last year. On the other hand, interest income rose by 32.0%YOY to US$0.1 million in 1Q2025, following strong cash flow generation.

Equity in net earnings of associates recorded a loss of US$0.04 in 1Q2025 compared to a gain of US$0.2 million in 1Q2024, reflecting the lower utilization experienced by our associated companies.

The sale of fixed assets contributed a gain of US$0.2 million from the disposal of low tier vessels in 1Q2025, effectively capturing the fleet’s monetary value. The Company recorded a FX loss of US$0.4 million from Rupiah denominated trade receivables, impacted by the strengthening of the USD.

Non-controlling interest was significantly higher at US$1.5 million compared to US$0.4 in 1Q2024, reflecting the share of minority interest in earnings from the PSV business, in which Wintermar holds a 51% stake. Net Attributable Profit for 1Q2025 amounted to US$1.6 million, a decrease by 25.6%YOY from US$2.2 million in 1Q2024.

The group’s EBITDA jumped by 20.2%YOY for 1Q2025, reaching US$7.6 million.

Industry Outlook

The long term outlook for offshore support vessels (OSV) is still positive, albeit in the near term, the industry has not escaped the uncertainty affecting global business sentiment that has emerged from policy fluctuations in the US. As a result of the imposition of tariffs, oil demand growth for 2025 has been revised down while geopolitical risks have risen amidst fears of escalating trade wars.

In 1Q2025, the global caution added to the seasonal slowdown in Asia which resulted in some delays to project commencements. However, planning is underway for several offshore drilling projects which are expected to ramp up towards the end of the year, which provide support for charter rates. The second-hand market has been active with higher prices being offered for used OSVs in operating condition, indicating that there is still strong demand in the coming years.

Business Prospects

The year has started on a slow footing, which has impacted utilization in 1Q2025 as 60% of the fleet is still exposed to short term spot contracts. Gross margins, which have been climbing, will be maintained due to the better fleet mix, as can be seen in the strong growth in gross profit and operating profit. The Company has taken delivery of 2 units of Heavy Load Barges in 1Q2025 which are expected to commence operations in 2Q2025 and secured additional high tier vessel contracts, thus supporting continued profitability in the latter part of the year. Looking ahead to 2026, we are still positive on the demand for DP vessels which will be needed for several new deepwater drilling projects which are in development this year.

Total contracts on hand as at end March 2025 has risen to US$71.9 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 RelationsPT Wintermar Offshore Marine Tbk

Tel (62-21) 530 5201 Ext 401

Email: investor_relations@wintermar.com