Philly Shipyard Sees Higher Income

Philly Shipyard 2016 has brought better financial fortunes for US-based shipbuilder Philly Shipyard, whose profit rose to USD 38.7 million from USD 17.4 million seen in 2015.  In 2016, the companys operating revenues stood at USD 233.6 million, against USD 307 million in 2015. Revenues and other income were primarily driven by the delivery of American Endurance, the first of four 50,000 dwt product tankers being built for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan, and by the progress on the Philly-Crowley and Matson projects. Philly Shipyards EBITDA for 2016 was USD 70.4 million, compared to EBITDA of USD 42.7 million in 2015. As of 31 December 2016, Philly Shipyard had an order backlog of approximately USD 784 million, with three APTs medium range 2 (MR2) tankers and two Matsons Panamax containerships under construction. The shipbuilder revealed its plans to focus on securing new contracts for large containerships in 2017. Although no firm orders are in place, Philly Shipyard has commenced preliminary design work to build Hulls 031 and 032 as container vessels, the shipbuilder said. In addition, Philly Shipyard intends to explore potential new construction projects in other areas of the Jones Act market, with a liquefied natural gas (LNG) propulsion being a consideration for potential owners.