Public listed shipping company Wintermar Offshore Marine (WINS) planned to disburse as much as US$ 13 million in total for this year (2022) for the completion of six vessels that have been started since late last year (2021).
The booming drilling activities following the higher oil price have encouraged the corporate to make this investment, Wintermar’s top executive said, as quoted by Kontan.
This investment (capital expenditure) for the six vessels began last year, in which the corporate poured as much as US$ 4 million into the budget year of 2021. This year, Wintermar will spend as much as US$ 13 million as a part of this six vessels project package.
Wintermar President Sugiman Layanto said that at the end of 2021, WINS issued a capital expenditure (CAPEX) of US$ 4 million to buy two vessels. The remaining four vessels worth US$8 million, Sugiman said, would be realized this year. So, in the last seven months, Wintermar has absorbed a CAPEX of up to US$ 12 million.
“In 2021, after six years without new fleet procurement, we started our growth strategy by purchasing two vessels. This year we continue our new fleet investment by procuring four other vessels,” Sugiman said in a Virtual Public Expose on Friday, June 24, as Kontan quoted.
Of the six vessels purchased, Sugiman explained, three of them are in the process of reactivation. They are expected to operate in the second half of this year. Thus, until June 2022, WINS has 42 vessels, most of which are mid-tier and high-tier.
So, in 2022, the company has budgeted a CAPEX of US$ 13 million, US$ 5 million of which are projected to be absorbed by the end of 2022.
“We have disbursed $8 million in the first quarter of 2022, a part of total Capex this year. Other US$ 5 million will be poured before the end of this year.”
“In the second half, there will be one additional vessel,” said WINS Investor Relations Pek Swan Layanto added.
Sugiman is optimistic that this investment in new fleets will positively impact the company’s business in the future. Sugiman said the oil price increase amid the geopolitical conflict between Russia and Ukraine would trigger more drilling activities, giving more work to the company (Wintermar).
“The increased drilling activities will provide us more opportunities to create profitability. With the newly purchased PSV vessel, reactivity is expected to contribute to our bottom line, and maybe it will be seen in the fourth quarter,” said Sugiman.
