AMSC ASA — Interim / Quarterly Report 2015

Feb 17, 2016

AMERICAN SHIPPING COMPANY ASA

Fourth Quarter 2015 Report

Fourth Quarter 2015 Report

Oslo, 17 February 2016, American Shipping Company ASA ("AMSC or the "Company") announces results for fourth quarter ending 31 December 2015.

HIGHLIGHTS

• Declared Q4 dividend of USD 0.107 per share, approximately 4% higher than the previous quarter, which $\bullet$ equates to an annualized dividend yield of 14.8% p.a. based on the share price as of 16 February 2016
• Reiterate guiding on approximately 15% year on year dividend growth for 2016
• Normalized EBITDA for Q4 of MUSD 26.3
• Q4 profit share of MUSD 3.4, which reduces the profit share overhang
• First quarter with full cash effect from DPO, totaling MUSD 1.0 in Q4 2015, see note 12 for details
• Backlog of secured bareboat revenue of MUSD 402 with average weighted tenor of 4.6 years
• MUSD 450 bank debt refinancing successfully closed

MAIN EVENTS DURING THE FOURTH QUARTER AND SUBSEQUENT TO QUARTER END

• Dividends: On 28 October 2015, the Board authorized a quarterly dividend payment of USD 0.103 per share, to the shareholders of AMSC on record as of 5 November 2015, which was paid on 13 November 2015, equaling NOK 0.88 per share.

On 16 February 2016, the Board authorized a quarterly dividend payment of USD 0.107 per share to the shareholders of AMSC on record as of 24 February 2016. The shares in AMSC will be traded ex. dividend from and including 23 February and will be paid on or about 3 March 2016. The dividend is classified as a return of paid in capital.

Dividends per share expected to grow as follows: Q1 2016 USD 0.107 (maximum allowed). Total dividend for 2016 is expected to grow approximately 15% compared to 2015.

Normalized EBITDA: Base bareboat revenue of MUSD 22.1 plus Profit share of MUSD 3.4, plus DPO of MUSD 1.0 less SG&A of MUSD 0.2 totaled MUSD 26.3 for Q4 2015.

• Bank debt refinancing: The Company closed the MUSD 450 refinancing of the secured vessel debt. The refinancing is structured in two separate facilities; one being a MUSD 300 facility secured by eight vessels and the other a MUSD 150 facility secured by two vessels. On a combined basis, key terms are as follows:
• Total amount: MUSD 450
• Average weighted tenor: 6 years (80% of the loan amount with 5 year tenor and 20% with a 10 year tenor)
• Average weighted interest cost: Libor + 325 bps margin
• Total annual installments: Year 1: MUSD 8.3, Year 2-4: MUSD 28.3, Year 5: MUSD 44.3 (the Company expects to refinance after year 4)

The Company has entered into mandatory interest rate swaps for MUSD 210 of the new secured debt.

In connection with the bank debt refinancing, the Company has agreed with the holders of its unsecured bond that the cash interest element will increase from 50% to 100% from time of funding of the bank debt refinancing which occurred in 4Q 2015 and that the Company will not use its option to extend the bond beyond the final maturity date in February 2018.

As part of the refinancing, the Company has entered into a MUSD 20 subordinated loan with Aker ASA. The loan is expected to be repaid with proceeds from the eventual sale of the interest in Philly Tankers AS.

Philly Tankers: In 3Q 2015, Philly Tankers AS agreed to sell its four product tanker contracts to a subsidiary of Kinder Morgan, Inc. with the assignment to take place immediately before delivery of each ship. Deliveries are scheduled from Q4 2016 through Q4 2017.

AMSC is in ongoing discussions to sell its 25,000 shares in Philly Tankers. The cost price of AMSC's shares in Philly Tankers AS is MUSD 25.

• Profit share: Q4 profit share of MUSD 3.4, which reduces the profit share overhang. See Note 11 for more detailed information.
• Deferred Payment Obligation (DPO): Q4 2015 was the first quarter with no DPO accruals, and with full cash effect from DPO payments from OSG representing MUSD 1.0 for Q4. Going forward, DPO repayments and interest will provide substantial cash flow to AMSC over the next 18 years. In 2016, AMSC expects to receive approximately MUSD 3.9 of DPO- related payments. See note 12 for further information.
• New CFO: In February 2016, the Company announced the appointment of Morten Bakke as new Chief $\bullet$ Financial Officer (CFO) of AMSC, with effect from 1 May 2016.

