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Philly Shipyard AGM Information 2020
3713_rns_2020-04-22_6b88a8d8-0c6d-4555-8514-6c1881c42797.pdf
AGM Information
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Annual General Meeting
Philly Shipyard ASA
Oslo, 22 April 2020
Agenda
- Opening of the annual general meeting, including approval of the notice and agenda.
- Election of a person to co-sign meeting minutes along with the meeting chair.
- Presentation of business activities (non-voting).
- Approval of the 2019 annual accounts of Philly Shipyard ASA, group consolidated accounts and the Board of Directors' report.
- Consideration of the Board of Directors' declaration regarding stipulation of salary and other remuneration to the executive management of the Company.
- Consideration of the statement of corporate governance (non-voting).
- Stipulation of remuneration to the members of the Board of Directors and the Audit Committee.
- Stipulation of remuneration to the members of the Nomination Committee.
- Approval of remuneration to the auditor for 2019.
- Election of members to the Board of Directors.
- Election of members to the Nomination Committee.
- Amendment of the articles of association.
- Authorization to the Board of Directors for payment of dividends.
- Authorization to the Board of Directors to acquire own shares in connection with acquisitions, mergers, de-mergers or other transactions.
- Authorization to the Board of Directors to acquire own shares for the purpose of investment or subsequent sale or deletion of such shares.
- Authorization to the Board of Directors to increase the share capital in connection with new shipbuilding projects or other future investments within the Company's scope of operations.
Philly Shipyard
Presentation of Business Activities
Philly Shipyard ASA
Company Overview
A leading U.S. shipbuilder that utilizes state-of-the-art shipbuilding facilities and practices, that is presently pursuing a mix of commercial and government work
- Company: PHLY is the most modern shipyard focused in the U.S. Jones Act market that is presently pursuing a mix of commercial and government work
- Products: PHLY builds ocean-going tankers ranging in size from 46,000-115,000 dwt and containerships. The yard has the capabilities and infrastructure to build a variety of vessels
- Facility: PHLY’s shipyard was completely rebuilt in 1998 and has been optimally designed to support commercial shipbuilding operations; over USD 650M invested through a public private partnership
- Processes: The yard utilizes modular construction, automated fabrication systems and outsourcing to enhance productivity
- Partners: Relationships with Hyundai Mipo Dockyards, KOMAC, SM SOLUTION, and DSEC
- Order book: Completed Matson Hull 030 March 2019, awarded two (2) National Security Multi-Mission Vessels (NSMV) April 8, 2020.
- Ownership: Aker Capital AS owns 57.6% of the company, which is listed on the Oslo Stock Exchange
Modern Shipyard
Tankers
Commercial Vessels
Container Ships
Philly Shipyard
Summary of Philly Shipyard 2019 Main Events
- Negotiated a temporary conditional waiver of the minimum employment condition under the shipyard lease
- A new four-year collective bargaining agreement was ratified by the Philadelphia Metal Trades Council (PMTC) in February
- Received a liquidating distribution totaling USD 44.6 million from Philly Tankers in February
- Delivered the second vessel (Hull 030) in the two-containership order for Matson in March
- Idled its facilities and reduced its workforce due to the lack of an order backlog
- Awarded a prime contract in May to conduct industry studies for the Common Hull Auxiliary Multi-Mission Platform (CHAMP) program for the U.S. Navy
Philly Shipyard
Summary of Philly Shipyard 2019 Main Events
- Awarded a contract in July to perform modernization, repair and maintenance work on the FSS Antares, a government cargo ship, which was redelivered to the customer in December
- Submitted a proposal for the National Security Multi-Mission Vessel (NSMV) program for the U.S. Maritime Administration
- Awarded a contract in October to perform modernization, repair and maintenance work on the FSS Pollux, a sister-ship to the FSS Antares
- EBITDA was negative USD 17.3 million in 2019, compared to negative 15.8 million in 2018
- Focused on controlling costs and preserving cash while readying itself for potential new ship orders; total cash and cash equivalents of USD 50.7 million at 31 December 2019, excluding USD 66.5 million of restricted cash
- Philly Shipyard did not record a single lost time incident in 2019
Philly Shipyard
Largest containership ever built in the U.S. – Hull 030 – the Kaimana Hila
Philly Shipyard
Hull 030 Delivery ceremony | March 2019
Philly Shipyard
Summary of Philly Shipyard 2019 Main Events - Subsequent Event
- Awarded a subcontract for two (2) National Security Multi-Mission Vessels (NSMV) from TOTE Services, LLC with ownership by the US Department of Transportation – Maritime Administration.
