Philly Shipyard announces TOTE Maritime as its partner under the previously disclosed Letter of Intent to build up to four new containerships

  • August 17, 2017

Reference is made to a release today by Saltchuk where the company announced its plan to expand its domestic shipping services to Hawai’i under its TOTE Maritime brand (TOTE). Philly Shipyard, Inc. (PSI), a wholly-owned subsidiary of Philly Shipyard ASA (Oslo: PHLY), is a part of this venture and can confirm that the previously announced Letter of Intent (LOI) for the construction and sale of up to four new, cost-efficient and environmentally friendly containerships for the Hawai’i trade that was entered into between PSI and TOTE.  (Reference: Stock exchange release dated July 21, 2017).

TOTE is a leading transportation and logistics company, overseeing some of the most trusted companies in the U.S. domestic trade. TOTE Maritime Alaska and TOTE Maritime Puerto Rico bring a focus on reliability and service to their respective markets and operate the most environmentally friendly cargo fleet in the United States.

“Philly Shipyard is very excited to have TOTE as its partner under the LOI and fully supports the efforts to introduce new vessels into the Hawai’i containership trade to replace aged ships in time to meet new environmental regulations,” remarked Steinar Nerbovik, PSI’s President & CEO.

As previously announced, PSI has already begun construction of the vessels outlined in the LOI to support their optimal delivery dates. 

 

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 27 vessels in its nearly 20 year history, including four vessels for use in the Hawai’i containership trade which were delivered in 2003-2006. Currently, Philly Shipyard is building one 50,000 dwt tanker for a subsidiary of Kinder Morgan, Inc. (Hull 028) and two 3,600 TEU containerships for use in the Hawai’i trade for Matson Navigation Company, Inc. (Hulls 029 and 030).  As discussed above, Philly Shipyard has also initiated construction of up to four containerships for use in the Hawai’i trade for its own account (Hulls 031-034).  For more information on Philly Shipyard transactions and projects, please visit www.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.