American Shipping Company ASA Presentation of Q4 2019 28 February - PowerPoint PPT Presentation

American Shipping Company ASA Presentation of Q4 2019 28 February 2020

Important information  Nothing herein shall create any implication that there has been no change in the affairs of American Shipping Company ASA ("AMSC" or the "Company") as of the date of this Company Presentation. 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.

Fourth Quarter 2019 Highlights  Adjusted net profit of USD 2.4 million*  Normalized EBITDA** of USD 22.2 million • DPO of USD 0.9 million  OSG exercised one of its perpetual 3 year extension options for 4 vessels, moving BBC expiries to Dec 2023  Firm comittment for a USD325m senior secured refinacing for 9 ships including a USD70m RCF facility  TC Rates for Jones Act Tankers reached 60,000 per day  Declared Q4 dividend of USD 0.08 per share, consistent with prior guidance • Ex-dividend date of 5 March 2020 with payment on or about 16 March 2020 • Classified as a return of paid in capital * Net profit after tax, adjusted for non-recurring items, currency fluctuations, mark-to-market of derivatives and changes to deferred tax ** Includes DPO, reported EBITDA for Q4 19 is USD 21.3 million 3

Stable, Predictable EBITDA Normalized EBITDA* (USD millions) Normalized EBITDA* per quarter (USD millions) 24 100 11 10 22 1 1 1 1 90 1 1 1 1 4 3 4 4 4 20 80 18 70 16 60 14 12 50 22 21 21 21 21 21 21 21 85 85 85 84 85 10 40 8 30 6 20 4 10 2 0 0 2015 2016 2017 2018 2019 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Profit Share DPO Reported EBITDA Profit Share DPO Reported EBITDA • Normalized EBITDA* of USD 22.2 million in Q4 19 (USD 22.2 million in Q4 18) • No profit share in Q4 19 or Q4 18 • The Q4 19 DPO of USD 0.9 was received 3 January 2020 and is therefore not reflected in the year-end accounts; the payment is included in Normalized EBITDA in the illustrations above. The DPO in Q4 18 was USD 0.9 million * Including Profit Share (except 2017 to 2019 where profit share was 0 for the full year) and DPO. Reported EBITDA for Q4 19 is USD 21.3 million 4

Fleet Deployment Overview Long-term fixed rate bareboat charters to OSG secures cash flow Vessel Firm Charter Options End users Houston BBC exp. 2022 BBC Options • AMSC’s fleet is on firm BB Charters to OSG with Long Beach BBC exp. 2022 BBC Options evergreen extension options Los Angeles BBC exp. 2022 BBC Options New York BBC exp. 2022 BBC Options • AMSC receives fixed annual bareboat revenue of USD 88 million + ~50% of the profits generated by Texas City BBC exp. 2022 BBC Options OSG under the time charter contracts Boston Exp. ‘20 BBC Options Nikiski Exp. ‘20 BBC Options • OSG time charters the vessels to oil majors for U.S domestic trade Martinez Exp. ‘20 BBC Options Anacortes Exp. ‘20 BBC Options Tampa BBC exp. 2025 Options 5

A Critical Part of Oil Majors’ Transportation Logistics Jones Act crude oil & products primary trade routes BAKKEN 3 2 Patoka, IL 5 PERMIAN Key US Oilfields EAGLE FORD Clean Pipeline 4 Crude Pipeline Barges 1 6 1 8 US GULF Jones Act Tanker Routes: 1 5 Delaware Bay Lightening (Crude)  Gulf Coast refineries to Florida and East Coast (Clean)  2 6 Shuttle tankers from deep water U.S. Gulf to Gulf Coast Refineries (Crude)  Mid-Atlantic to New England (Clean)  Crude from Corpus Christi, TX to LOOP (not shown)  3 Alaska and Intra-west coast movements (Clean/Dirty) 7  Crude from Corpus Christie and Beaumont to Northeast  4 Cross-Gulf movements (Dirty) 8  Source: Navigistics’ Wilson Gillette Report Dec 2019 6 Private & Confidential

Majority of Fleet Carry Clean Products Jones Act tanker fleet deployment by main trades (Tankers and ATBs) 2015 Dec 2019 Total capacity: ~ 20 mbbls Total capacity: ~ 23.2 mbbls MSC MSC Idle 1) Clean USG Clean USG Idle 1) Chemicals 3% 4% 6% 8% 0% Chemicals 7% 36% West Coast 17% 43% 21% West Coast 36% 20% Crude Oil Crude Oil Source: Navigistics’ Wilson Gillette Report Dec 2019 and AMSC analysis Note: 1) Idle capacity refers only to ATBs 7 Private & Confidential

