American Shipping Company ASA - Fourth quarter financial results

Lysaker, 28 February 2020, American Shipping Company ASA (“AMSC” or the “Company”) announces results for fourth quarter ending 31 December 2019.

HIGHLIGHTS

• Overseas Shipholding Group (“OSG”) exercised one of its perpetual 3 year extension options for the bareboat charter agreements for four of AMSC’s vessels, moving these charter expiries to December 2023
• Secured firm commitments from lenders to refinance the current bank debt facilities on 9 of our vessels at attractive and improved terms
• Stable Q4 bareboat revenue of USD 22.1 million, normalized EBITDA of USD 22.2 million and adjusted net profit of USD 2.4 million
• Backlog of secured bareboat revenue of USD 322.3 million with average weighted tenor of 3.7 years
• Declared Q4 dividend of USD 0.08 per share, in line with previous guidance and backed by the Company’s contracted cash flow

AMSC CEO, Pål Lothe Magnussen comments, “We are pleased to announce that we have secured firm commitments from lenders to refinance the majority of our current outstanding bank debt. The new debt comes with improved terms, including a USD70 million revolving credit facility, reflecting the infrastructure characteristics of our business. The bank debt refinancing makes us well positioned to address a refinancing of the USD220m senior unsecured bond, which should further reduce cost of capital and increase dividend capacity going forward. Last quarter also included the much anticipated bareboat charter extension by OSG for four of our vessels, a reflection of the strong and improving market for Jones Act tankers.”

The full report is attached, along with the Q4 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

+1 484 880 3741

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