Philly Shipyard Posts Higher H1 Net Income

Oslo-listed Philly Shipyard ASA recorded USD 19.4 million in net income for the first half of the year, considerably up from last year’s USD 7.4 million.

However, net income for the second quarter reached USD 2.2 million, down from corresponding USD 5.4 million.

Operating revenues for the second quarter and the first half of 2017 stood at USD 47.2 million and USD 215.1 million, respectively, compared to USD 28.6 million and 64.3 million in the same period in 2016.

Philly Shipyard said that June 2017 year-to date operating revenues and other income were primarily driven by the delivery of a vessel to Kinder Morgan, the related sale by Philly Tankers of its Hull 026 shipping assets to Kinder Morgan and continued progress on the Matson vessels.

With regard to the business outlook, the company said that its main focus for 2017 would be the delivery of two remaining product tankers to Kinder Morgan, and continued progress on the containerships under construction for Matson.

Philly Shipyard is also working on securing new contracts to expand its order backlog beyond Hull 030 and seeking capital to finance the construction of new vessels.

As informed earlier, the company is exploring opportunities in the Hawaii containership trade and is engaged in “advanced talks” with an unidentified Jones Act operator concerning an order for up to four new vessels for service in this trade.

“Although no firm order is in place, Philly Shipyard has initiated construction of these vessels for its own account. Philly Shipyard has ordered a vast majority of all long-lead items, including the main engines and other high priority items, for the first pair of these vessels. These vessels are a continuation of the series of similar containerships currently under construction at Philly Shipyard for Matson,” the company added.

The start of full production for Hull 031 is planned for Q2 2018; however, full production start is dependent upon the satisfaction of certain contingencies, including securing a firm order and/or construction financing for this vessel.

According to Philly Shipyard, the delay in securing new orders has already negatively impacted the optimal production schedule for these vessels.

The company is also looking into new construction projects in other areas of the Jones Act market, and has teamed with Fincantieri Marine Group and Vard Marine to compete for the detail design and construction of the U.S. Coast Guard’s next generation heavy polar icebreaker.

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