Offshore oil and gas activities lift Wintermar revenues
Saturday, October 29 2011 - 01:13 AM WIB
The company booked revenues of Rp760 billion, jumped 80 percent from the previous corresponding period on ?robust offshore oil and gas activity.?
In the third quarter, Wintermar Offshore operated 6 new vessels which were delivered between June to July 2011. These contributed to own vessel revenue which increased by 40 percent in the nine months to end September 2011, compared to the same period in 2010.
Total gross profit from Own Vessel Division recorded growth of 43 percent in the nine months period to Rp160 billion, compared to Rp112 billion in the first three quarters of 2010.
Overall performance for the Own Vessel Division is in line with expectations based on the company's fleet expansion plans in 2011, and gross margins improved as a result of a stronger US Dollar and new vessels in the mid-tier segment which started operations.
In the Chartering Division, the continued strong activity in the upstream oil and gas sector contributed to the 136 percent growth in revenues compared to the first nine months of 2010. Gross profit contribution from Chartering division rose from Rp9 billion in 2010 to Rp14 billion in 2011.
Total Gross margin was 24 percent compared to 30 percent in 2010 because of the significantly higher proportion of chartering revenues which earn only 2-4 percent margins.
Total operating profit for 9M2011 was Rp135 billion, 40.6 percent higher than in 9M2010.
For 9M2011, Wintermar received significant contribution of Rp18billion from equity in net earnings of associate company as compared to only Rp9 billion in 9M2010, primarily from the investment in Fast Offshore Supply Pte Ltd in Singapore , and also received Rp7 billion from gain on sale of fixed assets according to company's ongoing the fleet renewal program.
Net interest expenses rose 15 percent to Rp22billion from Rp19 billion in the same period last year arising from new loans obtained in the financing of the new vessels, but the interest cost was offset by lower interest rates on borrowings as compared to last year. Net gearing remained low at 0.58 as at end September 2011.
In 3Q2011, the negative sentiment arising from the European sovereign debt crisis led to a significant strengthening in the US Dollar against nearly all world currencies.
This unexpected strength in the US Dollar had a negative impact on our net profit as it led to a FX loss which reversed a significant amount of FX gains attributable to the company's US Dollar loans that had been recorded in the company's other income in June 2011.
As a result, the total foreign exchange gains of Rp28billion that were recorded in the six months to June 2011 fell to only Rp 11 billion in the nine months to September 2011, compared to Rp17 billion in the same period in 2010. Therefore net other income fell to Rp14 billion for the nine months ended 30 September 2011 from Rp33 billion for six months ended June 2011. (romel)