American Shipping Company ASA j

A Pure Play Jones Act Company

New York, 12-13 December 2013

Important information

Slide 2

This Company Presentation is current as of 12 December 2013. 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..

Agenda

Slide 3

Company

Market

AMSC / OSG

AMSC going forward

Company overview

American Shipping Company ASA

Slide 4

• Established in 2005

Ordered series of 10 MR product tankers at

Aker Philadelphia Shipyard

• All vessels on fixed bareboat charter to OSG

until YE 2019, with evergreen renewal

options

• OSG charters the vessels out to oil majors,

typically on 3-5 year time charters

• AMSC receives fixed BBC revenue of USD 88m /

year + 50% profit share

• Headquartered in Oslo, Norway with leasing

subsidiaries in Pennsylvania

• Listed on Oslo Stock Exchange

Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13

0

5

10

15

20

25

30

35

40

45

50

Source: FactSet Prices

Share price development

Major shareholders

Company

Equity issue just completed will strengthen AMSC’s balance sheet and support an attractive dividend profile

Slide 5

Capital structure based on USD 167m equity issue,

USDm Transaction overview

• New equity of almost USD 170m

− USD 120m in cash proceeds from private placement

− USD 29m of subordinated debt converted

− Subsequent offering of around USD 18m

• The equity issue will give a robust capital structure

facilitating a subsequent refinancing

− Equity ratio increased from 7% to around 20%

− Obtained option to extend the maturity of the NOK

Bond to 2021, removing a potential hurdle to

refinancing the bank debt in 2015-16

• Attractive investment vehicle

− Increased market cap and improved liquidity

− Quarterly dividends of USD 0.10/share already from Q2

2014, increasing with cash profit share payments after

Q4 2015

− Unique exposure to pure play Jones Act company in a

rising market

Notes: 1) AMSC market capitalisation based on a stock price of NOK 35.7 and a USD / NOK rate of 6.1 as of 10 Dec 2013 Source: AMSC, Arctic Sec. / Pareto Sec. research

Q3 ’13 pro-forma

1,009

681

328

Q3 ’13 reported

1,009

848

161

Net debt

Equity 1)

Company

Lean organisation with highly experienced management team

Slide 6

Annette

Malm

Justad

Chairperson

• Member of AMSC’s Board of Directors since December 2007

• Board member of PGS, Awilco LNG, Store Norske Kulkompani and Small Turbine Partners

• 2006 – 10: CEO of Eitzen Maritime Services ASA

• Previously: Various positions within Yara International ASA, Norgas Carriers/IM Skaugen ASA,

and Norsk Hydro ASA

• Master degree in Technology Management from MIT (Sloan School)/NTH/NHH in addition to a

MSc in Chemical Engineering from NTH

Dag

Fasmer

Wittusen

President

/ CEO

• CEO of AMSC from July 2011

• Previously: Special advisor to Aker ASA and Board Member of AMSC since 2009, in addition to

numerous executive positions within the Aker Group, including CEO of Aker Finans AS,

Executive Director of TH Global (ex Kvaerner PLC), member of various Aker boards, Executive

Vice President of Aker RGI and Managing Director of RGI. Also co-founder of investment banking

group Orkla Finans, Vice President of Eksportfinans and Loan Officer at the World Bank

• BA from Brown University and MPA from Princeton University

Leigh

Jaros

CFO /

Controller

• Controller in AMSC from July 2008 and CFO from July 2011

• Previously: +10 years of progressively responsible 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

Company

Agenda

Slide 7

Company

Market

AMSC / OSG

AMSC going forward

Shale oil is the game changer

Slide 8

Shale oil production forecast 1) Seaborne Frac Oil out of Corpus Christi port, Texas

3

1

5

8

7

6

9

4

2

0

MMbbl/d +114% increase in

production in 2013-24

2030 2025 2020 2015 2010 2005 2000

350

300

250

200

150

100

50

0

450

400

Jul-

13

Jan-

13

Jul-

12

Jan-

12

Kbbl/d

Jul-

11

Jan-

11

Notes: 1) Includes shale oil and tight liquids, as defined by Rystad Energy Source: Port of Corpus Christi, Rystad Energy, Arctic Sec. / Pareto Sec. research

Market

Increased refining in the US Gulf drives demand for Jones Act tanker vessels

Slide 9

Continued shift of U.S. refining to Gulf Coast further

increases demand for Jones Act tanker vessels Price differential; Brent vs. Louisiana Light sweet crude

Eagle

Ford GuM

Permian

US oil fields

% of crude refinery capacity %

Bakken

19% 28%

10%

Source: MJLF and Associates as of Sep 2013, EIA, Navigistics Consulting ©, Arctic Sec. Equity Research

Bluewater

Pipeline

Barges Louisiana Light sweet crude

is trading almost USD 20

per bbl lower than Brent

Market

Overview of the Jones Act product tanker market

Slide 10

# of Jones Act tanker vessels by owner

Notes: 1) OSG ATB fleet includes 2 lightering vessels, which are illustrated separate ly in OSG’s own fleet reports Source: Navigistics Consulting ©, Arctic Sec. / Pareto Sec. research

1

1

4

4

5

10

3

4

2

6 3

9 5

8 6

7 4 3

12 10 1) 2

19 17 2

Newbuild ATBs

Newbuild tankers

Tankers

ATBs

Market

Fleet size has been reduced on account of OPA 90 – ageing of present fleet implies further scrapping

