Highlights
-
Philly Shipyard and a leading
Jones Act operator have executed a Letter of Intent and begun
exclusive negotiations of definitive agreements
-
The Letter of Intent
contemplates the construction and sale of two firm plus two option
(2+2) state-of-the-art, cost-effective and environment-friendly
vessels for the Hawaii containership trade
-
Philly Shipyard has already
initiated construction of these vessels to support their optimum
delivery dates
Philadelphia,
PA (July 21, 2017) -Philly Shipyard, Inc. (PSI), a
wholly-owned subsidiary of Philly Shipyard ASA (Oslo: PHLY), is
pleased to announce that it has entered into a Letter of Intent
(LOI) with a blue chip U.S. shipping operating company for the
construction and sale of up to four new, cost-efficient and
environmentally friendly containerships with planned deliveries in
2020 and 2021. The LOI marks the entry into the next phase in the
transaction process, building on ongoing discussions between the
parties. The identity of the shipping operating company is not
being disclosed at this time.
Under the terms of the LOI, it is
contemplated that the shipping operating company will make an
initial order for two 3,700 TEU containerships and receive options
to order two additional sister ships. It is intended that these
vessels will service the containership trade between the U.S. West
Coast and Hawaii.
PSI has already begun construction
of the vessels contemplated by the LOI in order to support their
optimal delivery dates. These vessels are the continuation of the
series of two similar 3,600 TEU "Aloha Class" containerships
currently under construction at PSI for the Hawaii
trade-lane.
The transaction contemplated by
the LOI is subject to agreement by the parties on definitive
documents and fulfillment of certain closing conditions. The LOI
provides for a period of exclusivity to negotiate and complete this
transaction.
About Philly
Shipyard:
Philly 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. Philly Shipyard is listed
on the Oslo Stock Exchange and is majority-owned by Aker Capital
AS, which in turn is wholly-owned by Aker ASA. Aker is a Norwegian
industrial investment company that creates value through active
ownership. Aker's investment portfolio is concentrated on key
Norwegian industries that are international in scope: oil and gas,
fisheries and biotechnology, and marine assets. Aker's industrial
holdings comprise ownership interests in Aker Solutions, Kvaerner,
Aker BP, Aker BioMarine, Ocean Yield and Akastor.
Philly Shipyard has delivered 26
vessels in its nearly 20 year history, including four vessels for
use in the Hawaii containership trade which were delivered in
2003-2006. Currently, Philly Shipyard is building two 50,000 dwt
tankers for a subsidiary of Kinder Morgan, Inc. (Hulls 027 and 028)
and two 3,600 TEU containerships for use in the Hawaii trade for
Matson Navigation Company, Inc. (Hulls 029 and 030). As discussed
above, Philly Shipyard has also initiated construction of up to
four 3,700 TEU containerships for its own account (Hulls 031-034).
For more information on Philly Shipyard transactions and projects,
please visitwww.phillyshipyard.com.
Important
information about this release:
This information is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.
This press release includes and is based, inter
alia, on forward-looking information and statements that are
subject to risks and uncertainties that could cause actual results
to differ. Such forward-looking information and statements are
based on current expectations, estimates and projections about
global economic conditions, the economic conditions of the regions
and industries that are major markets for Philly Shipyard ASA and
its subsidiaries and affiliates (the "Philly Shipyard Group") lines
of business. These expectations, estimates, and projections are
generally identifiable by statements containing words such as
"expects", "believes", "estimates," "anticipates," "intends" or
similar expressions. Important factors that could cause actual
results to differ materially from those expectations include, among
others, economic and market conditions in the geographic areas and
industries that are or will be major markets for the Philly
Shipyard Group's businesses, oil prices, market acceptance of new
products and services, changes in existing laws and governmental
regulations, interest rates, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time.
Although Philly Shipyard ASA believes that its expectations and the
information in this press release were based upon reasonable
assumptions at the time when they were made, it can give no
assurance that those expectations will be achieved or that the
actual results will be as set out in this press release. Neither
Philly Shipyard ASA nor any other company within the Philly
Shipyard Group is making any representation or warranty, expressed
or implied, as to the accuracy, reliability or completeness of the
information in the press release, and neither Philly Shipyard ASA,
any other company within the Philly Shipyard Group nor any of their
directors, officers or employees will have any liability to you or
any other persons resulting from your use of the information in the
press release. Philly Shipyard ASA undertakes no obligation
to publicly update or revise any forward-looking information or
statements in the press release, other than what is required by
law.