2022-04-17 | EXPM:AKRRF | Press release


Philly Shipyard, Inc. (PSI), the sole operating subsidiary of Philly Shipyard ASA (XOAX: PHLY), today announced U.S. Department of Transportation Maritime Administration (MARAD) clearance and subsequent order of TOTE Services, LLC (TOTE Services) for the construction of an additional National Security Multi-Mission Vessel (NSMV) – marking the fifth and final NSMV in the series of training vessels. This modern ship will replace the aging training ship at California State University Maritime Academy in Vallejo, California.

Construction of the new vessel (NSMV 5) is expected to begin in 2023. The contractual delivery date for NSMV 5 is set for 2026.

PHILADELPHIA, PA /ACCESSWIRE/April 17, 2022/ The order was placed under the April 2020 contract with TOTE Services, which allows for the construction of up to five NSMVs. The initial allocation included the first two ships of the NSMV program (NSMV 1 and 2). The next two ships in the NSMV program (NSMV 3 and 4) were ordered in January 2021.

Today’s price for NSMV 5 is valued at approximately $300 million, bringing total orders under the contract for the five-ship program to approximately $1.5 billion.

As announced in November 2021, PSI’s backlog also includes a contract from Great Lakes Dredge & Dock Company, LLC to build a Jones Act-compliant Undersea Rock Installation Vessel (SRIV), d a contract value of approximately $200 million. The SRIV will be built between NSMV 4 and 5.

“This is truly a great day for Philly Shipyard as we are now responsible for building the full series of the NSMV program – a physical symbol of MARAD’s investment in the future of maritime education and training. “said Steinar Nerbovik, president and CEO of Philly. Shipyard. “The NSMV program continues to mark a turning point in the transformation of our business to serve both commercial and government markets.”

Mr. Nerbovik continued: “I would like to thank TOTE Services and MARAD for their continued support. This award brings our order book to six vessels, including five NSMVs and one SRIV. Together with our union partners, staff and supplier network, our current backlog confirms that shipbuilding is here to stay in Philadelphia.”

The NSMVs will be owned by MARAD, which developed the initial concept for the design. The construction of the NSMVs will not require any third-party funding.

The keel laying of NSMV 1 took place in December 2021 and the full start of production of NSMV 2 took place in November 2021 according to plan. Pre-production activities on NSMV 3 and 4 and SRIV 1 are ongoing.

The contract for the NSMV program has allowed Philly Shipyard to replenish its workforce as production increases. Philly Shipyard’s total workforce is currently around 1,200. Philly Shipyard operations are expected to reach full capacity in mid-2022.

About the NSMV Program

The NSMV will help maintain world-class American maritime training operations at state maritime academies by equipping young American sailors with the most modern and adaptable training platform. The NSMV will include numerous training spaces and a comprehensive training deck that can accommodate up to 600 cadets to train in a top-notch maritime academic environment at sea. Approximately 70% of all new officers graduate each year by State Maritime Academies – merchant seamen who help keep cargo and the economy running smoothly. Many also support US national security by equipping military sealift vessels.

In addition to serving as an education and training platform, the NSMV will also be available to uniquely support federal government efforts in response to domestic and international disasters such as hurricanes and earthquakes. In this role as a National Defense Reserve Fleet ship, the NSMV will integrate medical capabilities, a command and control platform and will be able to accommodate up to 1,000 first responders and recovery workers. The ship’s roll-on/roll-off ramp and crane to facilitate container storage capabilities will allow it to deliver critical support equipment and supplies to those in need.

About Philly Shipyard

Philly Shipyard, Inc. (PSI) is a leading US shipbuilder currently pursuing a mix of commercial and government work. It has a state-of-the-art shipbuilding facility and has established a reputation as a preferred supplier of ocean-going merchant vessels with a reputation for delivering quality vessels, having delivered approximately 50% of all major Jones ocean-going commercial vessels Act since 2000. PSI is the sole operating subsidiary of Philly Shipyard ASA. Philly Shipyard ASA is listed on the Oslo Stock Exchange (XOAX: PHLY) and is majority owned by Aker Capital AS, which in turn is 100% owned by Aker ASA (Aker). Aker is an industrial investment firm that exercises active ownership to create value. Aker has interests in oil and gas, renewable energy and green technologies, maritime assets, marine biotechnology and industrial software, and its portfolio includes companies such as Aker BP, Aker Horizons, Aker BioMarine, Cognite and Aker Solutions.

For more information about Philly Shipyard, please visit www.phillyshipyard.com.

matt cassidy

Communications Supervisor

215-275-8863

[email protected]

This information is subject to the disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Act.

THE SOURCE: Philly Shipyard ASA

See the source version on accesswire.com:

https://www.accesswire.com/697770/Philly-Shipyard-Awarded-Fifth-NSMV

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