Philly Shipyard — Earnings Release 2014

May 2, 2014

Aker Philadelphia Shipyard: First Quarter 2014 Results

Aker Philadelphia Shipyard: First Quarter 2014 Results

May 2, 2014

Financial Highlights

* EBITDA of USD 24.2 million, compared to USD 19.1 million in Q1 2013

* Total unrestricted cash of USD 106.7 million, compared to USD 68.8 million

at the end of Q1 2013

* Declared dividend of 17.5 NOK per share, approx. USD 37 million, to be paid

in May 2014

Aker Philadelphia Shipyard ASA today reported its highest ever quarterly result,

with an EBITDA of USD 24.2 million and net income of USD 17.8 million, an

increase relative to Q1 2013 of 27% and 48%, respectively.  The increase was

driven by the gain recorded from the sale of AKPS's profit sharing interests in

Hulls 017 and 018 to Crowley in Q1 2014.

"We are pleased to report both record earnings and a record dividend," said

Kristian Rokke, Chairman of AKPS. "Both highlight the value AKPS has generated

by creating and investing in Jones Act shipping assets in addition to

traditional shipbuilding activity.  We have a strong balance sheet and expect

another record year, and would therefore like to give more back to

shareholders."

On 30 April 2014, the Board of Directors authorized a dividend of NOK 17.5

(approx. USD 2.93) per share, which will be paid on or about 16 May 2013 to

shareholders on record as of 6 May 2014.  The total size of the dividend, which

is slightly higher than previously guided in connection with the sale of the

profit sharing interests in Hulls 017 and 018, is reflective of the company's

strong financial position and future earnings expectations.

The Company is currently in discussions with several interested parties

regarding a potential transaction involving the construction and sale of four

product tankers, Hulls 025-028, pursuant to which AKPS expects to retain

significant economic exposure in the vessels post-delivery.  AKPS is optimistic

about securing Hulls 025-028 as product tankers during 2014.

Production activity on the two aframax tankers for SeaRiver Maritime, Inc.,

ExxonMobil Corporation's U.S. marine affiliate, continues with approximately

82% of the overall project complete at quarter end.  In March 2014, the first

vessel (Hull 019) completed sea trials in accordance with the contract schedule.

However, during these trials a defect in the propulsion system was discovered

arising from a third-party supplied component.  Remedial efforts are currently

underway to resolve this issue and will be concluded later this month.  It is

expected that the costs of this work, in addition to other higher than

forecasted costs for completion of the vessels, will result in a gross margin

for the SeaRiver project of between 2 and 3%.

A naming ceremony for the first SeaRiver tanker was held on 25 April 2014, in

line with the original plans set in 2011, where the vessel was presented to the

owner and officially christened.

"The people of AKPS have done a great job building our largest ship yet and we

are proud to have been recognized for this by the customer last week," said

Kristian Rokke. "The SeaRiver project has elevated our organization's skill set

substantially and has been a key part in transforming our company to the benefit

of future projects." Kristian Rokke continued, "The defect in the propulsion

system is an isolated project specific issue that will not have impacts on other

projects, and we will of course do everything possible to mitigate the schedule

and cost impact from the rework."

Hull 020 production activities continue to progress in the Building Dock in line

with the contract schedule.  Construction activity on Hull 021 for Crowley

commenced as planned on 6 January 2014, as did construction activity on the

second product tanker in the series on 21 April 2014.  The majority of the

purchasing activities for Hulls 021-024 have been completed and long lead items

for Hulls 025-26 are being secured.  Previous guidance for the expected average

gross margin on Hulls 021 through 030 is unchanged at approximately 13%.

"We're off to a good start on the product tanker series with project

preparations and procurement activities, as well as ship construction," said

Kristian Rokke. "To an increasing degree, we are returning to a type of

production activity characterized by standardized shipbuilding for what is

expected to be a series of eight product tankers. We are excited to build-off

the previously constructed fourteen product tankers, apply lessons-learned from

the SeaRiver project, and use a disciplined approach to continuous improvement

to ensure the opportunities associated with series construction are fully

harnessed."

For more details, please see the attached Q1 2014 report.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1782185]