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American Shipping Company ASA – AMERICAN SHIPPING COMPANY ASA – UPDATE REGARDING CHARTER EXTENSIONS

10/12/2021

Lysaker, Norway – 10 December 2021 – American Shipping Company ASA (AMSC) today announced that Overseas Shipholding Group (OSG) has declared its options to extend the bareboat charter agreements for two vessels currently under charter from AMSC to OSG by one year, moving the new bareboat expiry date to December 2023. In addition, OSG has provided notice not to extend the bareboat agreements for three vessels.  These vessels will remain contracted with associated cash flows from OSG until the present charters expire in December 2022. Upon charter expirations and vessel redeliveries, the deferred payment obligations related to these three contracts of approximately USD 12 million will fall due and become immediately payable by OSG to AMSC.

AMSC’s bareboat contract coverage is as follows:      

   

Vessel Firm contract until OSG’s extension options
OVERSEAS LOS ANGELES Dec 2022 None
OVERSEAS NEW YORK Dec 2022 None
OVERSEAS TEXAS CITY Dec 2022 None
OVERSEAS HOUSTON Dec 2023 Unlimited 3 or 5 years
OVERSEAS LONG BEACH Dec 2023 Unlimited 3 or 5 years
OVERSEAS BOSTON Dec 2023 Unlimited 3 or 5 years
OVERSEAS NIKISKI Dec 2023 Unlimited 3 or 5 years
OVERSEAS MARTINEZ Dec 2023 Unlimited 3 or 5 years
OVERSEAS ANACORTES Dec 2023 Unlimited 3 or 5 years
OVERSEAS TAMPA June 2025 2 x 5 years followed by 5 x 1 year

     

AMSC remains current on all financial covenants and other loan terms, which will not change due to OSG’s decision not to extend three of the bareboat contracts. AMSC’s cash flow profile will remain unchanged for the next 12 months while management works toward rechartering or developing other business opportunities for the three vessels.

AMSC CEO Pål Lothe Magnussen commented, “We are excited about the opportunity to develop new business for the three vessels which will be returned to us in December 2022. The Jones Act tanker market has recently shown increased chartering activity, and the long-term fundamentals remain attractive with negative fleet growth and no newbuilds likely to enter the market for many years ahead.  We are looking forward to working with the wider Jones Act tanker community to capitalize on opportunities in a recovering Jones Act tanker market.”

About American Shipping Company ASA:

Established in 2005 and listed on the Oslo Stock Exchange, AMSC is a ship owning company with nine modern handy size product tankers and one modern handy size shuttle tanker 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 dividends to its shareholders. Further information is available at www.americanshippingco.com.

Company Contacts:

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

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

Leigh Jaros, Financial Controller +1 484 880 3741

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