Total Gross Profit increased 140%YOY to US$5.4 million for the first half of 2023 (H1 2023), while total revenues were 24.4% higher at US$ 31 million, primarily driven by higher charter rates and additional fleet commencing operations.
In the first half of 2023, Owned Vessel’s gross profit experienced an exceptional increase to US$ 3.1 million from revenues of US$ 19.2 million. This was achieved due to securing higher charter rates despite a decrease in fleet utilization from 66% in 1H2022 to 61% in H1 2023. The lower utilization was due to a transitionary period where some vessels came off longer-term contracts and were undergoing necessary maintenance before being deployed to new contracts.
As a result, maintenance costs increased by 80.0% YoY, with most of the increase focused on the higher-value vessels. Bunker costs also rose by 23% to US$ 1.3 million due to more vessels being out of contract. In expectation of higher rates in the second half of the year, management was more selective in tendering for work during the period, contributing to the lower utilization.
PT Wintermar Offshore Marine Tbk and Subsidiaries (the Company) currently owns a fleet of 42 vessels, including nine higher-value vessels acquired since 2021, including one mid-tier vessel acquired in Q2 2023. Of the nine additional vessels, six were operational in Q2 2023, and two more commenced work in June and July, with one expected to be deployed in the second semester of 2023, leaving only one in the reactivation process.
Chartering and Other Services
For the first half of 2023, Chartering Revenue was nearly flat at US$ 8.1 million compared to US$ 7.9 million in H1 2022. Due to lower margins, the gross profit from Chartering Division fell by 26.5%YOY to US$ 0.7million. This was also because one of the chartered vessels was acquired in Q2 2023 as the Company had secured a long-term contract. Other Services Revenue and Gross Profit increased significantly to US$ 3.8 million (+47.2% YoY) and US$ 1.6 million (+40.7% YoY), respectively.
Indirect Expenses and Operating Profit
Management continued to exercise tight cost control in the first half of 2023. There was a one-off reversal to employee pension liabilities from the change in the omnibus law, which resulted in a 4.5% YOY decrease in indirect expenses to US$ 3 million. Due to the much-improved industry conditions and controlled expenses, the Company booked an operating profit of US$ 2.4 million for H1 2023 compared to a loss of US$ 0.9 million in H1 2022.
Other Income, Expenses, and Net Attributable Profit
Interest expenses fell by 26.1% YOY to US$ 0.5 million as the group continued to reduce its outstanding bank debt. This resulted in a net debt-to-equity ratio of just 6.5% at the end of the first half 2023.
The business’s strong performance resulted in a net income attributable to shareholders of US$ 1.1million for the first half of 2023, compared to a loss of US$ 1.0million in the same period of 2022.
The group’s EBITDA also jumped by 64% YOY to US$ 8.7 million.
Company Business Outlook
The Company expects a stronger performance throughout the remainder of the year, driven by the successful award of several contracts for high-tier vessels. These contracts feature charter rates much higher than previous rates, with commencements expected in Q3 and Q4 of 2023. This positive development aligns with the overall improvement in OSV market conditions, followed by the rising global OSV utilization and increasing charter rates. As of the end of June 2023, the Company’s Contracts on hand amounted to US$ 79 million.
