Philly Shipyard — Regulatory Filings 2016

Aug 12, 2016

Philly Shipyard Delivers Fourth Next Generation Product Tanker to Crowley

Philly Shipyard Delivers Fourth Next Generation Product Tanker to Crowley

Philly Shipyard, Inc. (PSI), the sole operating subsidiary of Philly Shipyard

ASA (Oslo: PHLY), today delivered the West Virginia, the fourth of four next

generation 50,000 dwt product tankers that it has built for Crowley Maritime

Corporation (Crowley). The vessel was delivered two weeks ahead of the contract

delivery date.

This delivery is the 24(th) vessel built by PSI (formerly known as Aker

Philadelphia Shipyard, Inc.). The next generation 50,000 dwt product tanker is

based on a proven Hyundai Mipo Dockyards (HMD) design that also incorporates

numerous fuel efficiency features, flexible cargo capability, and the latest

regulatory requirements. The vessel has also received LNG Ready Level 1 approval

from the American Bureau of Shipping (ABS). The 600-foot tanker has a carrying

capacity of 14.5 million gallons of crude oil or refined products.

"Today's delivery marks the successful completion of a four tanker series for

Crowley," remarked Philly Shipyard's President and CEO Steinar Nerbovik.  "We

have appreciated a strong partnership with Crowley, stemming from the previous

two Crowley tankers delivered in both 2012 and 2013, and today are proud to add

these four safe and quality vessels to its growing fleet. On behalf of the men

and women at the shipyard, we send our well wishes to the dedicated crew that

will operate the West Virginia."

"The delivery of the West Virginia represents our total commitment at Crowley to

providing the best performance for our customers with efficiency and innovative

solutions," said Crowley's Rob Grune, senior vice president and general manager,

petroleum services. "The completion of West Virginia and its sister ships

demonstrates our belief in the Jones Act trade, and our commitment to supporting

our economy through U.S. shipbuilding and crewing. We congratulate Philly

Shipyard for reaching this milestone, as well as the dedicated, hard-working men

and women who build and crew these ships."

In line with the transaction announced by PHLY on September 22, 2015, at

delivery of the West Virginia, the shipyard sold its interest in the PSI-Crowley

joint venture with respect to that vessel to a subsidiary of Marathon Petroleum

Corporation (MPC). The shipyard has now completely divested its interests in the

PSI-Crowley joint venture.

The shipyard has commenced construction of four 50,000 dwt tankers for a

subsidiary of Kinder Morgan, Inc. and two 3,600 TEU containerships for Matson

Navigation Company, Inc.  For more information on Philly Shipyard transactions

and projects, please visit www.phillyshipyard.com.

About Philly Shipyard:

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, 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.

[HUG#2035161]