FOURTH QUARTER FINANCIAL REVIEW

Fourth quarter results

AMSC's operating revenues for Q4 2015 and 2014 were MUSD 22.1 each. EBITDA was MUSD 21.9 in Q4 2015 (MUSD 22.0 in Q4 2014). EBIT was MUSD 12.8 in Q4 2015 and MUSD 13.5 in Q4 2014.

Net interest expense (interest expense less interest income) for Q4 2015 was MUSD 10.3 (MUSD 12.9 in Q4 2014).

Net foreign exchange loss was MUSD 0 in Q4 2015 (MUSD 0.8 in Q4 2014), resulting from the translation of Norwegian kroner (NOK) cash balances into USD.

In Q4 2015, AMSC had an unrealized loss of MUSD 1.0 on the mark-to-market valuation of its interest rate swap contracts related to its vessel financing (gain of MUSD 4.3 in Q4 2014).

AMSC had a net profit before tax for Q4 2015 of MUSD 1.5 versus MUSD 4.1 in Q4 2014.

Full year results

AMSC's operating revenues for the full year 2015 and 2014 were MUSD 87.8 and MUSD 87.6. respectively. EBITDA for the full year 2015 and 2014 was MUSD 84.9 and MUSD 84.5, respectively. EBIT for the full year 2015 and 2014 was MUSD 50.7 and MUSD 50.6, respectively. Net interest expense of MUSD 48.9, net unrealized foreign exchange loss of MUSD 0.2 and unrealized gain on interest swaps of MUSD 12.5 are included in net financial items for 2015. Figures for the same period in 2014 include net interest expense of MUSD 51.9, net unrealized foreign exchange loss of MUSD 5.1, unrealized gain on interest swaps of MUSD 20.1 and unrealized gain from the de-recognition of the bond of MUSD 9.5. Net profit before tax for the full year 2015 and 2014 was MUSD 14.1 and MUSD 23.3, respectively.

	unaudited
	Q4 Q4 Full year
Amounts in USD million (except share and per share information)	2015	2014	2015	2014
Operating revenues	22.1	22.1	87.8	87.6
Operating profit before depreciation - EBITDA	21.9	22.0	84.9	84.5
Operating profit - EBIT	12.8	13.5	50.7	50.6
Gain on de-recognition of bond	$\overline{\phantom{0}}$			9.5
Net interest expense	(10.3)	(12.9)	(48.9)	(51.9)
Unrealized gain on interest swaps	(1.0)	4.3	12.5	20.1
Net foreign exchange gain/(loss)	۰	(0.8)	(0.2)	(5.1)
Profit/(loss) before income tax	1.5	4.1	14.1	23.3
Net profit/(loss) for the period *	2.1	3.8	14.7	23.0
Average number of common shares **	60,616,505	60,616,505	60,616,505	60,205,903
Earnings/(loss) per share (USD)	0.04	0.06	0.24	0.38

Condensed Income Statement

* Applicable to common stockholders of the parent company.

** During Q1 2014, 33 million shares were issued and the number of shares shown above reflects the weighted average number of shares for the full year 2014. Refer to note 7 to the condensed consolidated financial statements for further details.

Condensed Statement of Financial Position

	unaudited
	31-Dec	31-Dec
Amounts in USD million	2015	2014
Vessels	813.8	848.0
Deferred tax assets	2.0
Interest-bearing long term receivables (DPO)	32.6	33.2
Other non current assets	24.9	24.9
Trade and other receivables	0.4	0.3
Cash held for specified uses	1.6	8.1
Cash and cash equivalents	31.7	85.2
Total assets	907.0	999.7
Total equity	224.2	234.5
Deferred tax liabilities	1.7	0.3
Interest-bearing long term debt	660.6	676.2
Derivative financial liabilities - long term portion	0.2	7.5
Interest-bearing short term debt	10.2	52.2
Derivative financial liabilities - short term portion	0.6	19.9
Deferred revenues and other payables	9.5	9.1
Total equity and liabilities	907.0	999.7

The decrease in Vessels from 31 December 2014 reflects depreciation of the Company's ten vessels for the full year 2015.

During 2015, OSG made repayments on the deferred principal obligation (DPO) of MUSD 3.3, of which MUSD 1.7 is principal repayment. See note 12 to the condensed consolidated financial statements for additional information on the DPO.

Other non-current assets include AMSC's 19.6% investment in Philly Tankers AS.

