American Shipping Company ASA (“AMSC” or the “Company”) announces results for second quarter ending 30 June 2020.
AMSC successfully closed a USD 305 million bank debt refinancing with new and existing lenders at attractive and improved terms. The new debt facilities reduce cost of capital and increase free cash flow
Launched refinancing of the Company’s USD 220 million unsecured bond, with a new USD 200 million bond which was successfully closed subsequent to quarter-end at a coupon 150 basis points lower than the prior bond
Stable Q2 financial performance with bareboat revenue of USD 21.9 million, normalized EBITDA of USD 22.1 million and adjusted net profit of USD 3.5 million
Backlog of secured bareboat revenue of USD 278.5 million with average weighted tenor of 3.2 years
Increased dividends by 25% to USD 0.10 per share backed by the Company’s increased free cash flow
AMSC CEO, Pål Lothe Magnussen comments, “We are pleased to announce a 25% increase in dividends this quarter. Despite the COVID-19 pandemic the company has successfully refinanced the bond and the bank debt at considerably lower cost, which enables us to increase dividends while at the same time strengthen our debt service coverage. The new debt terms reflect AMSC’s predictable platform of ten ships with contracted revenues operating in a market with stable long term outlook.”
Source: American Shipping Company ASA