Wintermar Offshore Marine Group reported a 31% year-over-year increase in operating profit to US$23.3 million for the fiscal year ending December 31, 2025, driven by margin expansion through an improved fleet composition. Core profit attributable to shareholders rose 19.2% to US$18 million, reflecting stronger operational performance despite geopolitical concerns and shorter-term drilling projects that reduced vessel utilization compared to 2024.
The owned vessel division saw revenue increase 13.8% to US$70.7 million, with gross margins widening to 41.7% from 36.1% the previous year. This improvement occurred despite softer charter rates and lower offshore activity, compensated by higher revenue from operating more Dynamic Positioning (DP) equipped vessels. The company operated a larger number of higher-value units throughout the year, with seven Platform Supply Vessels (PSVs) operational by December 2025 compared to five at the end of 2024.
Total gross profit increased 24.1% to US$32.7 million, though the company faced rising costs in several areas. Crewing costs grew 10.5% to US$11.4 million due to more DP vessels in operation and increased overseas contracts, while depreciation rose 10.4% to US$14.8 million from the full-year impact of fleet additions. The company strategically reduced its chartering division contribution, which declined to US$0.5 million from US$1.4 million, while growing its management fee-based ship management business recorded in the other services division, which increased 9.3% to US$2.8 million.
Indirect expenses rose 10% to US$9.4 million, primarily from salary costs increasing 11.9% to US$6.5 million as employee strength grew to 252 from 244 to support fleet expansion. Marketing expenses increased 17.2% due to tender participation costs. The company's financial position remained strong with increased cash flow from operations, though interest expenses rose 83.5% to US$2.1 million as the company took on more debt to refinance vessels.
Industry conditions appear favorable for continued growth, with geopolitical risks in 2025 prompting governments to prioritize energy security over long-term climate goals. The International Energy Agency revised electricity demand growth upward to 3.7% in 2026, well above the 2015-2023 average of 2.6% annually. This has led to increased investment in oil and gas exploration, particularly in deepwater drilling. The company noted that attacks on Iran and ensuing retaliation in early 2026 disrupted Middle East oil and gas supplies, potentially triggering further exploration investment as energy nationalism becomes more prevalent.
Wintermar is positioned to benefit from these trends, with Indonesia alone hosting four government-identified strategic deepwater drilling projects scheduled for production between 2027 and 2030. The company expects longer-term contracts for these projects to be awarded as activity ramps up in the second half of 2026. With stronger cash flow anticipated in 2026, management plans to expand the DP fleet through vessel purchases or corporate acquisitions, budgeting more than double the US$41.7 million capital expenditure of 2025. The company had US$59.1 million in contracts on hand at the end of December 2025. For more information, visit https://www.wintermar.com.
