AMSC ASA — Investor Presentation 2021

Feb 12, 2021

American Shipping Company ASA

Q4 2020 financial results and company update 12 February 2021

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 2020 highlights

• Adjusted net profit of USD 5.0 million*

• Normalized EBITDA** of USD 22.2 million

  • • DPO of USD 0.9 million

• Listed the USD 200m senior unsecured bond on OSE subsequent to year-end under the ticker ATI02

• Declared Q4 dividend of USD 0.10 per share,
  • •Ex-dividend date of 18 February 2021 with payment on or about 1 March 2021
  • • Classified as a return of paid in capital

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

** Includes DPO, reported EBITDA for Q4 20 is USD 21.3 million

Stable, predictable EBITDA

Normalized EBITDA (USD millions)

• Normalized EBITDA of USD 22.2 million in Q4 20 (USD 22.2 million in Q4 19)

Fleet deployment overview

Long-term fixed rate bareboat charters to OSG secures cash flow

• • AMSC's fleet is on firm BB Charters to OSG with evergreen extension options
• • AMSC receives fixed annual bareboat revenue of USD 88 million + ~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

A critical part of oil majors' transportation logistics

Jones Act crude oil & products primary trade routes

Source: Navigistics' Wilson Gillette Report

Reduced clean product demand and low refinery utilization expected to gradually recover in 2021 and 2022

EIA is forecasting a gradual recovery in 2021 and 2022

• Demand for clean products in the USA decreased by ~30% in Q2 2020 compared to same period previous years
• Demand recovery since then has been significant, but remain lower than historical averages
• Latest data suggests current demand is 9% below 5 year average, and refinery utilization is around 10% below 5 year average
• EIA is forecasting a gradual full recovery through 2021 and 202 2

Drop in clean products demand slowly recovering

Source: EIA Weekly Petroleum Status Report February 10,2021

Long-term trend of increasing marine transportation of clean products into Florida, reduced by COVID-19

• Increasing consumption of clean products in Florida is driving demand for Jones Act tanker shipments cross US Gulf
• Over the past 10 years this trade has grown with a CAGR of about 3.5%
• Impact from Covid-19 mitigating measures have significantly reduced shipments in 2020, but expected to gradually return to normal during 2022

Mbbls per month

Gulf Coast to Florida Trade Lane

• As Florida has no pipeline connection nor any refineries, all clean products consumed are supplied by sea
• Florida is sourcing 90% of its clean products demand on a Jones Act tanker from US Gulf refineries
• Florida consumption is split 65-70% Gasoline, 15-20% Diesel and 10-15% Jet fuel

Crude trade to Northeast has remained strong despite COVID-19, may face increased volatility in the short term

PADD 3 to PADD 1 Crude Oil Moves by Tanker and Barge (3 month moving average)

Trade lane carrying Crude from Gulf Coast to U.S. Northeast

• Historically, volumes have been driven by spread in pricing of U.S. Crude Oil vs. international alternatives
• Low crude oil price and falling US oil production is potentially increasing oil price spread volatility going forward

Source: EIA, Marine Traffic and AMSC analysis

Fleet reduction as scrapping continues

Fleet profile by vessel age

Considerable fleet growth in past years, but scrapping has already reduced active fleet to 2015 levels

Source: Navigistics' Wilson Gillette Report December 2020, broker reports and AMSC analysis

Income Statement (unaudited)

F i i U S D i l l i ( h d h i f i ) t t g u r e s n m o n e x c e p s a r e a n p e r s a r e n o r m a o n	Q 4 2 0 2 0	Q 4 2 0 1 9
O t ing p er a re ve nu es	2 2. 2	2 2. 1
O t ing p er a e xp en se s	( 0. 9 )	( 0. 8 )
O in f i be fo de ia io E B I T D A t t t p er a g p ro re p re c n -	2 1. 3	2 1. 3
De ia t ion p re c	( ) 8. 7	( ) 8. 5
O t in f i t - E B I T p er a g p ro	1 2. 7	1 2. 8
Ne f ina ia l e t nc xp en se	( 6 ) 7.	( 1 0. 3 )
/ ( ) Un l ize d in los in te t s re a g a s on re s wa p s	0. 4	0. 1
Ne t fo ig ha in / ( los ) re n ex c ng e g a s	-	-
Pr f i / ( lo ) be fo in t ta o ss re co m e x	5. 5	2. 5
In ta co m e x ex p en se	( 0. 1 )	-
No h inc ta be f i t / ( ) n- ca s om e x ne ex p en se	1 4. 5	1. 3
Ne t p f i t / ( lo ) fo t he io d * ro ss r p er	1 9. 9	3. 8
Av be f c ha er ag e nu m r o om m on s re s	6 0, 6 1 6, 0 5 5	6 0, 6 1 6, 0 5 5
/ ( ) ( S ) Ea in lo ha U D rn g s ss p er s re	0. 3 3	0. 0 6

Balance Sheet (unaudited)

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

Cash position increased during the quarter

CASH DEVELOPMENT IN 4Q 20 (USD millions)

Summary – long term stable business model despite short term volatility imposed by Covid-19

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	S f f f i i i t h l t i g n c a n r e e c a s o w g e n e r a o n 