Interest bearing debt as of 31 December 2015 was MUSD 670.8, net of MUSD 8.0 in capitalized fees versus MUSD 728.4 as of 31 December 2014. This debt relates to the bank financing of the ten vessels of MUSD 448.4, the bond of MUSD 210.4 and a subordinated loan from Aker ASA of MUSD 20.0. During Q4 2015, the Company repaid the previous secured vessel debt and interest rate swaps totaling MUSD 506.6. A one-time charge to the income statement of MUSD 1.9 was booked in Q4 2015 as a write-off of unamortized loan fees. New loan fees of MUSD 8.4 were capitalized as part of the refinancing. AMSC was in compliance with all of its debt covenants as of 31 December 2015.

Outlook

The U.S. Jones Act product tanker market has remained active throughout 2015. During Q1, long-term time charters were secured by Philly Tankers for two of its newbuildings, scheduled for delivery in Q4 2016 and Q1 2017. In July 2015, Philly Tankers declared its two options with Aker Philadelphia Shipyard with deliveries in 2017. The four ship transaction between Philly Tankers and Kinder Morgan, which was signed after the end of the second quarter, demonstrated that shipping remains an attractive and sustainable alternative for US domestic transportation of oil and products. Limited availability for new delivery slots at the two shipyards currently able to build Jones Act product tankers supports a further robust U.S. Jones Act product tanker market in the medium to long term. In the short term it is expected that the market will soften somewhat driven by falling U.S. onshore oil production.

To date, profits generated under our profit sharing agreement with OSG have been applied to offset the Company's deficit balances with OSG ("OSG credit"). See note 11 to the condensed consolidated financial statements for additional information on profit sharing.

AMSC expects to continue paying regular quarterly dividends, with intentions of increasing the amount by approximately 15% in 2016 compared to 2015.

Risks

The risks facing AMSC principally relate to the operational and financial performance of OSG as well as overall market risk.

AMSC's activities also expose the Company to a variety of other financial risks, including currency, interest rate and liquidity risk. Refinancing is not considered a significant risk in the near term as the next debt maturity is in February 2018.

For further details of AMSC's risks, including our guarantees, refer to the 2014 Annual Report.

Definitions

Jones Act - The U.S. cabotage law, referred to as Jones Act, requires all commercial vessels operating between U.S. ports to be built, owned, operated and manned by U.S. citizens and to be registered under the U.S. flag. In 1996 certain amendments were enacted to the U.S. vessel documentations laws, allowing increased non-U.S. participation in the ownership of vessels operating in the Jones Act trade under certain conditions, known as the finance lease exception.

Oslo, 16 February 2016 The Board of Directors and President / CEO American Shipping Company ASA

Annette Malm Justad Chairperson

Peter D. Knudsen Director

Kristian Røkke Director

Pål Magnussen President / CEO

AMERICAN SHIPPING COMPANY ASA GROUP CONSOLIDATED FINANCIAL STATEMENT FOR THE FOURTH QUARTER 2015

CONDENSED INCOME STATEMENT

		unaudited
	Q4	Q4	Full year
Amounts in USD million (except share and per share information)	2015	2014	2015	2014
Operating revenues	22.1	22.1	87.8	87.6
Operating expenses	(0.2)	(0.1)	(2.9)	(3.1)
Operating profit before depreciation - EBITDA	21.9	22.0	84.9	84.5
Depreciation	(9.1)	(8.5)	(34.2)	(33.9)
Operating profit - EBIT	12.8	13.5	50.7	50.6
Gain on de-recognition of bond		۰		9.5
Net interest expense	(10.3)	(12.9)	(48.9)	(51.9)
Unrealized gain on interest swaps	(1.0)	4.3	12.5	20.1
Net foreign exchange gain/(loss)		(0.8)	(0.2)	(5.1)
Profit/(loss) before income tax	1.5	4.1	14.1	23.3
Income tax expense	0.6	(0.3)	0.6	(0.3)
Net profit/(loss) for the period *	2.1	3.8	14.7	23.0
Average number of common shares	60,616,505	60,616,505	60.616.505	60,205,903
Earnings/(loss) per share (USD)	0.03	0.06	0.24	0.38

CONDENSED STATEMENT OF CHANGES IN COMPREHENSIVE INCOME

	unaudited
	Q4	Q4	Full vear
Amounts in USD million	2014	2014	2015	2014
Net income/(loss) for the period	2.1	3.8	14.7	23.0
Other comprehensive income for the period, net of tax		-
Total comprehensive income/(loss) for the period *		3.8	14.7	23.0

* Applicable to common stockholders of the parent company.

