WINS 2Q24 Earnings Results - Thesis Is Playing Out as Expected

WINS 2Q24 Earnings Results - Thesis Is Playing Out as Expected

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Wintermar (IDX: WINS) reported revenue of $20 million in 2Q24, a 30% year-over-year (Y/Y) increase and an 8% quarter-over-quarter (Q/Q) growth. This growth was driven by the rise in average daily rates for high-tier vessels from $16,878 per day in 1Q24 to $22,069 per day (excluding FMPV vessels chartered out at bareboat rates). However, the overall utilization rate decreased from 71% to 63%.

WINS recorded a net profit of $11 million. Core earnings, excluding one-time gains/expenses, amounted to $2.8 million, a 34% increase from $2.1 million in 1Q24.

Management expects the overall utilization rate to be around 70% for 2024, slightly lower than the initial guidance of 72%. This is due to most of WINS' vessels being in the spot market, with two PSV vessels undergoing reactivation (expected to be completed in 3Q24 and 1Q25) and one PSV vessel currently in drydocking.

Looking ahead, we anticipate an improvement in the utilization rate of high-tier vessels in 2H24 due to: 1) two PSV vessels securing long-term contracts for two years in June, and 2) two PSV vessels returning to operation after reactivation and drydocking.

The average daily rates are expected to continue growing, driven by supply constraints in the Southeast Asian OSV market. To capitalize on this, WINS is actively seeking additional vessels. WINS' net gearing target is 30%.

Following a sell-off in recent days, WINS is trading at IDR 492 per share. Our estimated fair value range is IDR 574-689 per share.

Disclaimer: This is not an investment recommendation. Please conduct your own due diligence.