Aker plans to buy Philly

Aker ASA and Kvaerner ASA have started to collaborate on setting up Aker American Shipping ASA, a company that will own Kvaerner’s shipyard in Philadelphia and 10 – yet to be built – product tankers.

Aker added that following the company’s creation it will consider buying Kvaerner out of the venture if a planned stock exchange listing of Aker American Shipping is successful.

It will then include the company in the Aker group.

“For Aker this is an interesting investment and an exciting new business area,” said Aker CEO Leif-Arne Langoey. “Under the management agreement with Aker Yards ASA, Kvaerner Philadelphia has been developed into the most effective shipyard in the US Jones Act market,” he added.

An agreement in principle has already been signed to charter the 10 product tankers over a long period to Overseas Shipholding Group Inc (OSG). “In the short term, the agreement with OSG gives predictable earnings to Aker American Shipping,” Langoey added. “In the longer term, large opportunities will arise when the many old ships on the US market have to be replaced by new tonnage.”

The sale of Aker American Shipping, including its subsidiaries Kvaerner Philadelphia Shipyard Inc and American Shipping Company Inc, is in line with Kvaerner’s announced strategy of realising the company’s values and distributing them to the shareholders.

Aker and Kvaerner expect to reach agreement on the conditions for the share sale by the summer holidays, but an agreement will depend on a number of conditions, including the final contract with OSG.

Greek shipowner Altomare however confirmed this week that it has ordered a total of 12 tankers at China�fs Haidong Shipyard.