Highlights
- AMSC to invest USD 25 million for a 20% stake in Philly Tankers AS, alongside AKPS and a group of leading U.S. financial investors
- Philly Tankers to order two eco-design product tankers to be built at AKPS, with options for two additional vessels, to operate in the Jones Act market
- The investment confirms AMSC's stated strategy to pursue accretive growth opportunities in the Jones Act market
OSLO, NORWAY (10 June 2014) - Reference is made to stock exchange release on 14 March 2014, in which American Shipping Company ASA (OSE: AMSC) announced that it had entered into discussions with Aker Philadelphia Shipyard ASA (OSE: AKPS) regarding possible product tanker newbuilds
AMSC is pleased to announce that the Company has agreed to invest USD 25 million to help create Philly Tankers AS, alongside AKPS and a group of leading U.S. financial investors. Philly Tankers will be a pure play exposure to the Jones Act market with ownership of two eco-design product tanker newbuilds to be delivered by AKPS in Q4 2016 and Q1 2017 and with options for two additional newbuilds for delivery in Q3 and Q4 2017.
Philly Tankers will be listed on the Norwegian OTC by mid-July 2014, with a target of a U.S. listing by mid 2016. AMSC will hold an approximate 20% stake in the company and will have a seat on the Board of Philly Tankers.
"The surge in US shale oil production is continuing and AMSC believes that modern product tankers offer an attractive value proposition in this buoyant market," says Dag Wittusen, CEO of AMSC. "We think Philly Tankers is an interesting opportunity for AMSC considering the possibilities ahead. We are therefore delighted to be joining AKPS and leading U.S. financial investors who share our ambition of pursuing accretive growth opportunities in the Jones Act market".
Further information about Philly Tankers AS is provided in today's stock exchange announcement from AKPS.
The completion of AMSC's investment is conditional upon shareholder approval at an extraordinary general meeting to be held on or about 4 July 2014.
About American Shipping Company ASA:
AMSC is a shipowning company with ten modern handy size product tankers on long term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the vessels out on time charters to major oil companies in the U.S. coastwise Jones Act trade. AMSC has a significant contract backlog as well as a profit sharing agreement with OSG which offers visibility with respect to future earnings and potential dividend capacity. The Company has an ambition to pay attractive and growing dividends to its shareholders.
Contacts at American Shipping Company ASA:
Dag Fasmer Wittusen, CEO
Oslo, Norway
Tel: +47 916 300 02
Pål Magnussen, CFO
Oslo, Norway
Tel: +47 905 45 959
Leigh Jaros, Business Controller/Finance Manager
Pennsylvania, USA
Tel: +1 (484) 880- 3741