American Shipping Company ASA

Company Presentation

September 2015

Slide 1

Slide 2

Important information

This Company Presentation is current as of September 17, 2015. Nothing herein shall create any

implication that there has been no change in the affairs of American Shipping Company ASA

("AMSC" or the "Company") since such date. This Company Presentation contains forward-looking

statements relating to the Company's business, the Company's prospects, potential future

performance and demand for the Company's assets, the Jones Act tanker market and other forward-

looking statements. Forward-looking statements concern future circumstances and results and other

statements that are not historical facts, sometimes identified by the words "believes", "expects",

"predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and

similar expressions. The forward-looking statements contained in this Company Presentation,

including assumptions, opinions and views of the Company or cited from third party sources, are

solely opinions and forecasts which are subject to risks, uncertainties and other factors that may

cause actual events to differ materially from any anticipated development.

Slide 3

Agenda

Market

Company

Summary

Introduction

AMSC has 10 vessels on bareboat charters with OSG

• AMSC’s fleet (9 product tankers + 1 shuttle

tanker) are on firm Bareboat Charters to

OSG until December 2019 with evergreen

extension options

• OSG time charters the vessels to oil

majors for U.S. domestic trade (Jones Act)

• OSG is among the world’s largest tanker

shipping companies, with a large U.S.

domestic and international fleet

• OSG has emerged as a financially healthy

company and is aiming for a near-term

IPO on NYSE

• AMSC receives fixed annual Bareboat

revenue of USD ~88m + ~50% of the

profits generated by OSG under the

Time Charter contracts

Slide 4

10x tankers on Bareboat Charter to OSG at

fixed rate + profit share

OSG Time Charters the vessels to oil majors

Slide 5

Agenda

Market

Company

Summary

Introduction

Slide 6

The Jones Act has been in place since 1920 Significant financial impact gives bi-partisan support for the U.S. Jones Act

Introduction to the U.S. Jones Act

Source: Shipbuilder’s Council of America

The Merchant Marine Act of 1920, P.L. 66-261 (the

“Jones Act”) requires that goods and passengers

transported by water between U.S. ports be done in

vessels that are built in the U.S, registered under the

U.S. flag, U.S. crewed and >75% owned and controlled

by U.S. citizens

AMSC’s operation in the Jones Act market is made

possible by the lease finance exception of the Jones

Act, which permits foreign ownership of the ships under

certain conditions including that the vessels be

bareboat chartered to qualified U.S. citizen operators,

such as OSG

The U.S. Jones Act industry is comprised of those

ships that transport merchandise between U.S. ports

located in continental United States, as well as Alaska,

Hawaii and Puerto Rico

Essential feature of U.S. national security, ensuring

non- dependency of ships controlled by foreign nations

USD 14bn in annual economic output

84,000 jobs in U.S. shipyards

70,000 jobs working on or with Jones Act

vessels

Over 39,000 vessels of all sizes

representing an investment of USD

30bn

Slide 7

Trade lanes, 2014 ‘000 barrels/d ‘000 bbl’s carrying capacity

Overview of shipping trade lanes

Source: EIA, Navigistics

2 905

623

4 698

2 356

3 708

1 008

2 699

1 365

660

3,721

West Coast MSC Crude oil

7,397

Chemicals

1,631

Clean USG

6,613

Barges

Tankers

Import:

Crude: 650

Product: 1,000

Import:

Crude: 3,350

Product: 590

Import:

Crude: 1,100

Product: 175

Gulf Coast - East Coast (Lower): 570

a. Tampa: Product 310

b. Port Everglades: 210

c. Charleston/Savannah/J.ville: 50

Intra-West

Coast

Product:

180

Crude: 160

Gulf Coast -

East Coast: 330

Crude: 210

Product: 120 Corpus – Hou/New Orl

2014 Crude: 585

2015YTD Crude: 700

Jones Act trade

Int’l tankers

a

b

c

Slide 8

Oil price, Jones Act newsflow and weekly U.S. oil production

U.S. crude production – current levels relative to EIA 2020 estimates

Resilient U.S. production also with lower oil prices

Source: Company filings, EIA as of April 2015

0

20

40

60

80

100

120

14014

12

10

8

6

4

2

0

jan-16 jan-15 jan-14 jan-13 jan-12 jan-11

MMbbl/d USD/bbl US crude production

Brent price

Feb ’15: Long-term contracts in place for Philly Tankers

Oct - No v ’14: American Phoenix sold to Genesis Energy, KinderMorgan acquires 2x PTs from Crowley and SeaRiver Kodiak sold to Seacor

