Fourth quarter 2007 - Aker Philadelphia Shipyard Inc. (APSI) was successfully sold by Aker American Shipping ASA (AKASA) to new and existing investors at the high end of the book building range and subsequently listed as a separate entity on Oslo Axess December 17th 2007 as Aker Philadelphia Shipyard ASA (AKPS). AKPS was valued at approximately USD 107 million. AKASA received approximately USD 80 million and AKPS received approximately USD 27 million.
As previously reported, the split of Aker American Shipping's shipbuilding and ship owing activities was completed December 5th 2007. AKPS was subsenquently listed on Oslo Axess with its first day oof trading being December 17, 2007.
On October 2nd, Aker Philadelphia Shipyard strengthened its partnership with Aker American Shipping, Inc. by signing definitive agreements to build two additional double-hull Veteran MT-46 Jones Act Tankers that will later be converted to shuttle tankers. This increased the firm new-build order from Aker American Shipping Inc. to twelve tankers and the shipyard's backlog to early 2011.
In connection with the split, the two companies entered into new construction agreements amending the terms for the delivery of the nine remaining tankers out of the twelve currently under contract. The fixed purchase price for these nine vessels will be USD 104 million subject to escalation in material cost for tankers 6-12.
Additionally, on October 30th, Aker Philadelphia Shipyard entered into an option agreement for 13 additional vessels with Aker American Shipping. The option ships are for the double-hull Veteran MT-46 Jones Act tanker design which is the identical ship which Aker Philadelphia Shipyard is currently building for Aker American Shipping. However, they can be modified to allow for deployment as shuttle tankers or chemical tankers. The base purchase price for each of the option vessels is USD 100. The base purchase price is subject to escalation for material escalation (as noted previously) and Consumer Price Index increases on certain costs as defined in the agreements. If all of the options are exercised, Aker Philadelphia Shipyard's backlog would extend to July 2015.
Aker Philadelphia Shipyard had a positive EBITDA result of USD 9.2 million in the fourth quarter. For the full year 2007, the EBITDA result was USD 13.0 million.
Operating revenues for Q4 2007 were USD 83.4 million and USD 264.1 million for the full year. In accordance with IFRS accounting rules Aker Philadelphia Shipyard is recognizing the remaining nine tankers to be built as one single project. As such, revenue and expense will be recognized on a global project basis. As of December 31, 2007 Aker Philadelphia Shipyard is approximately 18% complete with the project. Fourth quarter results are higher than prior quarter results due to the change in accounting noted above and are not indicative of future quarters results.
For 2007, the net result was USD 3.9 million compared to a net result of USD 1.1 million in 2006.
Enclosed please find the Q4 2007 report and presentation.
