Jakarta: Indonesian shipowner Wintermar Offshore Marine has announced that it has reduced its planned 2015 capital expenditure by 40% to $30m to deal with market challenges. The company will also be postponing two out of three deliveries to the second half of the year when it expects more visibility on the outlook.
“Exploration work which we had expected to start in Indonesia has been delayed because of the bleak and uncertain outlook on oil prices. We continue to market our vessels in the region in 2015 but since the industry globally is facing severe cutbacks in capital expenditure, we expect price pressures amidst strong competition for work,” the company said in a release.
“The outlook for 2016 and beyond looks markedly better because of domestic factors and we believe that as Indonesian flagged shipowners we will have a better competitive environment arising from the domestic cabotage regulation when Indonesian activity starts to pick up again,” the company added.