12

14

0

6

10

4

8

2

MMbbl/d

2020

high case

2020

low case

Current 2020

base case

148 79 58 Brent oil price, USD/bbl

Aug ’15: KinderMorgan acquires Philly Tankers for USD 568m

Slide 9

Comments US crude production and export, EIA reference case, mmbbl/d

EIA report on US crude exports implies neutral to positive impact for Jones Act trade

Source: EIA as of September 2015

Unrestricted exports will reduce the Brent / WTI

spread

- Will limit the incentive for exports

- Will shift margins from refiners to

producers and therefore likely to lead to

more modest refiner capacity growth

In a scenario with modest production growth,

US refinery capacity is likely to absorb crude

growth and change in policies is expected to

have very limited impact on actual exports

In a scenario with higher production growth, US

refiner capacity is not expected to absorb all

crude growth. Exports are estimated to grow but

crude for domestic trade is expected to grow

also positive for Jones Act market

Production Export Dom.

trade

10.6

0.6

Production

9.0

0.6

0.5

9.5

10.6

Dom.

trade

10.0

Dom.

trade

Export

9.9

Export Production

Current level 2020 restricted exports

2020 unrestricted exports

Potential volumes for

Jones Act trade

Limited actual exports expected

despite loosening of regulation

Slide 10

Incremental vessel demand from 2015 Comments

Strong market despite significant oil price volatility

Source: Arctic Securities

17 vessels of incremental demand through 2020

Primary driver for growth remains crude trade

- US Gulf to US East Coast trade still open,

but increased competition from imports

Products trade also expected to continue

growing on stronger US demand (gasoline)

Lower oil price limits demand for US GoM

shuttle tanker trade

Upside on Chemicals trade as incremental

petchem plants set to start in 2016-2018 1

2

-1

2 2 21

2

3

45

6

1

22

22

2

2

23

22

2

2

46

4

54

0

0

1 1

1 1

7

12

1415

17 17

-2

0

2

4

6

8

10

12

14

16

18

2015 2016 2017 2018 2019 2020

# o

f 46,0

00dw

t vess

el equiv

ale

nts

Other/Chemicals Product USGC - USEC Crude/Product USWC

Crude USGC-USGC Crude USGC-USEC Shuttle GoM

Slide 11

Yard delivery schedules Vessel age since delivery

Only 2 yards deliver tankers. Most NB’s have been chartered – vessel age implies further scrapping

Source: Navigistics

2015 2016 2017 2018 Yard 2020 2021

Tote container 2

Vessel

Seacor PT 2

Seacor PT 1

Kinder Morgan PT5

Kinder Morgan PT4

Kinder Morgan PT3

Matson container 2

Matson container 1

Philly Tankers PT4

Philly Tankers PT3

Philly Tankers PT2

Philly Tankers PT1

Seacor PT 3

AKPS Crowley PT3

AKPS Crowley PT2

AKPS Crowley PT1

Kinder Morgan PT2

Kinder Morgan PT1

Tote container 1

AKPS Crowley PT4

Contracted

Contracted

n/a

n/a

0

1

2

3

4

5

6

7

8

9

# vessels

1 5 10 15 20 25 30 35 40 45 47

Tankers

ATBs

Candidates for scrapping

n/a

n/a

Slide 12

AMSC; a modern fleet acquired at a low cost… …providing low break-even costs

AMSC with relative cost advantage vs rest of JA fleet

Notes: 1) Based on Philly Tankers 2) Based on newbuild cost for the tankers delivered to American Petroleum Tankers (Golden State excluded due to cost overrun) 3) New regulation adds NOx emission requirement that estimated will increase cost to USD 145-150m 4) Based on total consideration for 9 vessels, including additional expenses incurred by KinderMorgan for taking delivery Source: Company materials

134 2)

142

134 1)

