Wintermar books 30% growth in Q1 profit

By Romel S. Gurky

IDX-listed oil and gas marine service provider PT Wintermar Offshore Marine Tbk (WOM) announced on Monday that its net profit attributable to shareholders was US$7.6 million in the first quarter of 2014, a 30 percent increase over the same quarter in 2013. EBITDA has risen by 55 percent from US$12.4 million to $19.1 million in 1Q 2014.

Earnings per share in the first quarter were 0.21 cents, which is equivalent to Rp 24, compared to 0.16 cents in 2013 or Rp 16 in the first quarter of 2013. This is an increase of 36 percent in US dollar terms and 61 percent in rupiah terms, the firm said in a statement filed with the Indonesian Stock Exchange.

Revenue from owned vessels rose 42 percent YOY to $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 percent, helped by a higher proportion of higher value vessels coupled with the strength of the US Dollar. The firm took delivery of one Anchor Handling Tug during the first quarter. Gross profit from owned vessels recorded a 60 percent increase YOY compared to the first quarter 2013.

Revenues from chartering were down 7 percent compared to the first quarter 2013, as expected. However, gross profit from this division increased 21 percent YOY to $1.5 million, working out to margins of 8.8 percent.

?We expect the chartering business to slow as we focus our marketing efforts on the new vessels in our fleet this year,? the firm said.

In total, gross profit reached $17.4 million, a 53 percent jump as compared to the corresponding quarter in 2013. This was largely driven by the Owned Vessel Division which accounted for 87 percent of total gross profit.

Indirect costs rose by only 12 percent YOY for the quarter to $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 percent to $13.9 million in the first quarter of 2014 compared to the preceding year. Operating margin was high at 31 percent against 21 percent in 2013.

Because of higher bank borrowings associated with the fleet expansion program in 2013, interest expenses rose by 55 percent to $2.5 million. There were no vessel sales in the quarter, and income from associated companies fell to $123,905 compared to $695,361 in the first quarter of 2013. This resulted in other expenses of $2.4 million for the first quarter of 2014, as compared to $223,196 in the first quarter of 2013.

Net income before tax was 30 percent higher at $7.6 million compared to $5.8 million in the first quarter of 2013

By the end of the fist quarter of 2014, Total assets rose to $466million as compared to $422 million as at end 2013.The carrying value of the firm?s fleet amounted to $294 million.

Net gearing was 86 percent at the end of March 2013, compared to 69 percent at end 2013.

?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,? it said.

At 31 March 2014, the total value of contracts in hand is $152 million

Editing by Johannes Simbolon