Philly Shipyard ASA Reports Q3 2024 Earnings

Philly Shipyard ASA ( (AKRRF) ) has released its Q3 earnings. Here is a breakdown of the information Philly Shipyard ASA presented to its investors.

Philly Shipyard ASA, a Norwegian company, is a prominent player in the shipbuilding industry, specializing in constructing vessels for both commercial and government sectors. The company is known for its innovative approach to shipbuilding and commitment to sustainability.

In its latest earnings report for Q3 2024 and the first nine months of the year, Philly Shipyard ASA highlighted several key achievements, including the successful delivery of the second National Security Multi-Mission Vessel (NSMV) and the commencement of steel cutting for a new containership vessel for Matson. Despite these milestones, the company reported a challenging financial performance with a significant net loss.

The company recorded operating revenues of USD 115.2 million for Q3 2024, an increase from the previous year. However, EBITDA was negative USD 45.5 million, reflecting increased costs associated with ongoing projects. The net loss for the same period stood at USD 47.0 million, driven by higher costs and project challenges. Philly Shipyard also secured several grants to support its operations, including a USD 6.0 million grant for expansion.

Philly Shipyard continues to face financial and operational hurdles, including losses from its NSMV and SRIV projects. The company has a strong order backlog of USD 1,408.0 million but anticipates the need for interim funding in 2025. It is actively seeking new opportunities in both government and commercial shipbuilding markets to bolster its future pipeline.

Looking forward, Philly Shipyard’s management is focused on improving operational efficiencies and securing additional projects to enhance profitability. The company remains committed to leveraging its innovative shipbuilding models to capture new opportunities and address its current financial challenges.