Philly Shipyard Reports Rise in Profits, Revenues
- Business & Finance
US-based Philly Shipyard reported a net income of USD 68 million for the full year 2017, compared to a net income of USD 38.7 million posted a year earlier.
The shipyard’s 4Q 2017 net income also rose to USD 31.5 million from USD 19.3 million seen in the same quarter of 2016.
Philly Shipyard achieved record high revenues and profits in 2017. Operating revenues and other income in 2017 ended at USD 615.8 million, compared to operating revenues and other income of USD 233.6 million in 2016. As explained, the main drivers of the record high revenues were the deliveries of three product tankers to Kinder Morgan, as well as continued progress on two containerships for Matson.
In November 2017, the shipyard delivered the final vessel of a series of four product tankers to Kinder Morgan, as assignee of Philly Tankers. With this delivery, Philly Tankers divested all of its shipping assets and intends to initiates a liquidation process promptly, Philly Shipyard said.
At the end of the fourth quarter of 2017, Philly Shipyard was building two containerships under contract with Matson. As informed, the boxships are 54% complete.
Earlier this year, Philly Shipyard and shipping company TOTE announced they will not extend their letter of intent for a containership project.
The shipbuilder said the delay has caused “a slowdown of various departments.” Following the breach of the contract, Philly Shipyard plans to temporarily cease certain operations and place some employees in a layoff status.
“Philly Shipyard has reduced and will continue to adjust its workforce in line with its backlog,” according to Philly Shipyard.
The shipbuilder also said it is exploring alternatives in order to secure contracts and financing for these vessels.
As of December 31, 2017, Philly Shipyard had an order backlog of USD 187.7 million.