The Northern Shipyard, part of the United Shipbuilding Corporation (USC), concluded 2024 with a record loss of 7.464 billion rubles, marking a significant downturn from a profit of 173 million rubles in 2020. Despite a 58% increase in revenue from 16.5 billion rubles in 2023 to 26.1 billion rubles in 2024, the shipyard faced escalating losses attributed to underutilization, poor initial design documentation, project modifications during construction, inconsistent financing from clients, and delays from key suppliers impacting delivery schedules. In 2024, the termination of contracts for three fishing vessels of Project 170701 resulted in a 399 million ruble loss. The enterprise’s debt burden rose significantly, with long-term loans reaching 106.7 billion rubles and short-term loans surging to 26 billion rubles, a 15-fold increase. To address these challenges, the shipyard is implementing a cost management program and optimizing production processes, with projections suggesting a return to break-even in 2025, contingent upon modernization, revising state contract prices, and securing contracts for new naval projects. This strategic turnaround is essential for the yard’s viability and its capacity to regain profitability by 2029, emphasizing the need for robust operational adjustments amidst a challenging fiscal landscape.
