Wintermar Offshore slashes capex on lower oil price

JAKARTA ( – PT Wintermar Offshore Marine Tbk, an offshore supporting vessels (OSV) provider, said it slashes its capital expenditure (capex) for this year to only US$33 million, compared to US$55 million in 2014, driven by a cut of investment of oil and gas companies, in particular in offshore explorations and production in the midst of falling global oil price.

The company’s Head for Investor Relations, Pek Swan Layanto said that the capex will be used to purchase a further 3 new vessels to maintain its fleet of modern and young vessels in anticipation of business upturn at the end of 2015.

Pek Swan Layanto said, “There are 4 potential upstream oil and gas projects in Indonesia that have production targets in 2018-2020 and we are optimistic that the present situation could turn around quickly within the next 9 to 18 months when oil prices recover.”

PT Wintermar Offshore Marine Tbk held its Annual General Meeting, Extraordinary General Meeting of Shareholders and Public Expose on Thursday 7th May 2015. The Company reported net income for 2014 of US$ 21.7 million down 22% from the previous year.

The sudden sharp drop in oil price since November 2014 has had a negative impact on the oil and gas industry globally. Sugiman Layanto, Managing Director said, “Until oil prices find a stable level most exploration work in Indonesia is being postponed and several rig contracts are being terminated.” (*)

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[image: Wintermar]

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