AMSC ASA – Update regarding charter extensions
AMSC ASA (AMSC) announced that Overseas Shipholding Group (OSG) has yesterday declared its options to extend the bareboat charter agreements for six vessels currently under charter from AMSC to OSG by three years, moving the new bareboat expiry dates to December 2026. This increases AMSC’s bareboat charter backlog with a total of 18 vessel years and more than USD 163 million.
AMSC CEO Pål Lothe Magnussen commented, “The extension of six Jones Act product tankers by OSG increases AMSC’s charter backlog considerably and provides clear visibility to our cash flows for the next several years. The extensions are also a reflection of the strong Jones Act tanker market in which presently all tankers are on time charter contracts. The lack of newbuild orders due to cost inflation and yard capacity constraints makes it highly unlikely for any new tankers to enter the market anytime soon which bodes well for a continued healthy Jones Act tanker market.”
Source: AMSC ASA