JAKARTA, Apr 26, 2021 - (ACN Newswire) - Wintermar Offshore Marine (WINS:JK) has reported results for the full FY2020, achieving a gross profit of US$1.1 million, turning around from a gross loss of US$1.27 mil in FY2019, as utilization rose to 66% in Q42020. The rise in vessel utilization provided a boost to revenue of US$11.9 million for 4Q2020, and brought the Company back to a gross profit for the full FY2020.A strong 4th quarter saw high tier vessel utilization reach 77% as several drilling projects commenced. Although revenue for FY2020 was 23% lower than FY2019, the significant cost control measures in the past year brought total direct expenses down by 26% YOY.
--Owned Vessel Division
As oil prices stablilised, there was a recovery in drilling activity in 4Q2020, particularly benefitting the high tier fleet which saw utilization jump to 77% for the final quarter. This boosted Owned Vessel revenues by 24.4% QOQ to US$9.1million in 4Q2020.
Overall fleet utilization for FY2020 was 63% which was similar to FY2019. Total Owned Vessel revenue for FY2020 was US$33.8 million, a YOY decline of 18% compared to FY2019. However, the fleet streamlining and cost control measures implemented by management for the past year have borne fruit as reflected in a 23% decline in Owned vessel direct expenses at US$ 34.0 million. Vessel sales over the past year and asset impairment contributed to lower depreciation of US$14.8 million in FY2020 compared to US$23.4 million in FY2019. Crew costs were 10% lower YOY at US$9.0 million while fuel costs fell 22% YOY to US$2.3 million. Operational costs, however, increased 21% YOY to US$4.9 million primarily due to COVID-19 related costs and mooring costs when the vessel is idle.
--Chartering and Other Services
Chartering activity was affected by COVID-19 and revenue for this division declined by 34% to US$7.4 million. Gross Profit from Chartering fell to US$0.7 million for FY2020 compared to US$1.2 million in FY2019.
--Indirect Expenses and Operating Loss
Indirect Expenses declined by 23% YOY to US$5.8 million for FY2020, largely contributed by a lower headcount of 141 at the end of December 2020 compared to 172 staff the year before, and a voluntary salary reduction led by the Directors of the Company and supported by the participation of all employees to help the Company through the COVID-19 pandemic. Staff salary was 20% YOY lower at US$3.6 million compared to US$4.5 million in the previous year. Other reductions were seen in Professional fees which fell by 38% to US$0.4 million, marketing and travelling which fell by 68% and 54% respectively due to the travel restrictions imposed for COVID-19. Office depreciation fell by 53% to US$0.14 million as certain equipment was fully depreciated.
The Operating Loss nearly halved to US$4.7 million for FY2020 compared to US$8.8 million in FY2019.
--Other Income, Expenses and Net Attributable profit
As the Company has reduced overall bank debt by US$8.5 million to US$46.1 million by end of December 2020, the interest expenses saw a sharp decline of 26% YOY to US$3.5 million. However, this was offset by a loss from equity in associates of US$1.6 million for the year compared to a profit of US$1 million in FY2019. Profit from sale of fixed assets was US$1 million, arising from the sale of 5 vessels and a building in 2020. This was lower than the profit of US$2.2 million from the sale of 5 vessels in FY2019.
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