WOM maintains growth

Wintermar Offshore Marine (WOM) has reported an 11% growth in first half net profits despite a slightly weaker second quarter.
Wintermar Offshore's AHTS Winposh Resolve

Wintermar Offshore's AHTS Winposh Resolve

Net income at the Indonesian offshore operator was $12.8m, while ebitda was $39.4m, a year-on-year growth of 24%.

Revenue from Wintermar’s owned tonnage increased 23% year-on-year to $56.5m, reflecting the increase in its fleet over the past 12 months.

In contrast revenue at its chartering division fell by 23% to $27.4m in the first half due to delays in government approvals for oil and gas contracts.

“However, margins in this division continued to rise, thus driving a 7% increase in the gross profit from this division,” Wintermar said.

“We would expect the chartering division to remain lackluster as the political factors continue to dominate for the rest of this year.”

The second quarter also saw Wintermar active in the corporate sector with a number shored up its balance sheet.

World Bank unit IFC converted its $10m convertible loan and became a shareholder of Wintermar with a 4.9% stake.

The Jakarta-listed shipowner also raised a further $8m from the sale of 116.9m new shares to investors.

Finally, it acquired a 51% stake in PT Fast Offshore Indonesia, which owns four fast multipurpose supply vessels (FMPV) which can be used to support deepwater drilling operations.

Wintermar said the vessels have previously been deployed in overseas markets, but are ready for work in Indonesia as they comply with cabotage requirements.

Looking ahead, the company said the pro-growth policy of Indonesia’s president-elect bodes well for the continued uptrend in the oil and gas industry.

“We would expect the activity in the upstream industry to pick up again once the new Cabinet is installed towards the end of this year,” Wintermar said.

“Since early 2014, exploration activity in the oil and gas sector has slowed because of political factors causing delays in obtaining government approvals for larger contracts.

“With the presidential election over, we are optimistic that the bottleneck will be soon addressed as one of the stated aims of the president-elect is to reduce bureaucracy and improve efficiency in government licensing procedures.

“The delay in government approval for large contracts has meant that our vessels exposed to exploration activity received shorter term contracts, leading to lower overall utilization rates in the second quarter of 2014 compared to a year ago.”

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