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Marine Log

August 12, 2008

Aker Philadelphia reports profit

The Aker Philadelphia Shipyard ASA Board has approved a proposal by management to distribute an interim dividend to its shareholders. An Extraordinary General Meeting has been scheduled for 2 September 2008 to allow all shareholders to approve the recommendation. Pending final approval, the Board recommends that the dividend be distributed in Q3 2008 for the 2007 accounting year with NOK 2.50 per share, in total NOK 25,413,262.50. It is intended that the shares of the company will be traded ex-dividend as of 3 September 2008.

President and CEO Jim Miller says "Our strong financial performance and belief in continued earnings growth were key drivers in making this recommendation. I am pleased that this proposal has been approved by the Board as it allows us to follow through on our commitment to return value to our shareholders."

Aker Philadelphia Shipyard reported EBITDA of $4.2 million for the second quarter of 2008 and earnings per share of $ 0.14.

Operating revenues for Q2 2008 were $71.1 million.

Looking to the future, it is working on Generation II shuttle tankers-- and again eying the Jones Act containership market.

In accordance with IFRS accounting rules Aker Philadelphia Shipyard is recognizing the nine tankers on order as of December 2007 as one single project and revenue and expense is being recognized on a global project basis. As of June 30, 2008 Aker Philadelphia Shipyard is approximately 31% complete with the project.

For Q2 2008, the net profit was $1.4 million compared to a net loss of $1.4 million in Q2 2007 which resulted in an increase of $ 2.8 million quarter over quarter. Revenues for the quarter were $71.1 million compared to Q2 2007 revenues of $50.7 million. The increase in both revenues and EBITDA is primarily attributable to higher through-put, the change in accounting methodology, and the contracts that were amended in Q4 2007.

Outlook

Going forward in 2008, Aker Philadelphia expects revenues will be generated from additional work completed on the remaining eight tankers being built for AMSC.

Currently the company says it is is on plan with the tanker program and continues to guide on an EBITDA margin of 6% or better over the project which is scheduled to be completed in Ql 2011. The company continues to work with AMSC regarding the timing of the exercise of some of its options for additional tankers.

With continued interest in additional shuttle tankers for the U.S. Gulf of Mexico, Aker Philadelphia Shipyard and American Shipping Company have been authorized by their boards to secure specific long lead items to support the construction of the Generation II Shuttle Tanker. These tankers, more advanced than the Generation II Shuttle Tankers that will be serving the Cascade and Chinook fields, will have dynamic positioning capability.

Aker Philadelphia Shipyard and American Shipping Company continue to work with other maritime companies to form strategic partnerships for the Gulf of Mexico shuttle tanker business.

The Jones Act containership fleet continues to increase in age with no replacement vessels on order. Aker Philadelphia Shipyard, the sole provider of containerships to the Jones Act for the last 15 years, is working with operators to explore new-build projects.

Aker Philadelphia Shipyard says owners and operators from other business segments have made inquiries for new construction projects. These opportunities are evaluated for a strategic fit in the organization on a case by case basis.


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