Aker Philadelphia Shipyard Sells Interest in Tanker Joint Venture with Crowley

Aker Philadelphia Shipyard ASA (OSLO: AKPS) says that its wholly-owned U.S. subsidiary, Aker Philadelphia Shipyard, Inc. (APSI), has entered into definitive agreements Marathon Petroleum Corporation for the buy-out of APSI’s curiosity in its three way partnership with Crowley Maritime Corporation.

The three way partnership with Crowley was established in 2013 with the intention of working and chartering 4 Jones Act certified 50,000 dwt product tankers now underneath building at Aker Philadelphia Shipyard. The transaction is predicated on an enterprise worth of $150 million per vessel.

The buy-out of APSI’s curiosity with respect to every vessel will happen at its supply from APSI. The supply of all 4 vessels is anticipated from Q3 2015 to Q3 2016.

APSI says it expects to acknowledge a pre-tax acquire of roughly $10 million per vessel from the transaction.

APSI will make an funding within the vessels throughout their building, however will not keep the beforehand deliberate long-term funding within the vessels post-delivery, which was anticipated to be roughly $110 million within the combination.

“This transaction is an important part of AKPS’s plan to divest its shipping investments and realize the value created for shareholders,” remarked Kristian Rokke, Chairman of AKPS. “We are proud of what we have accomplished together with Crowley under the joint-venture and look forward to serving both Crowley and Marathon Petroleum as shipbuilders into the future.”

The new 50,000 DWT product tankers are primarily based on a confirmed Hyundai Mipo Dockyards (HMD) design incorporation gas effectivity applied sciences, versatile cargo functionality, and the newest regulatory necessities. The vessels will even be constructed with consideration for the usage of LNG gas sooner or later.

APSI has additionally begun building of the primary two of 4 extra 50,000 dwt tankers for a subsidiary of Kinder Morgan, Inc., that are deliberate to be delivered between November 2016 and November 2017. The shipyard additionally has contracts for 2 3,600 TEU containerships for Matson Navigation Company, Inc., that are deliberate to be delivered in 2018.

On July 16, 2015, APSI introduced that it intends to alter its title to Philly Shipyard by the tip of the 12 months, pending shareholder approval.