American Shipping Company ASA

Company Presentation June 2016

Important information

This Company Presentation is current as of June 2016. Nothing herein shall create any implication that there has been no change in the affairs of American Shipping Company ASA ("AMSC" or the "Company") since such date. 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.

AMSC: Stable Long Term Contracts with…

… Blue Chip charterers a such as…

Aker Companies Investor Day 5

American Shipping Company Illustrated

*** Vessel converted to a shuttle tanker and is on a 10 year BBC backed by a 10 year TC

AMSC fleet cost advantage

AMSC has a modern fleet acquired at a lower cost…

Notes: 1) Based on Philly Tankers

2) Based on newbuild cost for the tankers delivered to American Petroleum Tankers (Golden State excluded due to cost overrun)

3) New regulation adds NOx emission requirement that estimated will increase cost to USD 145-150m

4) Based on total consideration for 9 vessels, including additional expenses incurred by Kinder Morgan for taking delivery

Source: Company materials

AMSC fleet cost advantage (cont.)

…providing significantly lower break-even costs

Annual bareboat costs given various total capital IRRs with newbuild cost @ USD 134m

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AMSC Key Financial Highlights

Listed on OSE
-~ 1.6 BNOK MCAP (~ 195 MUSD)
Firm BBC Revenue of 88 MUSD
Normalized EBITDA of ~ 100 MUSD
-Reported EBITDA of 85 MUSD
-Deferred Payment Obligation (DPO) of 4 MUSD
-Profit share of 11 MUSD
Among top dividend yielding company on OSE
-~15% (2016E)
-Dividend supported by firm contracts
-Dividend classified as repayment of capital

**TTM NORMALISED EBITDA* PER 1Q (MUSD)**

DIVIDEND YIELD**

9Aker Companies Investor Day

The Jones Act

The Jones Act has been in place since 1920… …and the Jones Act is here to stay!

Passed in 1920, the Jones Act generally restricts the marine transportation of cargo and passengers between points in the United States to vessels that meet the following criteria:
-Built in the United States
-Registered under the U.S. flag
-Manned predominately by U.S. crews
- At least 75% owned and controlled by U.S. citizens
Essential feature of U.S. national security, ensuring non- dependency of ships controlled by foreign nations
AMSC's operation in the Jones Act market is made possible by the lease finance exception of the Jones Act

100,000,000,000

USD 100bn contribution to the U.S. domestic economy

30,000,000,000

USD 30bn total investments in over 40,000 vessels

400,000

# jobs directly and indirectly impacted by the U.S. maritime industry

U.S. Transportation of crude and clean products

The link between Oilfields and Refineries

Onshore shale oil resources mainly located inlands
Refineries mainly located along the coast
Combination of pipelines, trains, tankers/barges and trucks necessary to transport oil from fields to refineries and products from refineries to end markets

Transport Modes

U.S. Oilfields and Transportation links

Stable fleet deployment over time – current shift back to clean products trade

Current Jones Act tank fleet deployment by main trades (Tankers and ATBs)

Historical Jones Act tank fleet deployment by main trades (Tankers and ATBs)

Reduced crude transportation due to lower shale production - expected to rebound

Shale oil production is going from strong growth over the past 5 years to contracting in 2016, but production may increase again in 2017 and forward as oil price recovers
Reduced crude production, especially from Eagle ford, leads to reduced shipments from Corpus Christi, Texas, but volumes seems to have stabilized over the past three months
Shipments out of Corpus Christi will likely increase as Eagle Ford production increase

Favorable cost curve at Eagle Ford could lead rebound as oil price recovers

Total Eagle Ford production (liquids and gas) Eagle Ford cost curve (\$/bbls) (only liquids)

Eagle Ford has one of the most cost sensitive production curves in the U.S. shale
Current production level has a breakeven level around \$45 per barrel,
Significant growth potential in the \$50 - \$75 price range

Growing but ageing fleet

Yard delivery schedules Vessel age since delivery

Source: Navigistics Aker Companies Investor Day ¹⁵

Softer market short term, but positive long term supply and demand balance

AMSC is the second largest tanker owner

	2	1 7
	2	1 0
	8		8
	1 0
	5	4
	6	1
	3 3	1
	3 4
MA RT AH ON OI L	3 1
	4
3	1
1	1
1	1
P l i R a n s e s o u r c e s	1

