Wintermar 2013 Profit Up 34% on Rising Demand

Wintermar 2013 Profit Up 34% on Rising Demand

Jakarta. Wintermar Offshore Marine, an Indonesian shipping services company, posted a 34 percent increase in profit last year, supported by demand for offshore vessels.

Net income at the company rose to $27 million last year from $20.2 million in the previous year, while its revenue experienced an increase to $187 million from $124 million a year earlier.

“[The growth was supported by] the need for offshore vessels because of increased exploration activities in offshore oil and gas concessions [in 2013],” said Pek Swan Layanto in an e-mailed response sent to Jakarta Globe on Tuesday.

The company generated revenue from renting out its own vessels as well as those belonging to a third party.

Pek Swan said revenue from renting owned vessels rose 51 percent to $98.7 million last year from $65.3 million in the previous year. Leasing contributed 53 percent to the company’s total revenue.

Meanwhile, revenue from chartering third-party vessels jumped 71 percent to $78 million last year as Wintermar saw high demand in deep water drilling. The activity made up roughly 42 percent of its total revenue.

“The contracts are mainly on short term tenures given the high number of exploration activities [in 2013], but we are not expecting the same growth in 2014,” the company said in a filing to the Indonesia Stock Exchange (IDX) on Tuesday.

Pek Swan said the company targets profit to grow at least by 20 percent this year. She declined to give a detailed revenue growth forecast.

The shipping service company set aside $60 million as its capital expenditure this year to buy five new vessels.

Wintermar has operations in Java, Sumatra, Kalimantan, and Papua, with overseas dealings in Singapore, Malaysia, Thailand, India, Cambodia and Vietnam.

The company has secured contracts valued at $111.2 million as of March this year, according to the company’s filing. It did not provide target deals for this year.

Shares of Wintermar rose 2 percent to Rp 770 on the Indonesia Stock Exchange on Tuesday, compared with 0.4 percent fall in the main stock gauge.

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