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Wintermar hit by $3.6m provisions, sinks to 2015 loss

Wintermar hit by $3.6m provisions, sinks to 2015 loss
Offshore vessels owner and operator Wintermar Offshore Marine has reversed into a loss for 2015 as against the profit in 2014 due mainly to a $3.6m provision for asset impairment and doubtful debts.

Net loss for last year was recorded at $5.69m as against the profit of $21.72m in 2014, while revenue dropped by 44% year-on-year to $99.92m.

Indonesia’s Wintermar made a provision for fleet impairment of $1.1m, and provision for doubtful debts of $2.5m mainly receivables from a customer that has closed operations in Indonesia, bringing the total provision to $3.6m.

The provisions are taken in view of the uncertain outlook for the industry in 2016, and the likelihood of a longer period of low oil prices.

“The global volatility in oil prices led to widespread postponement of development projects while most oil exploration activities were halted,” Wintermar commented.

“Global sentiment remained bearish in the fourth quarter as oil production continued to rise while demand was below expectations as the global growth forecasts were revised down,” it said.

Looking ahead, Wintermar said that some Indonesian projects, which have been delayed for the past year, are restarting in 2016. “We are optimistic that the recent activity in our domestic market will pick up as oil prices stabilise,” the company said.

“The government is targeting an improvement in oil lifting which will be contributed by the commencement of several development projects in Indonesia which expect to start production in the coming few years.”

Wintermar noted that with the increase in activity, its orderbooks have picked up and contracts on hand as at March 2016 amounted to $170m.