American Shipping Company ASA : Two New Multi-Year Bareboat Charters
Lysaker, Norway – 10 June 2022
American Shipping Company ASA (Oslo Stock Exchange: AMSC / OTCQX: ASCJF) is pleased to announce that it has entered into bareboat charters for two of its vessels commencing in December 2022 with Keystone Shipping Co. (Keystone), a premier U.S. tanker operator. The bareboat charters have minimum terms of three years which may be extended at the charterer’s options. The charters are secured by back-to-back time charters of the same duration between Keystone and a major U.S. based oil and refinery group. The new charters add almost USD 60 million to AMSC’s existing charter backlog, excluding any proceeds from the profit share component of the charters.
AMSC CEO Pål Lothe Magnussen commented, "We are pleased to have secured employment for these two vessels ahead of the expiration of their current charters at the end of this year. In doing so, we have increased our backlog and further ensured the visibility of our cash flows. Jones Act tanker capacity will remain constrained for the foreseeable future, and these charters are indicative of strong demand for our vessels. Chartering our vessels to a premium U.S. tanker operator like Keystone gives us a great deal of confidence that our vessels will be operated and maintained to the highest standards in order to serve U.S. oil companies’ transportation needs going forward.”
Keystone President Donald Kurz comments “Taking the two AMSC vessels on back-to-back bareboat charters will fall well within our strategy to operate ships in the domestic tanker trade. We are very happy to have concluded this bareboat transaction which allows us to service a key oil and refinery group in the U.S. Gulf.”
AMSC Company contacts:
Pål Magnussen, Chief Executive Officer +47 90 54 59 59
Morten Bakke, Chief Financial Officer +47 900 955 94
Leigh Jaros, Controller +1 484 880 3741
About American Shipping Company ASA:
Established in 2005 and listed on the Euronext Oslo Stock Exchange, AMSC is a ship owning company with nine modern handy size product tankers, one modern handy size shuttle tanker and one subsea construction vessel on bareboat charters with various counterparties. AMSC has a significant contract backlog, as well as profit sharing agreements with Overseas Shipholding Group, Inc and Keystone Shipping Co., 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.
About Keystone
Keystone is a U.S. shipowner and operator founded in Philadelphia in 1909. It has for over 100 years safely transported petroleum products to ports across the United States and presently manage more than 20 vessels in the domestic and international shipping sectors.
This information is considered to include inside information pursuant to the EU Market Abuse Regulation article 7 and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Leigh Jaros, Controller, American Shipping Company ASA, on June 10, 2022 at 17:30 CET