Philly Shipyard — Capital/Financing Update 2016

May 24, 2016

Philly Shipyard Finalizes Construction Funding From Cat Financial

Philly Shipyard Finalizes Construction Funding From Cat Financial

Philly Shipyard ASA (Oslo: PHLY) announced today that its wholly owned U.S.

subsidiary, Philly Shipyard, Inc. (PSI) has entered into a definitive loan

agreement with Caterpillar Financial Services Corporation (Cat Financial) for a

USD 150 million loan facility to finance the construction of four product

tankers, designated as Hulls 025-028. This facility is subject to a maximum

borrowing amount of USD 75 million per vessel and secured by a first lien on the

four vessels. The loans under this facility will accrue interest at three-month

LIBOR plus 3.00% as defined in the loan agreement. The commitment letter for

this facility was originally disclosed on December 30, 2015.

This facility is a continuation of the extensive cooperation between Philly

Shipyard and Cat Financial that now includes a total of 26 vessels, including

both product tankers and containerships, and will span a period of 15 years when

Hull 028 is delivered in 2017.

All four vessels to be financed by this facility are currently under contract

with Philly Tankers LLC.  As previously announced by PHLY, the shipbuilding

contract for each of these vessels will be assigned at delivery by Philly

Tankers LLC to American Petroleum Tankers (APT), a subsidiary of Kinder Morgan,

Inc.

Philly Shipyard has delivered 23 ships in its 17 year history.  The four 50,000

dwt product tankers for APT are currently under construction and have planned

deliveries in 2016 and 2017.  Also under construction at the shipyard is one

50,000 dwt product tanker for Crowley Maritime Corporation with a planned

delivery during Q3 2016 and two 3,600 TEU containerships for Matson Navigation

Company, Inc. with planned deliveries in Q3 2018 and Q1 2019. For more

information on Philly Shipyard transactions and projects, please visit

www.phillyshipyard.com.

Philly Shipyard is a leading U.S. commercial shipyard constructing vessels for

operation in the Jones Act market.  It possesses a state-of-the-art shipbuilding

facility and has earned a reputation as the preferred provider of oceangoing

merchant vessels with a track record of delivering quality ships. Philly

Shipyard is listed on the Oslo Stock Exchange and is majority-owned by Aker

Capital II AS, which in turn is majority-owned by Aker ASA. Aker is a Norwegian

industrial investment company that creates value through active ownership.

Aker's investment portfolio is concentrated on key Norwegian industries that are

international in scope: oil and gas, fisheries and biotechnology, and marine

assets. Aker's industrial holdings comprise ownership interests in Aker

Solutions, Kvaerner, Det norske oljeselskap, Aker BioMarine, Ocean Yield,

Havfisk and Akastor.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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