Higher demand expected for offshore supply vessels: Wintermar

Indonesia’s Wintermar Offshore Marine expects higher demand for offshore supply vessels (OSVs) driven by a jump in approved deep-water oil and gas investments and tight OSV supply.

Wintermar is spending to enhance its fleet and positioning itself to capitalise in the anticipated upturn in the oil and gas sector.

The company expressed a bullish outlook on the oil and gas industry as a jump in approved investments in deep-water projects is expected to boost demand for high-value OSVs in the coming years. Wintermar said it aims to ride on the upturn, having added high-tier fleet capacity, and stands to benefit from rising charter rates.

The contractor acquired two more vessels in 2021, six additional vessels last year and in 2023 to date has spent $3.15 million of this year’s projected $18 million capital expenditure on adding another vessel to its fleet.

Out of these nine OSVs, five are currently operational. Meanwhile, of the remaining four vessels, it is expected that two will start work before the end of June, one vessel is ready to work in July, leaving only one vessel still in the process of reactivation.

Wintermar’s fleet utilisation in the first quarter of 2023 was 67%, an increase from 61% from one year before, but still below the 82% utilisation rate of 82% in the fourth quarter of 2022. The contractor attributed the decrease in utilisation to several vessels undergoing a transition after the completion of contracts.

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“Some vessels were undergoing maintenance for preparation of long-term contract engagements,” commented Wintermar.

Charter rates

Management revealed that average vessel charter rates so far in 2023 are 35% higher than the average rental rates in 2022 for high-tier vessels and 8% for mid-tier vessels.

“With the improvement in the oil and gas and OSV sector, we are expecting an increase in charter rates and utilisation in the second half of 2023. This reflects the success in securing several longer-term contracts that will commence in the third and fourth quarters of 2023,” the company added.

Wintermar managing director, Sugiman Layanto, expressed confidence in the coming years, not least because the supply for OSVs remains tight due to the industry downturn over the past years during the Covid-19 pandemic.

Looking to the future, the company will continue its strategy of acquiring more higher-value vessels to improve the profitability of its almost 50-strong overall fleet.

All its vessels are operated by Indonesian crews, tracked by satellite systems and monitored in real-time by shore-based teams.

Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register.