Aker Philadelphia Shipyard ASA (AKPS) continued to make progress on its tanker series for American Shipping Company ASA (AMSC) and delivered AKPS’ eleventh vessel on 11 June 2009. For the quarter ended 30 June 2009, the shipyard recorded operating revenues of USD 55.0 million and EBITDA (earnings before interest, taxes and depreciation and amortization) of USD 4.5 million. Revenues for the quarter ended 30 June 2009 represented a 23% decrease compared to revenues of USD 71.1 million for the quarter ended 30 June 2008. EBITDA for the quarter ended 30 June 2009 increased 7% compared to the second quarter 2008 EBITDA of USD 4.2 million. The lack of financing for the two shuttle tankers in the tanker series and the delay in implementing the terms of the non-binding settlement agreement between AMSC and Overseas Shipholding Group (OSG) has increased the counterparty risk faced by AKPS. For more details, see the “Risks” section below.

OSLO / PHILADELPHIA (5 August 2009) –
At the end of the second quarter Aker Philadelphia Shipyard had delivered seven of the twelve tankers in the series for American Shipping Company (AMSC). The delivery of the seventh vessel in the series on 11 June 2009 demonstrates the continued progress that has been made by the shipyard related to cost containment and other operational controls.

In accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, Aker Philadelphia Shipyard is recognizing the last nine tankers of the twelve-tanker order as one single project. As such, revenue and expense are being recognized on a total project basis. As of 30 June 2009, Aker Philadelphia Shipyard is approximately 61% complete with the project.


Enclosed please find the entire Q2 2009 report.