Philly Shipyard Delivers Third Next Generation Product Tanker to Crowley

Philly Shipyard, Inc. (PSI), the sole operating subsidiary of Philly Shipyard ASA (Oslo: PHLY), today delivered the Louisiana, the third of four next generation 50,000 dwt product tankers that it is building for Crowley Maritime Corporation (Crowley). The 600-foot tanker has a carrying capacity of 14.5 million gallons of crude oil or refined products.

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Louisiana during its sea trials. (Photo: Business Wire)

This delivery is the 23^rd vessel built by PSI (formerly known as Aker Philadelphia Shipyard, Inc.). The next generation 50,000 dwt product tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that also incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessel has also received LNG Ready Level 1 approval from the American Bureau of Shipping (ABS).

"We are proud to deliver another Philly-born tanker, the shipyard’s fifth tanker for Crowley and 23^rd vessel in total,” remarked Philly Shipyard’s President and CEO Steinar Nerbovik. "On behalf of the men and women who built her, we are honored knowing that the Louisiana will be another safe and quality addition to Crowley’s fleet that will serve its mariners and our nation’s waterways for decades to follow.”

"The Louisiana’s delivery continues to enhance the services we are able to provide to our petroleum customers,” said Crowley’s Rob Grune, senior vice president and general manager, petroleum services. "We celebrate new tonnage and the advanced technology, but most important to us and to our customers are the highly trained men and women of Crowley who are committed to transporting their fuel in the safest, most reliable way possible.”

"Milestones like today show we can deliver solutions that reinforce the value of the Jones Act vessels and American-built and American-crewed trade,” Grune said.

The remaining product tanker for Crowley is currently under construction and has a planned delivery in Q3 2016. Additionally, the shipyard has started construction of four 50,000 dwt tankers to be delivered to a subsidiary of Kinder Morgan, Inc. The shipyard also has begun construction of two 3,600 TEU containerships for Matson Navigation Company, Inc.

In line with the transaction announced by PHLY on September 22, 2015, at delivery of the Louisiana, the shipyard sold its interest in the PSI-Crowley joint venture with respect to that vessel to a subsidiary of Marathon Petroleum Corporation (MPC).

For more information on Philly Shipyard transactions and projects, please visit www.phillyshipyard.com.

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 II, which in turn is majority-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, Det norske oljeselskap, Aker BioMarine, Ocean Yield, Havfisk and Akastor.

About Crowley:

Jacksonville-based Crowley Holdings Inc., a holding company of the 124-year-old Crowley Maritime Corporation, is a privately held family and employee-owned company. The company provides marine solutions, energy and logistics services in domestic and international markets by means of six operating lines of business: Puerto Rico Liner Services, Caribbean and Latin America Liner Services, Logistics Services, Petroleum Services, Marine Services and Technical Services. Offered within these operating lines of business are: liner container shipping, logistics, contract towing and transportation; ship assist and escort; energy support; salvage and emergency response through its 50 percent ownership position in Ardent Global; vessel construction and naval architecture through its Jensen Maritime subsidiary; global ship management; government services, and petroleum and chemical transportation, distribution and sales. Additional information about Crowley, its subsidiaries and business units may be found on the Internet at www.crowley.com.

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