Philly Shipyard — Regulatory Filings 2016

Apr 15, 2016

Philly Shipyard Delivers Third Next Generation Product Tanker to Crowley

Philly Shipyard Delivers Third Next Generation Product Tanker to Crowley

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

ASA (Oslo: PHLY), today delivered the Louisiana, the third of four next

generation 50,000 dwt product tankers that it is building for Crowley Maritime

Corporation (Crowley). The 600-foot tanker has a carrying capacity of 14.5

million gallons of crude oil or refined products.

This delivery is the 23(rd) 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).

"We are proud to deliver another Philly-born tanker, the shipyard's fifth tanker

for Crowley and 23(rd) vessel in total," remarked Philly Shipyard's President

and CEO Steinar Nerbovik.  "On behalf of the men and women who built her, we are

honored knowing that the Louisiana will be another safe and quality addition to

Crowley's fleet that will serve its mariners and our nation's waterways for

decades to follow."

The remaining product tanker for Crowley is currently under construction and has

a planned delivery in Q3 2016.  Additionally, the shipyard has started

construction of four 50,000 dwt tankers to be delivered to a subsidiary of

Kinder Morgan, Inc. The shipyard also has begun construction of two 3,600 TEU

containerships for Matson Navigation Company, Inc.

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

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

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

Corporation (MPC).

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#2004153]