American Shipping Company ASA - Fourth quarter 2018 results
Lysaker, 28 February 2019, American Shipping Company ASA (“AMSC” or the “Company”) announces results for fourth quarter ending 31 December 2018.
HIGHLIGHTS
- Overseas Shipholding Group (“OSG”) exercised options to extend the bareboat charter agreements for all nine of AMSC’s vessels up for renewal
- Stable Q4 bareboat revenue of USD 22.1 million and backlog of secured bareboat revenue of USD 302.7 million with average weighted tenor of 3.4 years
- Normalized EBITDA for Q4 of USD 22.2 million
- Adjusted net profit for Q4 of USD 2.9 million
- Favorable WTI Houston vs Bonny Light/Brent spreads leading to strong U.S. Northeast crude trade
- Increased level of time charter fixtures at rates in the 55,000 – 58,000 per day range for modern tankers
- Towards the end of the quarter, all Jones Act tanker vessels were fixed on time charter contracts
- Declared Q4 dividend of USD 0.08 per share, in line with previous guidance and backed by the Company’s contracted cash flow
AMSC CEO, Pål Magnussen comments, “We are pleased to see the entire Jones Act tanker fleet being fixed on time charters during the final quarter of 2018. The combination of an ageing Jones Act tanker fleet, the lack of yard availability for newbuilds as well as increased demand from the U.S. Northeast crude trade is likely to put additional upward pressure on time charter rates going forward. We believe the fleet is ideally positioned to capitalize on rising time charter rates as OSG has not committed to time charters on most of our ships beyond December 2019.”
The full report is attached, along with the Q4 presentation.
Company contacts:
Pål Magnussen, Chief Executive Officer
Morten Bakke, Chief Financial Officer
Leigh Jaros, Business Controller / Finance Manager
+1 484 880 3741
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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