Aker Philly reports profitable first quarter

Written by Nick Blenkey
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MAY 7, 2015 — In its first quarter 2015 results, Aker Philadelphia Shipyard (OSE: AKPS) reported EBITDA of $6.9 million compared to $ 24.7 million in first quarter 2014 when adjusted EBITDA included a one-time gain on the sale of the profit sharing interests in Hulls 017 and 018 to Crowley.

The company says it is increasing its rate of production and that it sees the fundamental outlook for Jones Act tanker shipping as remaining firm based on several market transactions during the first quarter — notably, in February, Philly Tankers announced it entered into binding long-term charter contracts with a domestic end-user for its two 50,000 dwt product tankers under contract with the shipyard.

Highlights of the shipbuilder’s first quarter 2015 included:

  • Finalized a new four-year collective bargaining agreement with the Philadelphia Metal Trades Council on February 3, 2015
  • Philly Tankers announced the long-term charter of its two 50,000 dwt product tankers under contract with AKPS (Hulls 025-026) on February 26, 2015
  • The AKPS-Crowley joint venture announced that it had received a commitment for a $325 million facility for post-delivery financing of its four 50,000 dwt product tankers under contract with AKPS (Hulls 021-024) on March 12, 2015
  • Delivered Hull 020, the second and last aframax vessel for SeaRiver, on March 13, 2015
  • Executed definitive documentation for previously announced $60.0 million secured term loan through the Welcome Fund loan program on March 16, 2015
  • Total cash and cash equivalents of $65.0 million at March 31,2015, including USD 7.0 million of restricted cash related to the SeaRiver contract
  • Order backlog of $939.0 million on 31 March 2015 with last delivery in December 2018Q4 2014 quarterly dividend paid totaling USD 3.0 million


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