USA: AKPS Enters into Binding Agreements to Sell Two Product Tankers

Aker Philadelphia Shipyard ASA has announced that certain wholly owned subsidiaries of AKPS and Crowley Petroleum Services, Inc. (CPS) have entered into binding agreements which will result in the sale of two product tankers by Aker Philadelphia Shipyard, Inc. (APSI) to Crowley Tankers, LLC (CT). These vessels are designated as APSI Hulls 017 and 018. APSI has been building these vessels for its own account since 2011 and they are scheduled for delivery in August 2012 and February 2013, respectively.

AKPS, through its subsidiaries, will receive compensation for each vessel in the form of a fixed purchase price of USD 90 million at delivery and a variable component based on the vessel’s actual performance in the market. Based on current market conditions, AKPS anticipates receiving a nominal amount in excess of USD 35 million per vessel through the variable component. This amount has the potential to be significantly higher if market conditions continue to improve. The variable component is payable on an annual basis over the life of the vessel and will adjust upwards or downwards based on actual charter rates and other factors. There is no cap on the amount of the annual payment.

AKPS anticipates that the transaction will result in cumulative gains in excess of USD 25 million, recognized as each vessel is delivered, with the potential for future additional income based on the variable component.

“We are pleased to partner with a first-class owner and operator like Crowley. Both APSI and Crowley share deep commitments to run safe and efficient operations, and I am confident that this transaction will bring significant value to both parties for years to come,” said Kristian Rokke, AKPS President and CEO. “This is a major milestone for the shipyard and we are greatly appreciative of the support we have received from many, including the Commonwealth of Pennsylvania, City of Philadelphia, and Aker ASA.”

In addition to the product tankers, APSI is currently constructing the first of two contracted 115,000 dwt crude oil carriers for SeaRiver Maritime, Inc., Exxon Mobil Corporation’s U.S. marine affiliate. Both of these crude oil tankers are scheduled for delivery in 2014.

Aker Philadelphia 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. Aker Philadelphia Shipyard is a member of the Norwegian-based Aker family of global companies, leaders in global growth markets including energy technologies, energy resources, maritime technologies, seafood and marine biotechnology.

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Source: phillyshipyard, August 21, 2012