	unaudited
	31-Dec	31-Dec
Amounts in USD million	2015	2014
Assets
Non-current assets
Vessels	813.8	848.0
Deferred tax assets	2.0
Interest-bearing long term receivables (DPO)	32.6	33.2
Other long term assets	24.9	24.9
Total non-current assets	873.3	906.1
Current assets
Trade and other receivables	0.4	0.3
Cash held for specified uses	1.6	8.1
Cash and cash equivalents	31.7	85.2
Total current assets	33.7	93.6
Total assets	907.0	999.7
Equity and liabilities
Total equity	224.2	234.5
Non-current liabilities
Bond payable	210.4	201.3
Other interest-bearing loans	458.2	479.4
Derivative financial liabilities - long term portion	0.2	7.5
Capitalized fees	(8.0)	(4.5)
Deferred tax liability	1.7	0.3
Total non-current liabilities	662.5	684.0
Current liabilities
Interest-bearing short-term debt	10.2	52.2
Derivative financial liabilities - short term portion	0.6	19.9
Deferred revenues and other payables	9.5	9.1
Total current liabilities	20.3	81.2
Total liabilities	682.8	765.2
Total equity and liabilities	907.0	999.7

٦

$\top$

CONDENSED STATEMENT OF CHANGES IN TOTAL EQUITY

	unaudited
	Full year
Amounts in USD million	2015	2014
Equity related to the equity holders of the parent company as of beginning of period	234.5	72.8
Total comprehensive income/(loss) for the period	14.7	23.0
Equity issued	$\overline{\phantom{a}}$	157.0
Repurchase of treasury shares		(0.9)
Proceeds from sale of treasury shares		0.7
Dividends/return of capital	(25.0)	(18.0)
Total equity as of end of period	224.2	234.5

CONDENSED CASH FLOW STATEMENT

	unaudited
	Full vear
Amounts in USD million	2015	2014
Net cash flow from operating activities	50.9	38.1
Net cash flow from investing activities		(25.0)
Net cash flow from financing activities	(110.9)	60.6
Net change in cash and cash equivalents	(60.0)	73.7
Cash and cash equivalents, including cash held for specified uses at the beginning of period	93.3	19.6
Cash and cash equivalents, including cash held for specified uses at end of period	33.3	93.3

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND TWELVE MONTHS ENDED 31 DECEMBER 2015

1. Introduction - American Shipping Company

American Shipping Company ASA ("AMSC") is a company domiciled in Norway. The condensed interim financial statements for the three and twelve months ended 31 December 2015 comprise AMSC and its wholly owned subsidiaries. These financial statements have not been audited or reviewed by the Company's auditors. American Shipping Company has one operating segment.

The 2014 annual financial AMSC are available consolidated statements of at www.americanshippingco.com.

2. Basis of Preparation

These consolidated interim financial statements reflect all adjustments, in the opinion of AMSC's management, that are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the three and twelve month periods are not necessarily indicative of the results that may be expected for any subsequent interim period or year.

3. Statement of compliance

These consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS) applicable for interim reporting, IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as of and for the year ended 31 December 2014.

4. Significant accounting principles

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended 31 December 2014.

There have not been any new IFRS standards or interpretations issued or effective after the completion of the annual consolidated financial statements for the year 2014 that have a significant impact on AMSC's financial reporting for the three and twelve months ended 31 December 2015.

5. Use of estimates

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts in the financial statements. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from these estimates.

The most significant judgments made by management in preparing these condensed consolidated interim financial statements in applying the Group's accounting policies, and the key sources of estimation uncertainty, are the same as those that applied to the consolidated financial statements as of and for the year ended 31 December 2014.

Certain prior period reclassifications were made to conform to current year presentation.

6. Tax estimates

Income tax expense is recognized in each interim period based on the best estimate of the expected annual income tax rates. During Q4 2015, the Company booked MUSD 1.4 in state deferred tax liability (MUSD 0.3 in Q4 2014) and MUSD 2.0 in federal deferred tax assets. Since the entities in the Group cannot be consolidated for state tax purposes, the Company must recognize a state deferred tax liability for those entities in which gross tax liabilities exceed gross tax assets. Tax assets include the Company's net operating losses in carryforward, the losses on derivative financial liabilities and capitalized loan fees. Tax liabilities include the value of the vessels.