Philly Shipyard
Presentation of Financial Statements
Philly Shipyard ASA
Consolidated Income Statement
| Amounts in USD thousands (except per share amounts) | 2019 | 2018 |
|---|---|---|
| Operating revenues | 28,207 | 129,737 |
| Other loss | - | (523) |
| Operating revenues and other loss | 28,207 | 129,214 |
| Cost of vessels sold | (26,031) | (126,560) |
| Wages and other personnel expenses | (2,318) | (1,927) |
| Other operating expenses | (17,170) | (16,544) |
| Operating loss before depr. and impairment (EBITDA) | (17,312) | (15,817) |
| Depreciation | (7,056) | (7,830) |
| Reversal of impairment of assets /(impairment of assets) | 3,077 | (17,601) |
| Operating loss before interest interest & taxes (EBIT) | (21,291) | (41,248) |
| Financial income | 2,131 | 1,524 |
| Financial expenses | (2,021) | (2,084) |
| Loss before tax | (21,181) | (41,808) |
| Income tax benefit/(expense) | 969 | (2,291) |
| Loss after tax | (20,212) | (44,099) |
| Basic loss per share (USD) | (1.67) | (3.64) |
Philly Shipyard
Consolidated Statement of Financial Position Assets
| Amounts in USD thousands | 2019 | 2018 |
|---|---|---|
| ASSETS | ||
| Property, plant and equipment | 26,104 | 44,084 |
| Right-of-use asset | 13,035 | - |
| Restricted cash non-current | - | 44,616 |
| Equity-accounted investments | - | 44,641 |
| Other non-current assets | 234 | 231 |
| Total non-current assets | 39,373 | 133,572 |
| Prepayments and other receivables | 3,502 | 3,534 |
| Income tax receivable | 166 | 3,262 |
| Contract asset | 1,608 | - |
| Restricted cash current | 66,475 | - |
| Cash and cash equivalents | 50,673 | 49,624 |
| Total current assets | 122,424 | 56,420 |
| Total assets | 161,797 | 189,992 |
Philly Shipyard
Consolidated Statement of Financial Position Equity & Liabilities
| Amounts in USD thousands | 2019 | 2018 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Paid in capital | 35,206 | 35,206 |
| Other equity | 56,060 | 76,272 |
| Total equity attributable to equity holders of parent co. | 91,266 | 111,478 |
| Total equity | 91,266 | 111,478 |
| Welcome Fund loan, non-current | - | 59,639 |
| Deferred tax liability | 2,193 | 1,500 |
| Total non-current liabilities | 2,193 | 61,139 |
| Trade payables and accrued liabilities | 6,255 | 15,042 |
| Other provisions - warranties | 2,137 | 945 |
| Customer advances, net | - | 1,218 |
| Income tax payable | 18 | 170 |
| Welcome Fund loan, current | 59,928 | - |
| Total current liabilities | 68,338 | 17,375 |
| Total liabilities | 70,531 | 78,514 |
| Total equity and liabilities | 161,797 | 189,992 |
Philly Shipyard
Philly Shipyard ASA Income Statement
| Amounts in USD thousands | 2019 | 2018 |
|---|---|---|
| Operating revenues | - | - |
| Operating expenses | (571) | (463) |
| Operating loss | (571) | (463) |
| Interest income from subsidiaries | 1,699 | 1,637 |
| Interest expense to subsidiaries | (2,231) | (2,230) |
| Other interest income and financial income | 423 | 1,767 |
| Other interest expense and financial expense | (14) | (52) |
| (Loss)/income before tax | (694) | 659 |
| Income tax benefit | 205 | 167 |
| Net (loss)/income after tax | (489) | 826 |
| Allocation of net (loss)/income: | ||
| Net (loss)/income after tax | (489) | 826 |
| Other equity | 489 | (826) |
| Total | - | - |
Philly Shipyard
Philly Shipyard ASA
Statement of Financial Position
| Amounts in USD thousands | 2019 | 2018 |
|---|---|---|
| ASSETS: | ||
| Shares in subsidiary | 67,000 | 67,000 |
| Loan to subsidiary | 31,000 | 31,000 |
| Total non-current assets | 98,000 | 98,000 |
| Cash and cash equivalents | 1,505 | 2,721 |
| Prepayments & other receivables | 44 | 38 |
