Owned vessels
Revenue from owned vessels rose 42% YOY to US$26.2 million as new higher tier vessels acquired during the course of 2013 started contributing. Gross margins on Owned Vessels rose to 57.5%, helped by a higher proportion of higher value vessels coupled with the strength of the US Dollar. We took delivery of one Anchor Handling Tug during the first quarter. Gross Profit from Owned Vessels recorded a 60% increase YOY compared to the first quarter 2013.
Chartered vessels
Revenues from Chartering were down 7% compared to the first quarter 2013, as expected. However, gross profit from this Division increased 21% YOY to US$ 1.5 million, working out to margins of 8.8%. We expect the Chartering business to slow as we focus our marketing efforts on the new vessels in our fleet this year.
Gross Profit
In total, gross profit reached US$17.4 million, a 53% jump as compared to the corresponding quarter in 2013. This was largely driven by the Owned Vessel Division which accounted for 87% of total gross profit.
Indirect expenses and operating profit
Indirect costs rose by only 12% YOY for the quarter to US$14.2 million, with personnel costs again making up the bulk of the increase The rise in personnel costs was offset by a fall in professional fees.
Operating profit therefore recorded a sharp increase of 61% to US$13.9 million in 1Q 2014 compared to the preceding year. Operating margin was high at 31% against 21% in 2013.
Other income/(expenses)
Because of higher bank borrowings associated with the fleet expansion program in 2013, interest expenses rose by 55% to US$2.5 million. There were no vessel sales in the quarter, and income from associated companies fell to US$123,905 compared to US$695,361 in 1Q2013. This resulted in Other expenses of US$2.4 million for 1Q2014, as compared to US$223,196 in 1Q2013.
Net income before tax was 30% higher at US$7.6 million compared to US$5.8 million in 1Q2013.
Net profit and EBITDA
In the first quarter of 2014, Net Profit attributable to shareholders was US$7.6 million, a 30% increase over the same quarter in 2013. EBITDA has risen by 55% from US$12.4 million to US$19.1 million in 1Q 2014.
Earnings per share for the first quarter was 0.21 US cents, which is equivalent to Rp24, compared to US cents 0.16 in 2013 or Rp16 in 1Q2013. This is an increase of 36% in US dollar terms and 61% in Rupiah terms.
Total Assets and Gearing
By the end of 1Q2014, Total Assets rose to US$466million as compared to US$422 million as at end 2013.The carrying value of our fleet amounted to US$294 million.
Net gearing was 86% at the end of March 2013, compared to 69% at end 2013.
Outlook
The first half of 2014 is likely to be dominated by the ongoing Indonesian parliamentary and presidential elections. As a result we would expect there to be continued delays in the commencement of large oil and gas projects in the country which need governmental approvals. However, we are optimistic on the longer term prospects for oil and gas activity, particularly with the strong outlook for exploration in new offshore concessions which would bode well for the OSV industry in Indonesia.
Contracts
At 31 March 2014, the total value of contracts in hand is US$ 152 million.
About PT Wintermar Offshore Marine
PT Wintermar Offshore Marine Tbk (IDX:WINS) is an Indonesian offshore marine services company that owns a fleet of over 64 vessels ready to handle a large variety of marine support services required in upstream oil and gas exploration and production activities including transporting crew, equipment and supplies, as well as providing services such as anchor handling, towing, and mooring of offshore rigs. Our young and growing fleet, comprising a wide variety of vessel types, enables us to offer innovative vessel and logistics solutions to serve our client base of multinational oil and gas companies. In 2011, WINS became the first shipping company in Indonesia to be certified with Integrated Management System by Lloyds Register Quality Assurance, comprising ISO 9001:2008 (Quality), ISO14001:2004 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
Contact:
Ms Pek Swan Layanto
Investor Relations
investor_relations@wintermar.com
Editor: PR Wire
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