Increasing Clean Volumes Into Florida Rising seaborn transport from Gulf to East Coast Gulf Coast to Florida Trade Lane Mbbls per month PADD 2 27.5 PADD 1 22.5 Mbbl 17.5 New PADD 3 Orleans Jacksonville Beaumont Houston Pascagoula Tampa 12.5 Jan‐2010 Oct‐2010 Jul‐2011 Apr‐2012 Jan‐2013 Oct‐2013 Jul‐2014 Apr‐2015 Jan‐2016 Oct‐2016 Jul‐2017 Apr‐2018 Jan‐2019 Oct‐2019 Port Everglades Corpus Christi 1 PADD 1 Receipts of Products by Tanker and Barge from PADD 3 Trendline 3.5% CAGR Sources: EIA 8 Private & Confidential

Crude Trade to East Coast stabilizing PADD 3 to PADD 1 Crude Oil Moves by Tanker and Trade lane carrying Crude from Gulf Coast to U.S. Barge Northeast 4 PADD 2 3 Boston New York Mbbl 2 Philadelphia PADD 1 Washington 1 New PADD 3 Orleans Jacksonville Beaumont 0 Houston Pascagoula Tampa Jan‐2013 Sep‐2014 Feb‐2015 Jul‐2015 Oct‐2016 Aug‐2017 Jan‐2018 Sep‐2019 Feb‐2020 Jun‐2013 Nov‐2013 Apr‐2014 Dec‐2015 May‐2016 Mar‐2017 Jun‐2018 Nov‐2018 Apr‐2019 Port Everglades Corpus Christi 6 PADD 3 to PADD 1 Movements of Crude with Tankers  East Coast volumes back to ~6 tankers, up from ~1 tanker during 2017  Volumes driven by spread in pricing of U.S. oil vs international alternatives Source: EIA, Marine Traffic and AMSC analysis 9 Private & Confidential

Oil Price Spread - Key Driver for Crude Shipping Volumes PADD 3 to PADD 1 Crude Oil Moves by Number of Crude Oil Price Spread - WTI Houston vs. Bonny Light Tanker Liftings 14 8.00 7.00 12 6.00 10 5.00 4.00 8 3.00 6 2.00 1.00 4 0.00 2 ‐1.00 0 ‐2.00 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18 Jul‐18 Aug‐18 Sep‐18 Oct‐18 Nov‐18 Dec‐18 Jan‐19 Feb‐19 Mar‐19 Apr‐19 May‐19 Jun‐19 Jul‐19 Aug‐19 Sep‐19 Oct‐19 Nov‐19 Dec‐19 Jan‐20 Feb‐20  On average 7 MR voyages per month of crude to U.S.  Crude loaded in Houston vs. West Africa needs to be Northeast refineries minimum $1.50 cheaper to be competitive for purchase by U.S. Northeast Refiners  Spread has been sufficiently wide since Aug/Sept 2017 Source: Argus and Marine Traffic 10 Private & Confidential

Fleet Reduction as Scrapping Continues Fleet profile by vessel age Considerable fleet growth in past years, but scrapping likely to bring fleet back to 2015 levels Kbbls capacity Scrap/lay up Tankers Number of vessels Projected Actual ATBs AMSC 12 30000 11 10 25000 9 2015 levels 8 Candidates for 20000 7 scrapping 6 15000 5 4 10000 3 2 5000 1 0 0 50 45 40 35 30 25 20 15 10 5 1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fleet Scrapping Source: Navigistics’ Wilson Gillette Report Dec 2019, broker reports and AMSC analysis 11

Income Statement (unaudited) Figures in USD million (except share and per share information) Q4 2019 Q4 2018 Operating revenues 22.1 22.1 Operating expenses (0.8) (0.8) Operating profit before depreciation - EBITDA 21.3 21.3 Depreciation (8.5) (8.5) Operating profit - EBIT 12.8 12.8 Net interest expense (10.3) (10.2) Unrealized gain/(loss) on interest swaps 0.1 (1.8) Profit/(loss) before income tax 2.5 0.8 Income tax expense - 0.3 Non-cash income tax benefit/(expense) 1.3 (0.8) Net profit / (loss) for the period * 3.8 0.3 Average number of common shares 60,616,505 60,616,505 Earnings/(loss) per share (USD) 0.06 0.01 *Applicable to common stockholders of the parent company 12

Balance Sheet (unaudited) Figures in USD millions 31.12.2019 31.12.2018 Vessels 678.9 711.8 Interest-bearing long term receivables (DPO) 25.3 26.7 Other non current assets - 16.4 Derivative financial assets - 2.4 Trade and other receivables 0.4 0.2 Cash held for specified uses 1.6 2.7 Cash and cash equivalents 46.3 51.1 TOTAL ASSETS 752.4 811.3 Total equity 165.0 176.1 Deferred tax liabilities 11.4 13.0 Interest-bearing long term debt 522.7 572.3 Derivative financial liabilities 0.8 - Interest-bearing short term debt 44.3 29.6 Deferred revenues and other payables 8.2 20.3 TOTAL EQUITY AND LIABILITIES 752.4 811.3 13