The Jones Act tanker fleet has been declining Vessel age since delivery

30

25

20

15

10

5

0

50

45

40

35

2009 2008

# vessels

in fleet

2013 2012 2011 2010

The fleet has been reduced

as a result of the Oil Pollution

Act of 1990, which requires

all vessels with single hulls

be phased out by end of

2015

0

1

2

3

4

5

6

7

8

9

0 5 10 15 20 25 30 35 40 45

# vessels Tankers

ATBs

Notes: 1) Some of these were converted to double hulls several years after delivery Source: Navigistics Consulting ©, Arctic Sec. Equity Research

A total of 22 vessels

were built more than 28

years ago 1)

Slide 11

Market

Shipyard capacity is filling up, limiting the supply of new vessels

Slide 12

2014 2015 2016 2017 2018 Yard

Seacor PT 3

Seacor PT 2

Seacor PT 1

APT 4

APT 3

APT 2

APT 1

Vessel

Seacor option

Matson container 1

Crowley options

Crowley PT4

Matson container 2

Crowley PT2

Crowley PT1

SeaRiver 2

SeaRiver 1

Crowley PT3

Only two US shipyards – NASSCO and Aker Philadelphia Shipyard – have capability to

build MR size product tankers at competitive prices and timetables

Delivery schedule of new vessels, US Jones Act tanker

market Vessel age across Jones Act segments

33

2929

15

Dry bulk Container Ro-ro Tanker / ATB

Yards may build more container,

ro-ro and bulk vessels than those

already ordered – this would

further reduce yard availability for

product tankers

Source: Navigistics Consulting ©, United States Maritime Administration (MARAD) / IHS / Clarksons, Arctic Sec. / Pareto Sec. research

Market

The product tanker market is expected to remain tight in the coming years

0

10

20

30

40

50

60

70

80

90

100

USDk/day

’20e ’18e ’16e ’14e ’12 ’10 ’08 ’06 ’04 ’02 ’00

Favorable supply/demand metrics Daily Time Charter Rate Trend for Jones Act Tankers

Source: Navigistics Consulting © as of Aug 2013, Arctic Sec. / Pareto Sec. research Slide 13

Market

Increase in shale oil

production

Longer shipping

distances

Limited newbuild

capacity

Agenda

Slide 14

Company

Market

AMSC / OSG

AMSC going forward

All ten AMSC vessels are on evergreen bareboat charters with OSG

Slide 15

Long term

bareboat charters

50 / 50 profit split

with AMSC

Long term time

charters

• OSG time charters the vessels to

end user oil majors for Jones Act

trade

• AMSC receives fixed annual BBC of

USD 88 m + 50% of the profits

generated by OSG under the TCs

• OSG is in Chapter 11, but continues

to service AMSC punctually

• TC renewal options that OSG has

with their clients cannot be

exercised while OSG is in Chapter

11

• Significant upside potential through

an attractive profit sharing

agreement in tight Jones Act market

Currently in

Chapter 11

AMSC/OSG

The 10 vessels are leased bareboat to OSG, which has Time Charters with large US oil companies

2013 2014 2015 2016 2017 2018 Customers Vessel

Tampa

Anacortes

Martinez

Nikiski

Boston

Texas City

New York

Los Angeles

Long Beach

Houston

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

Higher TC rates are expected for OSG at TC renewals

Rebuild to shuttle

Notes: 1) TC rates for Aug 2013. Texas City TC rates are based on June 2013 figures, due to drydocking in July-Aug 2) Navigistics Consulting © estimate of 2013 Jones Act tanker market rate Source: OSG Form 8-K as of Sep 20, 2013

OSG customer fixed contract length and customer OSG current TC rates1) vs

market rates

53

58

65

53

65

47

47

47

47

65

2013 market rate @ USD 70k/d 2)

Current TC rates are

escalated over time

and different rates

apply for option

periods

Option period

Option period

Option period

Option period

Tampa to enter shuttle tanker service

Option

Slide 16

AMSC/OSG

TCE hire BBC hire OPEX, Profit layer

to OSG and other Drydock provision Profit to share(2)

Outline of the OSG profit share arrangement: Q2 2013 financials

Slide 17

4

52

1

24

22

- - - =

Source: AMSC Q3 2013 report Note : 1) 2013 full year estimate 2) Balance of profit share overhang will be paid down through generated profit sharing going forward. AMSC is likely to repay any remaining profit share overhang in Q4 2015.

2013 breakeven TC rates is approx. USD 49k/d (1)

Non-cash; currently

booked against profit

share overhang balances

US

Dk

/ d

ay

Profit Share Overhang Ending balance per

Q2 13

Early month shortfall 6

+ OSG credit 26

= Total Profit Share Overhang 32

AMSC/OSG

AMSC EBITDA sensitivity to time charter rates (Illustrative)

Slide 18 Note: Assuming no profit share overhang, 100% utilization and estimated 2013 break even rates of USD 49k / day

85 85 85 85 85 85 85

11 20 29 38 4757 66

151

85,000

Profit share

Bare boat

65,000

114

60,000

105

55,000

96

80,000

142

75,000

132

70,000

123

An USD 5k/d increase in average fleet time charter rate means an EBITDA increase of around

USD 9m for AMSC

Average TC rate for the ten vessels

EB

ITD

A (U

SD

millio

ns)

AMSC/OSG

Agenda

Slide 19

Company

Market

AMSC / OSG

AMSC going forward

«Best pure play in rising Jones Act market»?

Slide 20

AMSC will continuously assess accretive growth opportunities

Quarterly

dividends of USD

0.10 per share

Increased

dividends

through cash

profit share

Investigate MLP-

structure /

secondary U.S.

listing

Q2 14 -

2016-

2016-

Unique position in rising market Attractive dividend policy going forward

• Modern asset base

• Attractive cash flows

• Strong market fundamentals

• Increasing freight rates

Going forward

Q&A