As the Delovoy Peterburg newspaper reported in Svetlana Afonina's article "Everything is further in the negative: the Northern Shipyard explained the reasons for the record loss," PJSC Shipbuilding Plant Severnaya Verf (part of JSC United Shipbuilding Corporation - USC) is unable to overcome financial problems. The company's net loss of 6.9 billion rubles in 2023 was a record for it.
The launching ceremony at PJSC Shipbuilding Plant Severnaya Verf (part of JSC United Shipbuilding Corporation) of the corvette Agile (factory number 1006) of project 20385, which is under construction for the Russian Navy. St. Petersburg, 06/18/2024 (c) Ministry of Defense of the Russian Federation
The financial performance of PJSC Shipbuilding Plant Severnaya Verf has been deteriorating over the past three years. So if in 2021 the company's revenue amounted to 30.97 billion rubles, then in 2022 it decreased to 24.06 billion, and in 2023 to 16.52 billion. In turn, PJSC's net loss increased: from 3.55 billion in 2021 to 5.89 billion in 2022 and to 6.93 billion in 2023, according to its annual report. We add that the value of PJSC's net assets at the end of 2023 had a negative value and was less than the size of its authorized capital.
The press service of the Northern Shipyard declined to comment. However, the assessment of the situation is given in the PAO report for 2023. Among the main reasons for the decrease in revenue at the enterprise are called "insufficient financing from the customer, which leads to the disruption of the planned terms of the contract and, as a result, entails the postponement of contractual deliveries and the performance of contractual work." In turn, the failure of the main suppliers to deliver equipment has an impact on the timing of construction, launching, commissioning and the release of orders for factory sea trials, the document also notes.
The increase in net loss was mainly influenced "by the receipt of losses from core business and losses of previous years identified in the current period, as well as the reflection of ... adjustments to the cost of the order based on the signed supplementary agreement to the contract," the report says.
Let's add: in January-March 2024, PJSC's revenue decreased to 2.6 billion rubles (from 3.2 billion in the first quarter of 2023), net loss decreased to 1.4 billion (2.1 billion a year earlier), according to its financial statements.
Probably, it will not be possible to improve the financial situation of the Northern Shipyard without the "parent" USC. Perhaps this was due to the decision of the shareholders to hold an additional issue in March 2024. Recall that the Northern Shipyard plans to place 3,145,655 shares by closed subscription at 8,069 rubles apiece. At the moment, the procedure has not been completed yet.
According to DP calculations, with the purchase of the entire volume of additional issue, the Northern Shipyard will attract 25.4 billion rubles. The shipyard did not inform what purposes these funds are planned to be used for. At the same time, it has at least two major modernization-related projects that may require investments. The first is the continuation of the construction of a boathouse, which the company needs to build ships and vessels of larger displacement. The previous three contractors failed to cope with this project, the readiness of the boathouse is estimated at 28%.
The construction of a metal floating dock will also continue, which is being conducted for the shipyard by the Astrakhan shipbuilding production association JSC "UCSS". The dock with a capacity of 25 thousand tons is designed for launching ships and vessels, as well as for lifting them out of the water for inspection and various works.
The Northern Shipyard's order portfolio currently includes 22 vessels and ships for the period up to 2027. In 2024, it is planned to deliver the Captain Geller processor trawler and the Marlin processor longline.
In February 2024, the powers of Igor Orlov, CEO of the Northern Shipyard, were prematurely terminated. At the moment, the company is headed by Mikhail Nenyukov.