110

157

130 4)

135

148 3)

New

regulation

Newbuild prices Transaction values Cost

Philly Tankers

American Phoenix

Delivery Year

# vessels

‘06-11

10

n/a

‘09-10

4

n/a

‘16-17

4

n/a

‘12-13

2

Apr ‘14

‘09-10 ‘15-16

9

Dec ‘13

‘16-17

4

Aug ‘15

Trx date

‘12

1

Oct ‘14

Philly Tankers implied EV/vessel with contract

Philly Tankers EV/vessel without contract (newbuild price)

Average

n/a

n/a

n/a

0

45,000

25,000

40,000

35,000

30,000

Bareboat costs

USD/d

10.5% 11.0% 10.0% 9.5% 9.0% 8.5% 8.0% AMSC

Annual bareboat costs given various total capital IRRs with newbuild cost @ USD 134m

Slide 13

Fleet overview Industry consolidation ramping up

AMSC second largest tanker owner; industry consolidation ramping up

Notes: 1) Purchase price and additional investment required by KinderMorgan in order to take delivery of the newbuildings

* Articulated Tug Barge

Source: Navigistics, Company filings

1

1

3

7

10

3

4

1

1

1

1

2

1

3

9

3

4

4

6

5

10

17

1

4

Plains Resources

ATBs * (total of 42)

Tankers (total of 31)

Newbuild tankers (total of 16)

Newbuild ATBs (total of 8) Dec 2013: Kinder Morgan acquired 4

existing and 5 newbuild tankers from

AMPT for a total transaction value of

USD 1.2bn 1)

Nov 2014: Kinder Morgan acquired 2

product tankers from Crowley for a

consideration of USD 270m

Aug 2015: Kinder Morgan acquired

Philly Tankers, previously majority owned

by AKPS for a total transaction value of

USD 568m

April 2014, Crowley acquired profit-

share interests in 2 vessels from AKPS

for a total transaction value of USD 40m

Oct 2014: Genesis Energy acquired a 2-

year old tanker for USD 157m

Slide 14

Agenda

Market

Company

Summary

Introduction

Slide 15

T/C contract coverage (ex. options) Average TC rates on AMSC’s vessels

Time Charters with staggered expiry – higher rates expected at contract renewals

2015 2016 2017 2018 Customer Vessel

Tampa

Boston

Martinez

Nikiski

New York

Long Beach

Houston

Los Angeles

Texas City

Anacortes

AMSC earns a fixed BB payment of USD 88m / year + profit split

OSG holds vessels until 2019, with evergreen extension options thereafter

Contract to 2025

56

54

52

50

60

58

62

Q1 2014 Q3 2014

USDk/d

Q2 2014 Q4 2014 Q1 2015 Q2 2015

5.5

26.7

21.6

53.8

Slide 16

Illustration of the OSG profit share arrangement: Q2 2015 financials, USDm

Attractive and growing profit share

Notes: 1) Market rate not adjusted for utilisation Source: American Shipping Company

TCE hire BBC hire OPEX, profit layer to OSG

and dry-dock provision Profit to share - - =

AMSC is currently generating profit share above market TC rates of approx. USD

55k/d 1)

61,265 1) (23,736) (29,341) 6,044 - - =

US

D/d

U

SD

m

Recent market rates

Slide 17

Illustration of AMSC cash-flow ex. profit split Illustration of AMSC dividend potential at various long term TC rates 1) incl. profit split

Low-risk cash-flow profile with significant upside

Notes: 1) Assumes 96.5% utilization of AMSC’s fleet and cash-flow components as shown on the left hand side

51

15 22

88

25

Cash-

flow to

equity

Bond

debt

interest

New

bank

debt

servicing

SG&A

3

DPO avg

2015-18

4

Base BB

revenue

Quarterly

dividend @

USD

0.103/share

1835

44

88

9

2653

Average long term TC rate, USD/d

85,000

0.310

80,000

0.273

75,000

0.237

70,000

0.201

65,000

0.164

60,000

0.128

Quarterly dividend potential USD/share Profit share (50%)

