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.