Recession dims Philly prospects
US BUILDER Aker Philadelphia Shipyard has suffered currency-induced losses and could face challenges securing new orders after the completion of the OSG product tanker series.
Today, the yard posted $600,000 in losses for 4Q08, versus net income of $5.5M in 4Q07. The result was primarily attributed to the strengthening US dollar, which had an impact on NOK cash deposits and currency contracts.
Aker Philadelphia lost $1.8M in full-year 2008, versus net income of $3.9M in 2007.
The builder has just delivered its sixth product tanker in the 12-ship series chartered by OSG, with the final tanker due for delivery in 1Q11.
“A key focus for 2009 is securing new orders to expand the backlog,” the yard said in a statement, affirming that “shuttle tankers and containerships remain important prospects”.
But Aker Philly conceded that the outlook had worsened. “The current global economic crisis has created uncertainties which may delay the decision-making process for newbuilds and has created difficulties regarding financing of newbuild projects,” the builder warned.
The yard added that it “continues to monitor and assess its vendors, financing and partners closely”.