	T k ( l f 3 7 ) t t a n e r s o a o	A T B * ( l f 4 2 ) t t s o a o
	N b i l d t k ( t t l f 1 6 ) e w u a n e r s o a o	N b i l d A T B ( t t l f 8 ) e w u s o a o

Investment Highlights

LEADING MARKET POSITION

SECURED CASH FLOWS

STABLE U.S. JONES ACT TANKER MARKET

STRONG DIVIDEND YIELD

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THANK YOU!

2016 dividend supported by secured Bareboat + DPO cash flow alone…

Simplified illustration of AMSC cash-flow EXCLUDING profit share (MUSD)

Cash flow from Profit Share (MUSD 11 last 12 months) not included in figures above

Appendix: Profit Share

Illustration of the OSG profit share arrangement: trailing 4 quarters financials, MUSD

T/C hire received by OSG BBC hire paid to AMSC OPEX, profit layer to OSG and dry-dock provision Profit to share 50/50% with AMSC- ⁼

Note: Market rate not adjusted for utilization ²¹

Appendix: DPO Cash Flow

DPO = "Deferred Principal Obligation"
OSG pays a reduced cash rate on the first 5 vessels for 7 years, accruing up to USD 7m on each vessel
- Originally structured to reduce OSG's cash costs during the startup period
-Structured as a loan from AMSC to OSG
Payable to AMSC after 7 years, over 18 years including interest @ 6.06%
- Due in full if OSG does not extend the charter after the initial term
4Q 15 first quarter with full cash effect from DPO

DPO explained Split of bareboat rate for PT 1-5 first 7 years, USDk/d

Estimated yearly DPO payments to AMSC, USDm

Significant industry consolidation with Kinder Morgan in the lead

Aug 2015: Kinder Morgan acquired Philly Tankers, previously majority owned by PHLY for a total transaction value of USD 568m

Nov 2014: Kinder Morgan acquired 2 product tankers from Crowley for a consideration of USD 270m

Oct 2014: Genesis Energy acquired a 2-year old tanker for USD 157m

April 2014, Crowley acquired profit-share interests in 2 vessels from PHLY for a total transaction value of USD 40m

Dec 2013: Kinder Morgan acquired 4 existing and 5 newbuild tankers from AMPT for a total transaction value of USD 1.2bn

Appendix: BoD & Management

Previously: Director / Investment Banking Division / DNB Markets, Vice President / Corporate Banking Shipping and Offshore / DNB with experience from New York, Singapore and Oslo

MBA from Columbia University, MSc. from the Norwegian School of Management

Pål LotheMagnussen President /

CEO

CFO from April 2016
Previously: Senior Vice President / DVB Corporate Finance, Shipping Analyst / Moore Stephens LLP, Analyst / Credit Suisse
MSc. Shipping, Trade and Finance from Cass Business School and BA Business Studies form University of Greenwich

Leigh JarosBusiness Controller / Finance Manager

Controller in AMSC from July 2008 and CFO July 2011 – May 2014
Previously: +10 years corporate financial experience including financial reporting, analysis and budgeting. Ms. Jaros was employed by Aker Philadelphia Shipyard as its Accounting Supervisor prior to joining AMSC.
BSc in Finance and Economics from West Chester University
Board member since December 2007
Previously: CEO / Eitzen Maritime Services and various positions in e.g. Yara International, Norgas Carriers / IM Skaugen and Norsk Hydro
MSc. In Technology Management from MIT/NTH/NHH in addition to MSc in Chemical Engineering from NTH
Board member since March 2012
Previously: CEO / Jason Shipping, CEO / Eitzen Maritime Services and various positions in Christiania Bank, Nordea Bank and GIEK and others
MBA from Oslo Business School / Arizona State University

AudunStensvoldBoard Member

Board Member since May 2016
Currently Investment Director in Aker ASA
Prevously: CFO and Investment Director in i Converto Capital, Financial Advisor in Selmer and Financial Analyst in DNB.
MSc in Norwegian School of Economics (NHH)