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2014-05-02

Aker Philadelphia Shipyard: First Quarter 2014 Results

May 2, 2014

Financial Highlights

* EBITDA of USD 24.2 million, compared to USD 19.1 million in Q1 2013
* Total unrestricted cash of USD 106.7 million, compared to USD 68.8 million
at the end of Q1 2013
* Declared dividend of 17.5 NOK per share, approx. USD 37 million, to be paid
in May 2014

Aker Philadelphia Shipyard ASA today reported its highest ever quarterly
result, with an EBITDA of USD 24.2 million and net income of USD 17.8
million, an increase relative to Q1 2013 of 27% and 48%, respectively. The
increase was driven by the gain recorded from the sale of AKPS's profit
sharing interests in Hulls 017 and 018 to Crowley in Q1 2014.

"We are pleased to report both record earnings and a record dividend," said
Kristian Rokke, Chairman of AKPS. "Both highlight the value AKPS has
generated by creating and investing in Jones Act shipping assets in addition
to traditional shipbuilding activity. We have a strong balance sheet and
expect another record year, and would therefore like to give more back to
shareholders."

On 30 April 2014, the Board of Directors authorized a dividend of NOK 17.5
(approx. USD 2.93) per share, which will be paid on or about 16 May 2013 to
shareholders on record as of 6 May 2014. The total size of the dividend,
which is slightly higher than previously guided in connection with the sale
of the profit sharing interests in Hulls 017 and 018, is reflective of the
company's strong financial position and future earnings expectations.

The Company is currently in discussions with several interested parties
regarding a potential transaction involving the construction and sale of four
product tankers, Hulls 025-028, pursuant to which AKPS expects to retain
significant economic exposure in the vessels post-delivery. AKPS is
optimistic about securing Hulls 025-028 as product tankers during 2014.

Production activity on the two aframax tankers for SeaRiver Maritime, Inc.,
ExxonMobil Corporation's U.S. marine affiliate, continues with approximately
82% of the overall project complete at quarter end. In March 2014, the first
vessel (Hull 019) completed sea trials in accordance with the contract
schedule. However, during these trials a defect in the propulsion system was
discovered arising from a third-party supplied component. Remedial efforts
are currently underway to resolve this issue and will be concluded later this
month. It is expected that the costs of this work, in addition to other
higher than forecasted costs for completion of the vessels, will result in a
gross margin for the SeaRiver project of between 2 and 3%.

A naming ceremony for the first SeaRiver tanker was held on 25 April 2014, in
line with the original plans set in 2011, where the vessel was presented to
the owner and officially christened.

"The people of AKPS have done a great job building our largest ship yet and we
are proud to have been recognized for this by the customer last week," said
Kristian Rokke. "The SeaRiver project has elevated our organization's skill
set substantially and has been a key part in transforming our company to the
benefit of future projects." Kristian Rokke continued, "The defect in the
propulsion system is an isolated project specific issue that will not have
impacts on other projects, and we will of course do everything possible to
mitigate the schedule and cost impact from the rework."

Hull 020 production activities continue to progress in the Building Dock in
line with the contract schedule. Construction activity on Hull 021 for
Crowley commenced as planned on 6 January 2014, as did construction activity
on the second product tanker in the series on 21 April 2014. The majority of
the purchasing activities for Hulls 021-024 have been completed and long lead
items for Hulls 025-26 are being secured. Previous guidance for the expected
average gross margin on Hulls 021 through 030 is unchanged at approximately
13%.

"We're off to a good start on the product tanker series with project
preparations and procurement activities, as well as ship construction," said
Kristian Rokke. "To an increasing degree, we are returning to a type of
production activity characterized by standardized shipbuilding for what is
expected to be a series of eight product tankers. We are excited to build-off
the previously constructed fourteen product tankers, apply lessons-learned
from the SeaRiver project, and use a disciplined approach to continuous
improvement to ensure the opportunities associated with series construction
are fully harnessed."

For more details, please see the attached Q1 2014 report.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q1 2014 Report
http://hugin.info/138688/R/1782185/609976.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Aker Philadelphia Shipyard via Globenewswire

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