BB-revenue

Slide 18

Overview of AMSC’s refinancing AMSC’s debt repayment profile, USDm

Recent bank debt refinancing at attractive terms

USD 500m bank debt refinancing agreed in

June 2015

- USD 350m tranche with BNP Paribas,

Credit Agricole, SEB and Wells Fargo

- USD 150m tranche with CIT Maritime

Finance

Average weighted tenor: 6 years

Average weighted interest cost: Libor + 320 bps

margin

Total annual installments: USD 32 million

212

358

323232

32

2020

and later

2017 2019 2016 2018

244

New bank debt

Bond

Slide 19

DPO explained Split of bareboat rate for PT 1-5 first 7 years, USDk/d

Estimated yearly DPO payments to AMSC, USDm

DPO mechanism adds cash flow to AMSC

DPO = “Deferred Principal Obligation”

OSG pays a reduced cash rate on the first 5

vessels for 7 years, accruing up to USD 7m on

each vessel

- Originally structured to reduce OSG’s

cash costs during the startup period

- Structured as a loan from AMSC to OSG

Payable to AMSC after 7 years, over 18 years

including interest @ 6.06%

- Due in full if OSG does not extend the

charter after the initial term

Full cash effect for AMSC from Q3 2015

Cash rate

DPO rate

23.5

20.4

3.1

0.3

2032

1.2

2031

2.1

2030

2.2

2018

3.7

2017

3.8

2016

3.9

2015

3.3

2014

1.4

2033

Slide 20

AMSC management team AMSC board of directors

Lean organization with experienced management team and board of directors

Pål Lothe

Magnussen

President /

CEO

President and CEO from January 2015 (CFO since

2014)

Previously: Director / Investment Banking Division /

DNB Markets, Vice President / Corporate Banking

Shipping and Offshore / DNB with experience from

New York, Singapore and Oslo

MBA from Columbia University, MSc. from the

Norwegian School of Management

Morten

Hofstad

CFO

CFO from July 2015

Previously: Investment Director / Converto, Director

/ Glitnir, Corporate & Investment Banking,

Controller / Bourbon Offshore

MSc. from the Norwegian School of Economics

and Business Administration (NHH) and ITAM

Leigh

Jaros

Business

Controller /

Finance

Manager

Controller in AMSC from July 2008 and CFO July

2011 – May 2014

Previously: +10 years corporate financial

experience including financial reporting, analysis

and budgeting. Ms. Jaros was employed by Aker

Philadelphia Shipyard as its Accounting Supervisor

prior to joining AMSC.

BSc in Finance and Economics from West Chester

University

Anette

Malm

Justad

Chairman

Board member since December 2007

Previously: CEO / Eitzen Maritime Services and

various positions in e.g. Yara International, Norgas

Carriers / IM Skaugen and Norsk Hydro

MSc. In Technology Management from

MIT/NTH/NHH in addition to MSc in Chemical

Engineering from NTH

Peter D.

Knudsen

Board

Member

Board member since March 2012

Previously: CEO / Jason Shipping, CEO / Eitzen

Maritime Services and various positions in

Christiania Bank, Nordea Bank and GIEK and

others

MBA from Oslo Business School / Arizona State

University

Kristian

Røkke

Board

Member

Board member since December 2014 and CEO in

Akastor

Previously: President & CEO of Aker Philadelphia

Shipyard

MBA from the Wharton School, University of

Pennsylvania

Slide 21

Agenda

Market

Company

Summary

Introduction

Slide 22

Highlights Comments

Investment highlights

U.S. crude production has held up despite lower oil prices

Vessel acquisitions by players deeply embedded in the U.S. petroleum

transport shows that shipping remains a competitive alternative

Recent long term Time Charter rates made at attractive levels

LOW RISK BASELINE

DIVIDEND WITH UPSIDE

POTENTIAL

AMSC is the second largest Jones Act product tanker owner

AMSC’s modern fleet built at cost substantially below newbuilding

prices, providing lowest break-even cost of all modern tankers

Attractive USD 500m bank debt refinancing recently committed

Current quarterly dividend of $ 0.103/share with strong support in fixed

Bareboat revenue

Ambition to grow dividend level as Time Charter contract renewals

provide substantial upside through profit share

LEADING MARKET

POSITION

ATTRACTIVE U.S. JONES

ACT MARKET