PT Wintermar Offshore Marine net profit up 23% in 2012
PT Wintermar Offshore Marine (WINS) FY2012 net profit grew 23% YOY to USD20.2million with EBITDA growth of 27% due to contribution from new higher value vessels. EPS increases to 0.57 US cents per share (equivalent to IDR 53 per share), said in the company's press release.
Revenues from Owned Vessels rose by 20% to US$65.3million in FY2012 compared to FY2011, fuelled by fleet additions of 13 units of higher value vessels (12 mid and 1 high tier) in 2011 and 3 additional vessels (2 high tier and 1 mid tier) in 2012. We took delivery of 2 units of 8000HP Anchor Handling Towage and Supply Vessels and 1 unit of Anchor Handling Tug in the second semester of 2012 for a total investment of US$48million. During 2012, higher value vessels (ie, mid and high tier) contributed 77% of Owned Vessels Revenue, and by the end of December 2012, made up 50% of fleet composition. Utilisation rates for Mid and High tier vessels were 83% and 76% for FY2012 compared to 68% for low tier vessels.
Gross margins for own vessels remained stable at 46% compared to 46.5% in 2011 with overall fleet utilisation rate maintained at 74%. In late 2012 we also upgraded one PSV to full Dynamic positioning 2(DP2) certification, bringing the total number of DP2 vessels in our fleet to 5.
Chartering
Revenues from Chartering of third party vessels fell by 14% YOY to US$43.1million as we prioritized our new fleet of owned vessels. However we were able to raise our chartering margins, resulting in a 10% growth in Chartering Division profit to US$2.6million, compared to the previous financial year.
Ship Management and Other Services
Ship management and other services rose by 106% in 2012 from a low base to US$2.4million, helped by a one off contract.
Total Gross Profit rose by 22% to US$35million over the previous financial year, and gross margins rose to 28.2% from 24.8% in FY2011 as the business mix favoured the more profitable Owned Vessel Revenues.
Operating Profit
Total operating profit for FY2012 was US$26.6million(+24%YOY). As we restructured our fleet to focus on higher value vessels in the mid and high tier segment, the impact to revenue outweighed our higher costs of personnel to support the new vessels, thus our operating margins improved from 18.5% in FY2011 to 21.5% in FY2012.
Indirect expenses rose by 14%, of which the largest cost is salary costs, which rose 13%. Marketing expenses also rose as we bid for higher value vessels which require a higher bid bond.
Other income and expenses
As the fleet expanded, we took on more debt as planned, resulting in an increase in interest expenses of 45% to US$5.4million YOY. This was mitigated by higher interest income and income from associate companies. We also booked a profit of US$1.8million on gain on sale of vessels from our sale of 6 units of low tier vessels over the course of the year.
Net Profit and EBITDA
Income after tax and minorities was US$20.2million, a rise of 23% over FY 2011. The EBITDA for the FY2012 totalled US$40.4million, which was higher by 27% compared to FY2011.
Assets and Liabilities
Total Assets grew by 27.8% to US$338.9million while the book value of our vessels rose to US$233million at the end of 2012 from US$177million the previous year. Total equity as at end 2012 was US$177.4million, up 23.9% from end 2011. Financial debt as at end December 2012 totalled USD97.8million, with net debt to equity at 45.3%.
Outlook
The cabotage exemption for DP2 Vessels, Platform Supply Vessels (PSV), AHTS above 5000BHP and Diving Support Vessels ended on 31 December 2012, and there has been a notable increase in charter rates for available Indonesian flagged vessels in the high value category. Several large exploration projects are starting in the second half of 2013 and tenders for PSV and AHTS are being announced. WINS is in the process of tendering for several contracts and some awards are expected in the second quarter of the year.
As at end February 2013, the total contracts on hand are worth US$ 208 million.