The Company has MUSD 487.9 of net operating losses in carryforward in the U.S. as of 31 December 2015, of which approximately MUSD 381 are subject to certain limitations under Internal Revenue Service Code Section 382 (see note 5 of the 2014 consolidated financial statements for more details). The Company also has MUSD 86 of net operating losses in carryforward in Norway as of 31 December 2014.

7. Share capital and equity

As of 31 December 2015, AMSC had 60,616,505 ordinary shares at a par value of NOK 10 per share.

On 3 January 2014, 30,475,492 ordinary shares were issued in connection with the private placement and debt conversion, each with a par value of NOK 10 per share. Total outstanding shares as of that date were 58,075,492. Proceeds from the private placement net of transaction costs were MUSD 116.1

On 23 January 2014, through a subsequent offering, a total of 2,541,013 ordinary shares were issued at a par value of NOK 10 per share. The total outstanding shares of AMSC are 60,616,505. Proceeds from the subsequent offering net of transaction costs were MUSD 11.8

Dividends paid (classified as repayment of previously paid in			Full year 2015		Full year 2014
share premium)	27-Feb-15	29-May-15	28-Aug-15	13-Nov-15	1-Jul-14	30-Jul-14	30-Oct-14
NOK per share	0.77503	0.77049	0.85352	0.87748	0.59326	0.61290	0.64912
USD per share	0.103	0.103	0.103	0.103	0.100	0.100	0.100
Aggregate NOK (millions)	47.0	46.7	51.7	53.2	36.0	37.0	39.0
Aggregate USD (millions)	6.25	6.25	6.25	6.25	6.0	6.0	6.0

8. Interest-bearing debt

The following table shows material changes in interest-bearing debt:

	12 months to	12 months to
Amounts in USD million	31-Dec-15	31-Dec-14
Balance at beginning of period	728.4	801.5
Repayment of debt / loan fees	(541.6)	(49.1)
Issuance of debt	470.0
Interest added to oustanding debt	6.7	7.1
Foreign currency impact		2.0
Amortization of loan fees and discount	7.3	5.5
De-recognition of bond		(9.5)
Conversion to equity		(29.1)
Balance at end of period	670.8	728.4

On 25 November 2015, funding was completed on MUSD 450 of secured vessel debt and MUSD 20 of a subordinated loan from Aker ASA. The Company paid MUSD 8.4 in refinancing fees, which were capitalized, and wrote off MUSD 1.9 of unamortized loan fees from the previous bank loan. The Company also prepaid the interest rate swaps of MUSD 14.2 and entered into new five year interest rate swaps at an average rate of 164 bps for MUSD 210 of the new debt. The Company used approximately MUSD 45 of its cash balance to complete the refinancing.

On a combined basis, key terms of the secured vessel debt are as follows:

Total amount: MUSD 450

Average weighted tenor: 6 years (80% of the loan amount with 5 year tenor and 20% with a 10 vear tenor)

Average weighted interest cost: Libor + 325 bps margin

The following table shows the new secured vessel debt maturity:

Amounts in USD million	Repayment
2016	10.2
2017	28.4
2018	28.4
2019	29.8
2020	287.8
2021	5.0
2022	5.0
2023	5.0
2024	5.0
2025	43.8
Total repayment	448.4

The Company is subject to a loan covenant under its bond obligation that requires the Company to maintain a minimum level of MUSD 50.0 of consolidated equity adjusted for cumulative unrealized gains and losses on interest rate swap agreements. The Company's equity as defined under the loan covenant as of 31 December 2015 was MUSD 225.0.

9. Related party transactions

AMSC believes that related party transactions are made on terms equivalent to those that prevail in arm's length transactions.

10. Interest

Amounts in USD million	3 months to 31-Dec-15	3 months to 31-Dec-14	12 months to 31-Dec-15	12 months to 31-Dec-14
Interest expense	(10.8)	(13.4)	(51.0)	(54.4)
Interest income	0.5	0.5	2.1	2.5
Net interest expense	(10.3)	(12.9)	(48.9)	(51.9)

11. Profit sharing agreement with OSG

As disclosed, AMSC and OSG have an agreement sharing profits from OSG's operations of AMSC's 10 vessels. The calculation of profit to share is made on an aggregated fleet level. The calculation thus starts with total vessel revenue, subtracted by defined cost elements.

Profit Sharing Calculation for Q4 and full year 2015

AMSC's 50% share of the profit (MUSD 3.4 for the fourth quarter 2015; MUSD 11.1 for full year 2015) is used to reduce the OSG credit. When the OSG credit has been fully repaid, AMSC will receive its 50% share of the profit in cash. The cumulative balance as of 31 December 2015 for the OSG credit is shown in the table below. The calculations are shown with aggregated, rounded figures in USD millions. Please note that these figures are unaudited numbers and have not been subject to affirmative review.

