Wintermar H1 gross profit grows 19%
Thursday, July 28 2016 - 12:39 PM WIB
IDX-listed oil and gas mining service firm Wintermar Offshore Marine Tbk reported on Thursday that its gross profit grew by 19 percent to US$ 10.5 million from $ 8.8 million in H1 2015, driven by better margins in all divisions.
No information was provided on the firm?s net profit.
The firm said high tier vessels experienced an increase in utilization to 62 percent in H1 2016 compared to 58 percent in H1 2015, largely from the resumption of one development contract which had been suspended since January 2015, and some new spot contracts. Because of successful cost control measures implemented since last year, margins improved in the Owned Vessel division, thereby providing a 5 percent increase in Gross profit at $7.9 million compared to H1 2015.
Chartering Division revenues rose by 11 percent to $13.6 million with a rise in profit to $2.0 million owing to one-off contracts which are expected to finish by the year end.
Gross profit from others sources also rose in 2016 to $600,000 compared to $186,000 in the previous year resulting from a lump sum bill.
Owned Vessel cash costs were lower compared to the same period in the previous year, primarily from lower crew and fuel costs. Total direct expenses for Owned Vessels was down 14 percent against a 10 percent drop in revenues, with overall gross margin improving to 21.5 percent in this reporting period from 16.3 percent a year ago.
Gross Profit grew by 19 percent in H1 2016 to US$10.5 million from US$ 8.8 million for H1 2015, driven by better margins in all divisions.
Indirect expenses fell by 21 percent in H1 2016 owing to strict cost controls implemented, which led to falls in most expense categories. Salary expenses in particular were 19 percent below H1 2015 despite the additional month paid for Hari Raya bonuses in June 2016.
As a result, operating profit jumped 89 percent to $6.1 million in H1 2016, a rise in operating margin to 13 percent for the period compared to 6 percent last year.
Interest expenses fell 8 percent to $4.9 million after scheduled debt repayment and a prepayment after the sale of a vessel in 1Q2016. The sale transaction resulted in a book loss of $1.9 million recorded in Q1 2016.
EBITDA for H1 2016 amounts to $20.3 million, a rise of 19 percent compared to the same period last year.
Net gearing fell to 52 percent as compared to 60 percent at end of H1 2015.
Management continues to focus on cost control while maintaining high safety and quality standards. There were a number of initiatives in early 2016 to lower crew and shore-based salaries, which were successfully implemented. We have extended our international marketing efforts to bid for longer term contracts in Brunei, India and the Middle East to lock in a longer term cash flows, albeit at lower charter rates. We believe that the OSV market will stay weak through 2017 and lag any recovery in oil prices.
The firm?s current contracts on hand as at end June 2016 are worth $137 million.
Editing by Johannes Simbolon