Wintermar?s operating profit jumps 197%, net loss shrinks
Saturday, October 29 2016 - 04:22 AM WIB
IDX-listed shipping firm PT Wintermar Offshore Marine Tbk said that operating profit in the nine-month period of this year jumped by 197 percent to US$7.1 million compared to $2.4 million in the corresponding period of last year, reflecting better cost controls despite continued pricing pressure.
The company, which provides shipping services to the oil and gas industry, however, said in a statement Friday that despite the improvement in profitability at the operating level, the decision to take an impairment loss resulted in a net loss attributable to shareholders of $ 7.5 million for the January-September period of this year, as compared to a net loss of $ 2.7 million for the same period of last year.
?In view of the current industry conditions there was an impairment loss taken on our fleet amounting to US$ 13.1 million, which contributed to a total pretax loss of US$ 14.1 million for the period,? it said.
?Management's continued strategy to control costs while maintaining quality and safety should help the company win a good share of work in the coming months. However, as utilization increases, there will be some additional costs as vessels are taken out of warm stack conditions,? the company said unveiling its strategy, adding that current contracts on hand as at end September 2016 is $124 million.
Elsewhere, Wintermar said owned vessels recorded a 22 percent, year-on-year (YOY) rise in gross profit to $10.1 million for the nine months ending September of this year (9M2016). Although utilization of high tier vessels was higher than the previous year, there was a significant adjustment of charter rates which led to a YOY fall of 6 percent in owned vessel revenues to $47.2 million for 9M2016.
The company said owned vessel margins were higher than the same period in the previous year only because of much tighter cost controls and warm stacking of ships. ?There were a number of projects which were completed in early 3rd quarter that were replaced by contracts with new pricing leading to lower QOQ revenue,? Wintermar said.
Meanwhile, Wintermar said chartering gross profit from this division rose to $2.4 million from $1.8 million the previous year.
Gross Profit from other sources rose to $0.8 million for 9M2016 compared to $0.5 million the previous year because of increased fee based services.
The company?s management continued to implement tighter cost controls and warm stacking which resulted in a decline in owned vessel direct expenses of 12 percent YOY to $37.0 million for 9M2016, mainly resulting from lower crew and fuel bunker expenses.
Gross rofit grew by 28 percent in 9M2016 to $13.5 million from $10.5 million for 9M2015. Overall gross margin improved to 19.3 percent in this reporting period from 13.8 percent in the same period last year.
Lower salaries and savings in utilities from a small downsizing in office space contributed to a 22 percent fall in indirect expenses, which contributed to the improvement of the operating profit.
?As we continued to pay down debt over the course of the year, interest expenses fell 10 percent to $6.6 million,? Wintermar said.
EBITDA for 9M2016 rose by 23 percent to $28.4 million as compared to 9M2015.
Editing by Reiner Simanjuntak