| Total current assets | 1,549 | 2,759 |
| Total assets | 99,549 | 100,759 |
| Amounts in USD thousands | 2019 | 2018 |
| --- | --- | --- |
| EQUITY AND LIABILITIES: | ||
| Share capital | 22,664 | 22,664 |
| Share premium reserve | 12,542 | 12,542 |
| Total paid in capital | 35,206 | 35,206 |
| Other equity | 8,761 | 9,250 |
| Total equity | 43,967 | 44,456 |
| Deferred tax liability | 205 | 415 |
| Loan from subsidiary | 55,000 | 55,562 |
| Total non-current liabilities | 55,205 | 55,977 |
| Income tax payable | - | 170 |
| Trade payables & accrued liabs. | 377 | 156 |
| Total current liabilities | 377 | 326 |
| Total equity and liabilities | 99,549 | 100,759 |
Philly
Shipyard
Auditor’s Report 2019
KPMG AS
Gunnar Sotnakk, State Authorized Public Accountant
Philly Shipyard
Consideration of the Board of Directors' declaration regarding stipulation of salary and other remuneration to executive management of the Company
The General Meeting supports the Board of Directors' statement regarding establishment of salary and other benefits for the executive management pursuant to the Public Limited Liability Companies Act section 6-16a.
Philly Shipyard
Corporate Governance Report 2019
Philly Shipyard ASA's corporate governance report is presented on pages 62-65 of the 2019 annual report.
Philly Shipyard
Proposal from the Nomination Committee of remuneration to the members of the Board of Directors, the Audit Committee and the Nomination Committee
Board of Directors
> Board chairperson NOK 475 000
> Board members NOK 375 000
> Audit committee chairperson NOK 55 000
> Audit committee members NOK 45 000
Nomination Committee
> Chairman and members NOK 34 000
Philly Shipyard
Approval of remuneration to the auditor for 2019
The remuneration to the auditor of USD 38,000 ex.-VAT for the audit of the Company's 2019 annual accounts is approved. The Group has not paid any fees to KPMG for services other than audit.
Philly Shipyard
Board composition
Kristian Rokke
Chairman
Amy E.
Humphreys
Deputy
Chairperson
Elin Karfjell
Philly Shipyard
Nomination committee composition
Leif-Arne Langøy (chairman)
Ove A. Taklo
华
Philly Shipyard
Board authorizations
- Authorization to the Board of Directors for payment of dividends.
- Authorization to the Board of Directors to purchase own shares in connection with acquisitions, mergers, de-mergers or other transactions.
- Authorization to the Board of Directors to purchase own shares for the purpose of investment or subsequent sale or deletion of such shares.
- Authorization to the Board of Directors to increase the share capital for new shipbuilding projects or other future investments within the Company’s scope of operations.
Philly Shipyard
Disclaimer
This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Philly Shipyard ASA and Philly Shipyard ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Philly Shipyard's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Philly Shipyard ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Philly Shipyard ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Philly Shipyard ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
The Philly Shipyard group consists of many legally independent entities, constituting their own separate identities. Philly Shipyard is used as the common brand or trade mark for most of this entities. In this presentation we may sometimes use "the Company", "Philly Shipyard", "Group, "we" or "us" when we refer to Philly Shipyard companies in general or where no useful purpose is served by identifying any particular Philly Shipyard company.
Philly Shipyard
Philly Shipyard