Financing hitch for Aker Philly shuttle tankers

Aker Philadelphia Shipyard (Oslo: AKPS) says it has been notified by American Shipping Company (Oslo: AMSC) that AMSC will change the building sequence of its 12 tanker build program, as AMSC has not yet been able to arrange financing for the two shuttle tankers in that program.

The two shuttle tankers are intended for bareboat charter by AMSC to Overseas Shipholding Group (NYSE: OSG), who will time charter the vessels to Petrobras for operation in the Gulf of Mexico. Without financing in place for the shuttle tankers, AKPS cannot draw on its committed construction financing facility to build these vessels and, therefore, the building sequence will be changed.

AKPS notes that the shipbuilding contracts for the shuttle tankers provide flexibility with respect to delivery of the vessels and make this change in building sequence possible. This change in building sequence will not delay delivery of the product tankers, says the yard.