Aker Philadelphia Shipyard ASA (AKPS) is gaining additional product tanker newbuild orders following the start up of Philly Tankers AS, a new Jones Act tanker company which was founded today. American Shipping Company ASA (OSE: AMSC) has invested USD $25 million and AKPS will invest USD 58.5 million for 20 and 54 percent respective stake in the new venture. Apollo Global Management (NYSE: APO) and other U.S. institutional investors will invest USD $34 million for the remainder 26 percent of the company.
AMSC notes Philly Tankers will be a pure play exposure to the Jones Act market with ownership of two eco-design product tanker newbuilds to be delivered by AKPS in Q4 2016 and Q1 2017 and with options for two additional newbuilds for delivery in Q3 and Q4 2017. The two LNG-ready 50,000 dwt tankers will be based on the proven Hyundai Mipo Dockyard design and come at a total contract price of USD $250 million.
The new company will be listed on the Norwegian OTC by mid-July 2014, with a target of a U.S. listing by mid 2016.
“The surge in US shale oil production is continuing and AMSC believes that modern product tankers offer an attractive value proposition in this buoyant market,” says Dag Wittusen, CEO of AMSC. “We think Philly Tankers is an interesting opportunity for AMSC considering the possibilities ahead. We are therefore delighted to be joining AKPS and leading U.S. financial investors who share our ambition of pursuing accretive growth opportunities in the Jones Act market”.
Philly Tankers’ technical and crew management is to be outsourced.