@Rp350 per share to raise Rp 70 billion of new equity
JAKARTA — PT Wintermar Offshore Marine Tbk will issue 200 million new shares without pre-emptive rights at a price of Rp350 per share in February. This issuance will raise new equity of Rp70 billion and improve the Company’s capital structure.
The share issuance represents half of the tranche of 400 million new shares that was approved by shareholders in the Company’s EGM in May 2017. As previously informed through Disclosure Information, these shares will be issued to the principal controlling shareholder, PT Wintermarjaya Lestari. The funds will be used for working capital needs and to reduce debt.
Business Outlook
The recent weeks have seen a sustained rise in oil prices, and the Company has benefitted from an increase in activities. This rise in activity requires a higher level of working capital to prepare and mobilize vessels to commence operations. With the start of several new contracts, fleet utilization has risen to 70% in December 2017.
Wintermar has also widened our scope of activities, as seen in the recent successful award of an Air Diving and Sub Sea contract through a consortium with specialists in the field. At the end of December 2017, contracts on hand were US$100million.
Strategy
We will continue to sell our low tier and older vessels to continue our strategy to keep our fleet young, while starting to invest in strengthening our organization through selective hiring. As the market regains momentum, this new injection of equity will provide a reserve of cash for any potential business opportunities.