AMSC ASA — Investor Presentation 2016

Nov 8, 2016

American Shipping Company ASA

Presentation of 3Q 2016 ⁸ November 2016 Slide 1

Important information

Nothing herein shall create any implication that there has been no change in the affairs of American Shipping Company ASA ("AMSC" or the "Company") as of the date of this Company Presentation. This Company Presentation contains forward-looking statements relating to the Company's business, the Company's prospects, potential future performance and demand for the Company's assets, the Jones Act tanker market and other forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Company Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development.

Third Quarter 2016 Highlights

• Declared Q3 dividend of USD 0.124 per share
• Q3 dividend is in line with previous guidance of dividend for 2016
• Normalized EBITDA* of MUSD 23.7
• •Q3 2016 profit share of MUSD 1.4
• •Q3 DPO of MUSD 1.0
• Trailing twelve months profit share MUSD 11.8
• Adjusted Net Profit of MUSD 3.0**
• Backlog of secured bareboat revenue of MUSD 366 with average weighted tenor of 3.8 years

* Including Profit Share and DPO. Reported EBITDA for 3Q16 is MUSD 21.3

** Net profit after tax, adjusted for non-recurring items, currency fluctuations, mark-to-market of derivatives and changes to deferred tax

Fleet* contracted trough 2019 with evergreen ext. options. Upside through profit share

V E S S E L	2 0 1 6	2 0 1 7	2 0 1 8	2 0 1 9
L A l o s n g e e s
C T i t e x a s y
A t n a c o r e s
H t o s o n u
L B h o n g e a c
N Y k e w o r
N i k i k i s
M t i a r n e z
B t o s o n
T * a m p a

• • AMSC's fleet is on firm BB Charters to OSG (among the world's largest tanker shipping companies) until December 2019+ evergreen ext. options
• • AMSC receives fixed annual Bareboat revenue of MUSD 88 + ~50% of the profits generated by OSG under the Time Charter contracts
• • OSG time charters the vessels to oil majors for U.S domestic trade

Stable EBITDA and increasing TTM profit share

• •Normalized EBITDA* of MUSD 23.7 in 3Q16 (MUSD 23.3 in 3Q15)
• •Profit sharing of MUSD 1.4 in 3Q16
• •DPO of MUSD 1.0 in 3Q16
• •Trailing twelve months profit share of MUSD 11.8

Cash slightly decreased in the quarter due to reduction in working capital

CASH DEVELOPMENT IN 3Q 16 (MUSD)

* Working capital was reduced in the quarter due to a delayed receipt of MUSD 6 of the monthly bareboat charter hire

Balance Sheet

F i i U S D i l l i g r e s n m o n s u	3 0 0 9 2 0 1 6	3 0 0 9 2 0 1 5
V l e s s e s	8 8 2 7	8 2 3 0
D f d t t e e r r e a x a s s e s	-	-
I b i l i b l ( D P O ) t t t n e r e s e a r n g o n g e r m r e c e v a e s	3 1. 6	3 3 0
O h t t t e r n o n c u r r e n a s s e s	2 4 5	2 4 9
T d d h i b l t r a e a n o e r r e c e v a e s	0 3	0 5
C h h l d f i f i a s e o r s p e c c u s e s	2 2	8 8
C h d h i l t a s a n c a s e q u v a e n s	4 0 6	6 0 8
T O T A A S S E T S L	8 8 8 3	9 1. 0 5
T l i t t o a e q u y	2 0 3 4	2 2 8 4
D f d l i b i l i i t t e e r r e a x a e s	0 5	0 3
I b i l d b t t t t n e r e s e a r n g o n g e r m e	6 4 9 2	2 0 8 4
C i l i d F t a p a z e e e s	( 6 8 )	( 2 2 )
D i i f i i l l i b i l i i l i t t t t e r v a v e n a n c a a e s o n g e r m p o r o n –	1. 2	-
I b i h d b t t t t t n e r e s e a r n g s o r e r m e	2 0 5	4 9 2 6
D i i f i i l l i b i l i i h i t t t t t e r v a v e n a n c a a e s s o r e r m p o r o n –	1 5	1 4 0
D f d d h b l t e e r r e r e v e n u e s a n o e r p a y a e s	6 2	9 5
T O T A L E Q U I T Y A N D L I A B I L I T I E S	8 8 8 3	9 5 1. 0 Sli de 7

Dividend history

0.124 0.124

DIVIDENDS PER SHARE (USD)

Dividends expected as follows* 1Q16: USD 0.107 / share (authorized by BoD) 2Q16: USD 0.124 / share (authorized by BoD) 3Q16: USD 0.124 / share (authorized by BoD) Total dividend for 2016 expected to grow approx. 15% compared to 2015 0.1030.1030.1030.1000.103

* Quarterly dividends are usually paid out within 60 days after end of quarter, thus Q4 is actually paid in Q1 the following year

2014

4Q

1Q

3Q 2Q 4Q

2015

2Q

2016

3Q

0.107

3Q

0.107

1Q

Investment Highlights

H i h l i h t g g s	C t o m m e n s
S S O S C T A B L E U J N E A T T A N K E R M A R K E T	f f I i d d l d t l i h d d n c r e a s n g e m a n o r c e a n p r o c s a s e p r c e a s r o p p e  u u U S h l d i d b d t t t s a e p r o u c o n e x p e c e o r e o u n  f M k t i t l t b t h i i i t i t i l t t i a r e s c r r e n s o e r, s p p n g r e m a n s a c o m p e e a e r n a e  u y u v v
E A D I N G M A R K E T L O S O P I T I N	P l J A t t k r e p a o n e s c a n e r e p o s r e  u y x u A M S C i h d l d k t t t t s e s e c o n a r g e s p r o u c a n e r o w n e r  S C 's f A M d l t b i l t t t b t t i l l b l b i l d i m o e r n e e a c o s s s a n a e o n e n g  u u y w w u i i d i l b k- f l l d k t t t p r c e s p r o v n g o w e s r e a e v e n c o s o a m o e r n a n e r ,
S T A B L E C A S H F L O W	S f f f t b l h l b b t t t t i d t a e c a s o w r o m a r e o a c o n r a c s a x e r a e  U i d i l f f i h t t t t p s e p o e n a r o m p r o s a r e a r r a n g e m e n  B k l f d b b f M U S D 3 6 6 i h t t a c o g o s e c u r e a r e o a r e v e n u e o w a v e r a g e  f 3 8 i h t d t e g e e n o r o e a r s w y

Appendix: About the U.S. Jones Act

• The Merchant Marine Act of 1920, P.L. 66-261 (the "Jones Act") requires that goods and passengers transported by water between U.S. ports be done in vessels that are built in the U.S, registered under the U.S. flag, U.S. crewed and >75% owned and controlled by U.S. citizens
• AMSC's operation in the Jones Act market is made possible by the lease finance exception of the Jones Act, which permits foreign ownership of the ships under certain conditions including that the vessels be bareboat chartered to qualified U.S. citizen operators, such as OSG
• The U.S. Jones Act industry is comprised of those ships that transport merchandise between U.S. ports located in continental United States, as well as Alaska, Hawaii and Puerto Rico
• Essential feature of U.S. national security, ensuring non- dependency of ships controlled by foreign nations

The Jones Act has been in place since ¹⁹²⁰ Significant financial impact gives bi-partisan support for the U.S. Jones Act

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