Balance per Q4-2015:

	Beginning balance	Accrued		Ending balance
	as of Q3 2015	interest	Repayment	as of Q4 2015
OSG credit	16.3	0.4	(3.4)	13.3

Balance per Q4 2015:

	Beginning balance as of Q1 2015	Interest		Ending balance Reduction as of Q4 2015
OSG credit	22.6	1.8	(11.1)	13.3

12. Deferred Principal Obligation (DPO)

Pursuant to the current charter agreements, OSG had the right to defer payment of a portion of the bareboat charter hire for the first five vessels during the initial seven year fixed bareboat charter periods. OSG paid a reduced bareboat charter rate and assumed the DPO. The DPO accrued on a daily basis to a maximum liability of MUSD 7.0 per vessel. The DPO during the initial seven year period was discounted using the estimated market discount rate at lease inception. After the initial seven years, the DPO is repaid over 18 years including interest unless the bareboat charter is terminated earlier at which time the DPO becomes due immediately. 3Q 15 represented the final quarter of DPO accruals. OSG has made repayments on all five vessels delivered under the arrangement, and those vessels' cash bareboat charter hire resumed to its full contractual amount. In 2016, AMSC expects to receive approximately MUSD 3.9 of DPO- related payments, including MUSD 1.9 in principal repayments. Below are the changes to the DPO receivable:

Amounts in USD million	12 months to 12 months to 31-Dec-15	31-Dec-14
Balance at beginning of period	33.2	29.6
DPO revenue Repayments of principal Interest accreted	0.6 (1.7) 0.5	3.1 (0.8) 1.3
Balance at end of period	32.6	33.2

13. Financial Instruments

The only financial instruments that the Company accounts for at fair value on an ongoing basis are the interest rate swaps, which are classified in the Level 2 category as is described in the 2014 consolidated financial statements. The Company's policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. During the quarter and twelve month periods ended 31 December 2015, there were no transfers between categories.

The fair values of financial instruments, the related fair value hierarchy, together with the carrying amounts shown in the balance sheet are as follows:

	Carrying amount	Fair value	Fair value
Amounts in USD millions	31-Dec-15	31-Dec-15	hierarchy*
Interest-bearing receivables (DPO)	32.6	26.0
Interest swap used for economic hedging	(0.8)	(0.8)
Unsecured bond issue (gross)	(210.4)	(198.9)
Secured loans (gross)	(448.4)	(475.0)

The fair value of cash, accounts receivable and accounts payable approximate the carrying values due to their short-term nature.

* Described in the 2014 consolidated financial statements

14. Events after the Balance Sheet date

On 27 January 2016, Pål Magnussen purchased 30,000 shares in AMSC. The price per share was NOK 19.44, constituting a price reduction of 20% to compensate for the lock-up restrictions on the shares for a period of three years, in accordance with the share purchase agreement entered into between the Company and the CEO.

American Shipping Company ASA Oksenøyveien 10 PO Box 243 1326 Lysaker NORWAY

Pål Magnussen	Morten Hofstad	Leigh Jaros
President / CEO	CFO	Business Controller/
		Financial Manager
Tel: +47 24 13 00 00	Tel: +47 24 13 00 87	Tel: +1 484 732 3021
Cell: +47 90 54 59 59	Cell: +47 99 71 70 20	Cell: +1 484 880 3741
pal.magnussen@amshipco.no	mh@amshipco.no	leigh.jaros@amshipco.com

Disclaimer

This release includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for American Shipping Company ASA and its subsidiaries and affiliates (the "American Shipping Company Group") lines of business. These expectations, estimates, and projections are generally identifiable by statements containing words such as "expects," "believes," "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the American Shipping Company Group's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although American Shipping Company ASA believes that its expectations and the information in this release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this release. Neither American Shipping Company ASA nor any other company within the American Shipping Company Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the release, and neither American Shipping Company ASA, any other company within the American Shipping Company Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the release.

American Shipping Company ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the release, other than what is required by law.

The American Shipping Company Group consists of many legally independent entities, constituting their own separate identities. American Shipping Company is used as the common brand or trade mark for most of these entities. In this release we may sometimes use "American Shipping Company"," "Group, "we," or "us," when we refer to American Shipping Company Group companies in general or where no useful purpose is served by identifying any particular company of American Shipping Company.