APSI agrees to offload its interest in product tanker joint venture with Crowley


Aker Philadephia

Aker Philadelphia Shipyard's (AKPS) wholly-owned US subsidiary has agreed to sell its interest in a product tanker joint venture with Crowley Maritime to a subsidiary of Marathon Petroleum.

The transaction, which is based on an enterprise value of $150m per vessel, is related to the operation and chartering of four 50,000 dwt product tankers.

Under the terms of the contract, Aker Philadelphia Shipyard Inc (APSI) will invest in the vessels during their construction, but will no longer maintain the previously planned long-term investment in the vessels post-delivery, which was expected to be approximately $110m in the aggregate.

The deal is expected to close in the third quarter of 2016, with the delivery of the vessels-under-construction by APSI from mid-2015 to mid-2016.

AKPS chairman Kristian Rokke said: "This transaction is an important part of AKPS's plan to divest its shipping investments and realise the value created for shareholders."

"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"

"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."

Recently, the shipyard announced a proposal to change its name to Philly Shipyard by the end of the year.

APSI has already begun construction on the first two of four additional 50,000 dwt tankers for a subsidiary of Kinder Morgan, which are planned to be delivered between November 2016 and November 2017.

The company also has contracts for two 3,600 TEU containerships for Matson Navigation Company, to be delivered in 2018.


Image: All four vessels in the transaction are under construction at Aker Philadelphia Shipyard. Photo: courtesy of Aker Philadelphia Shipyard Inc.