AMSC ASA (Hold, TP: NOK47.50) - Waiting for EGM approval
We believe the sale of its Jones Act tanker fleet is likely to be approved at September’s EGM, which would result in NOK37/share in cash to the company, prompting a considerable dividend and still leaving a sizeable ‘war chest’ for future projects with a newfound flexibility in AMSC’s post-Jones Act era. As we identify the opportunities and await the conclusion, we have downgraded to HOLD (BUY) and cut our target price to NOK47.5 (52).American Shipping Company is a U.S. ship owning and lease finance company with focus on building a premier ownership position. Through its subsidiaries, Co. is engaged in the purchase and bareboat chartering of product tankers, shuttle tankers, and other vessels to operators and end users in the Jones Act market. Co. owns ten modern 46,000 dwt MR product tankers that were built by Aker Philadelphia Shipyard. All ten vessels are on long term fixed rate bareboat charters with Overseas Shipholding Group Inc. Co. also holds an equity stake in Philly Tankers AS/LLC, founded in 2014 to build two new product tankers at Aker Philadelphia Shipyard.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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