American Shipping Company - Third quarter 2018 results - American Shipping Company

American Shipping Company - Third quarter 2018 results

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Lysaker, 15 November 2018, American Shipping Company ASA ("AMSC" or the "Company") announces results for third quarter ending 30 September 2018.

HIGHLIGHTS

  • Stable Q3 bareboat revenue of USD 22.1 million and backlog of secured bareboat revenue of USD 160 million with average weighted tenor of 1.8 years
  • Normalized EBITDA for Q3 of USD 22.2 million
  • Adjusted net profit for Q3 of USD 2.4 million
  • Widening WTI Houston vs Bonny Light/Brent spreads leading to continued strong U.S. Northeast crude trade
  • Increased level of time charter fixtures at rates in the 50,000 - 55,000 range for modern tankers, despite somewhat reduced clean spot charter activity
  • Declared Q3 dividend of USD 0.08 per share, in line with previous guidance and backed by the Company's contracted cash flow

AMSC CEO, Pål Magnussen comments,"We are encouraged to see an increasing amount of time charter contracts in the Jones Act tanker market on the back of continued growing demand for moving domestic crude oil from the U.S. Gulf to the Northeast refineries. The price spread between WTI versus the Bonny Light and Brent crudes is a key driver for this development. This spread has remained in a favorable range for the past 12 months and charterers have now started to secure tonnage with longer commitments."

The full report is attached, along with the Q3 presentation.

Company contacts:

Pål Magnussen, Chief Executive Officer
+47 24 13 00 04

Morten Bakke, Chief Financial Officer
+47 24 13 00 87

Leigh Jaros, Business Controller / Finance Manager
+1484880 3741

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.