I. Oil Shock
The sharp decline in oil prices at the end of March resulted from the lack of agreement from OPEC+ and the sudden decline in oil demand caused by global lockdown measures to contain the spread of the COVID-19 pandemic.
After a sharp decline in April 2020, oil prices have started to stabilize around US$40 per barrel as economic activity is recovering around the world. EIA's short term energy outlook for July 2020 predicts that demand will rise more than supply. If oil prices start to rise again there are up to US$35 bn in oil and gas projects in Asia which are likely to be commissioned in the coming years.
II. Wintermar's actions during the downturn
The Company explained the actions taken by management in the past few months to reduce cost and preserve cash to mitigate the effects of COVID-19. Despite the sharp decline in oil prices and cancellation of some contracts, the Company has been able to win short term contracts and are still tendering for longer term contracts. Through these measures, the Company has managed to maintain a positive cash flow.
III. Wintermar's position
Wintermar's fleet is engaged in the upstream segment of oil and gas industry. In South East Asia, Wintermar now ranks 7th in terms of number of vessels and has built a strong reputation as a high quality player operating internationally. With net gearing at 38%, the Company has managed to come out leaner and stronger from the crisis and is well positioned for a recovery in the oil and gas industry.
As at end of July 2020, the Company's Contracts on hand amounted to US$ 69 million.
About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real time by shore-based Vessel Teams.
Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd's Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.
Contact:
Ms. Pek Swan Layanto, CFA Investor Relations PT Wintermar Offshore Marine Tbk Tel +62-21 530 5201 Ext 401 Email: investor_relations@wintermar.com
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source http://www.acnnewswire.com/press-release/english/60962/