Philly Shipyard — Regulatory Filings 2014

Jun 11, 2014

Aker Philadelphia Shipyard Delivers First Aframax Tanker to SeaRiver Maritime

Aker Philadelphia Shipyard Delivers First Aframax Tanker to SeaRiver Maritime

Aker Philadelphia Shipyard, Inc. (APSI), the sole operating subsidiary of Aker

Philadelphia Shipyard ASA (Oslo: AKPS), has delivered the first of two aframax

tankers to SeaRiver Maritime, Inc. (SeaRiver), Exxon Mobil Corporation's U.S.

marine affiliate. The 820 foot long, 115,000 deadweight ton tanker will

transport up to 800,000 barrels of Alaskan North Slope crude oil from Prince

William Sound, Alaska to the U.S. West Coast. The vessel is equipped with double

hull protection, the latest navigation and communications equipment, and an

energy efficient engine.

"We are proud to have delivered this fine vessel, the Liberty Bay, to a first

class customer such as SeaRiver and are confident it will serve them well for

many years. The men and women of the shipyard have completed the largest vessel

built in Philadelphia in nearly 70 years and further cemented APSI's important

place as part of the domestic energy solution," said Steinar Nerbovik, APSI's

Managing Director.

As previously disclosed in AKPS's Q1 2014 report, a defect in the vessel's

propulsion system was discovered during sea trials in March 2014. All remedial

efforts to resolve this issue, in addition to owner requested change orders,

were completed as planned. The rework impacted the vessel's schedule as

previously disclosed, but did not result in any liquidated damages.

APSI is currently constructing an additional 115,000 dwt crude oil tanker for

SeaRiver and two 50,000 dwt product tankers for Crowley. In addition to the

vessels currently under construction, APSI has contracts for two more 50,000 dwt

product tankers for Crowley, two 50,000 dwt product tankers for Philly Tankers

LLC, and two 3,600 TEU containerships for Matson Navigation with deliveries in

2018. For more information on the shipyard, please visit

www.akerphiladelphia.com.

Aker Philadelphia 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.

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

owned by Converto Capital Fund, 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 and Havfisk.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1792295]