AMSC ASA — Investor Presentation 2016

Feb 17, 2016

American Shipping Company ASA

Presentation of 4Q 2015 17 February 2015 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.

Fourth Quarter 2015 Highlights

• Dividend per share payment of USD 0.107 declared for 4Q 2015, up ~4% from 3Q 2015
• ~15% dividend growth in 2016 expected (YoY)
• Q4 2015 profit share of MUSD 3.4, which reduces profit share overhang
• Trailing twelve months profit share is MUSD 11.1
• Bank debt re- financing closed
• Ongoing discussions to sell AMSC's 19.6% shareholding in Philly Tankers

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

V E S S E L	2 0 1 5	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 u s o n
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

Bank Debt refinancing closed

• Closed and funded loan agreements for a total of MUSD 450 to refinance the secured vessel debt
• Structured in two separate facilities
• • MUSD 300 facility secured by eight vessels with a club of three banks consisting of BNP Paribas, SEB and Credit Agricole
• • MUSD 150 facility secured by two vessels with CIT, Prudential and AloStar
• Entered into interest rate swaps for MUSD 210 of the secured vessel debt
• Agreed changes to unsecured bond
• • 100% cash interest from bank debt funding
• • Option to extend maturity beyond February 2018 waived by AMSC

Key Terms of Bank Debt

• 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:
• •Y1: MUSD 8.3
• •Y2-4: MUSD 28.3
• • Y5: MUSD 44.3 (expect to refinance after year 4)

Philly Tankers

• In 3Q 15, Philly Tankers AS agreed to sell its four product tanker contracts to a subsidiary of Kinder Morgan, Inc
• •Total consideration of MUSD 568
• •Assignment to take place immediately before delivery of each ship
• •Deliveries scheduled from Q4 2016 through Q4 2017
• AMSC is in discussions to sell its 25,000 shares in Philly Tankers
• •Shares will only be sold if satisfactory terms and conditions obtained by AMSC
• As part of the refinancing, AMSC has entered into a MUSD 20 subordinated loan from Aker ASA
• •PIK interest of 10.25% with maturity in 4Q 2020
• •Loan will be repaid with proceeds from AMSC's shares in Philly Tankers

Stable Operating Revenues and TTM profit share of MUSD 11.1

• • Operating revenues of MUSD 22.1 in 4Q15 (MUSD 22.1 in 4Q14)
• • Normalized EBITDA* of MUSD 26.3 in 4Q15 (MUSD 25.7 in 4Q14)
• • Profit sharing of MUSD 3.4 in 4Q14)
• • Trailing twelve months profit share of MUSD 11.1

OPERATING REVENUES PER QUARTER (MUSD)

EBITDA & PROFIT SHARE PER QUARTER (MUSD)

TTM EBITDA & PROFIT SHARE PER 4Q (MUSD)

TTM 4Q 13 TTM 4Q 15 TTM 4Q 14

CASH DEVELOPMENT IN 4Q 15 (MUSD)

Balance Sheet

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

Substantial dividend growth in 2016 expected

DIVIDENDS PER SHARE (USD)

0.1002Q 0.1001Qe 0.1074Q 0.1072Q 3Q 0.103 0.103 1Q 0.1034Q 0.1003Q 2014 2015 2016

Dividends expected as follows*

• 4Q15: USD 0.107 / share (authorized by BoD)
• 1Q16: USD 0.107 / share (expected)
• Total dividend for 2016 expected to grow approx. 15% compared to 2015

AMSC Investment Highlights

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

U S D 1 4 b i l n n a n n u a i t t e c o n o m c o p u u	8 4 0 0 0 j b i U S o s n , h i d s p a r s y
0 0 0 0 j b k i 7 o s w o r n g , i t h J A t o n o r o n e s c w l v e s s e s	O 3 9 0 0 0 l v e r v e s s e s , f l l i o a s z e s t i r e p r e s e n n g a n i f U S D t t n v e s m e n o 3 0 b n