In its latest quarterly report released today, Philly Shipyard reports that currently, there is no shipbuilding or repair activity at the shipyard and all production facilities are idle and both graving docks are empty. Today, Philly Shipyard employs approximately 80 people. Philly Shipyard plans to keep a core group of employees to focus on efforts to secure new orders and transition the shipyard into a mix of commercial and government work.
MARAD SHIP REPAIR JOB
However, the report notes that the yard has also begun to recall some of its laid-off workers to staff a short-term repair contract awarded to it on July 2, 2019 to perform modernization, repair and maintenance work on the SS Antares, a U.S. Maritime Administration cargo ship that is managed by TOTE Services. It is planned that the vessel will arrive at the end of July with the repair and maintenance effort expected to last approximately two months. Philly Shipyard says its objective is to win similar repair and maintenance contracts going forward in order to continuously utilize its drydocks as part of its plan to reconstitute its workforce.
The company reports that it had total cash and cash equivalents of $58.8 million at 30 June 2019, excluding $69.0 million of restricted cash and that until pre-production activities related to a potential new shipbuilding project start, it expects to maintain a cash burn rate of approximately $1.5-1.7 million per month on average.
A majority of this cash covers the cost of the core group of employees to be retained to secure new work and transition the shipyard into a compliant government contractor.
Download the quarterly report HERE