AMSC ASA — M&A Activity 2022

May 12, 2022

American Shipping Company ASA: New vessel acquisition and new long-term bareboat contract

American Shipping Company ASA: New vessel acquisition and new long-term bareboat contract

12 May 2022

American Shipping ASA ("AMSC" or the "Company") is pleased to announce its

purchase of the offshore construction vessel Normand Maximus from Maximus

Limited, a company controlled by its secured lenders (the "Transaction"). In

conjunction with the Transaction AMSC will enter into a long-term bareboat

agreement with a subsidiary of leading offshore services provider Solstad

Offshore ASA ("Solstad").

Total purchase price for the vessel is about USD 157 million and the Company

expects to take delivery in Q4 2022. AMSC intends to finance the Transaction

through 70% debt and the remaining amount through a combination of cash on hand

and new equity. AMSC has already received indicative debt financing terms and

has strong support from key stakeholders to finance the Transaction.

AMSC CEO, Pål Lothe Magnussen, comments "We are excited about this value

accretive acquisition as it creates significant growth in cash flows and leads

to a substantial increase in annual EBITDA. It also diversifies AMSC's leasing

portfolio and adds additional stable and predictable returns to our

shareholders. We look forward to working together with Solstad as a long-term

tonnage provider going forward. We have for some time been looking for the right

growth opportunity and we are very satisfied with concluding on this

transaction. The Transaction is accretive on all key financial metrics and is

projected to produce more than 20% annual return on equity with strong running

dividend yield. The offshore services market is in recovery and is currently

experiencing increased activity and positive outlook. We believe the timing of

the Transaction is favorable and the risk/reward attractive".

The Normand Maximus is a premier offshore construction vessel and one of the

most modern heavy duty subsea construction vessels globally. The vessel was

built in 2016, has 2600m[2] working deck, accommodation capacity for 180 people

and a carousel for flexible products with about 4000t capacity. Main workscope

is laying flexible pipes and umbilicals and installation of subsea equipment.

Additional workscope in the future includes installation of power cables for the

offshore wind industry.

Solstad is a leading offshore services company with a large fleet of offshore

vessels operating globally. Solstad is the present operator of the Normand

Maximus and will continue to do so under a new bareboat contract with AMSC.

Company contacts:

Pål Magnussen, Chief Executive Officer +47 90 54 59 59

Morten Bakke, Chief Financial Officer +47 900 955 94

Leigh Jaros, Controller +1 484 880 3741

About American Shipping Company ASA:

Established in 2005 and listed on the OSE, AMSC is a ship owning company with

nine modern handy size product tankers and one modern handy size shuttle tanker

on bareboat charter with Overseas Shipholding Group (OSG). OSG charters the

vessels out on time charters to major oil companies in the U.S. coastwise Jones

Act trade.  AMSC has a significant contract backlog as well as a profit sharing

agreement with OSG which offers visibility with respect to future earnings and

potential dividend capacity. The Company has an ambition to pay attractive

dividends to its shareholders. Further information is available at

www.americanshippingco.com.

This information is considered to include inside information pursuant to the EU

Market Abuse Regulation article 7 and is subject to the disclosure requirements

pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock

exchange announcement was published by Leigh Jaros, Controller, American

Shipping Company ASA, on May 12, 2022 at 16:40 CET