Philly Shipyard ASA reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported operating revenues and other income of USD 40.4 million as compared to USD 47.2 million a year ago. EBITDA was USD 0.2 million compared to EBITDA of USD 4.2 million a year ago. LBIT was USD 1.8 million compared to EBIT of USD 3.1 million a year ago. Loss before tax was USD 1.9 million compared to profit before tax of USD 2.7 million a year ago. Loss after tax was USD 2.0 million or USD 2.0 per basic and diluted share compared to profit after tax of USD 2.2 million or USD 0.18 per basic and diluted share a year ago. Adjusted LBITDA was USD 1.3 million compared to adjusted EBITDA of USD 14.3 million a year ago.

For the months, the company reported operating revenues and other income of USD 83.4 million as compared to USD 215.1 million a year ago. LBITDA was USD 1.1 million compared to EBITDA of USD 34.2 million a year ago. LBIT was USD 5.0 million compared to EBIT of USD 29.9 million a year ago. Loss before tax was USD 5.5 million compared to profit before tax of USD 30.8 million a year ago. Loss after tax was USD 5.6 million or USD 0.46 per basic and diluted share compared to profit after tax of USD 19.4 million or USD 1.60 per basic and diluted share a year ago. Net cash generated operating activities was USD 17.4 million compared to net cash used in operating activities of USD 32.4 million a year ago. Investment in property, plant and equipment was USD 1.8 million compared to USD 4.5 million a year ago. Adjusted LBITDA was USD 1.3 million compared to adjusted EBITDA of USD 14.3 million a year ago.

The company expects it will recognize revenues in 2018 only for the continued progress on the Matson project (Hulls 029-030) and potentially some initial progress on contracts for new vessel construction projects, if and
when secured. Philly Shipyard currently forecasts the Matson vessels to be a loss-making project. Further, Philly Shipyard expects that the combined margin in 2018 from the Matson project and any other possible project will
be insufficient to cover S,G&A and overhead costs not allocated to those same projects.