AMSC ASA

Climate Impact & Sustainability Data (2020, 2022)

Installation of ballast water treatment systems on two vessels in 2020, with the remaining 8 scheduled for 2021-2024.
Jones Act tankers facilitate short-haul transportation, reducing fuel emissions per barrel transported.
Longer lifespan of Jones Act vessels compared to international shipping leads to less frequent reproduction.

Flexible working schedule and work location for employees.
Commitment to equal opportunity regardless of race, ethnic background, gender, religion, age or any other legally protected status.

Corporate governance policy ensures appropriate division of roles among owners, board, and executive management.
Company is in compliance with Norwegian requirements and recommendations on corporate governance for listed companies.

COVID-19 pandemic sharply reduced demand for crude oil and petroleum products in the U.S. in 2020.
Counterparty risk due to OSG being AMSC's only counterparty.
Charter renewal risk.

Downside protection with “come hell or high water” bareboat contracts and OSG’s evergreen extension options.
Close monitoring of employment and counterparty risk, as well as Jones Act tanker market fundamentals.
Refinancing of senior secured debt and unsecured bond, moving all debt maturities to 2025.

Frameworks Used: IFRS as adopted by the EU, Norwegian Accounting Act

Third-party Assurance: KPMG AS

Modern, double-hulled tanker fleet meets US Coast Guard requirements; 28% of all modern tankers in the US Jones Act below 20 years old. Normand Maximus is among the most modern subsea construction vessels globally.
Installation of ballast water treatment systems on all ten tankers (eight installed, two scheduled for 2023).

Opened a whistleblower channel in Q1 2023 in accordance with the Norwegian Transparency Act.
Crews on Jones Act tankers are unionized US citizens with benefits according to US tariffs.
Solstad directly employs about 90% of its crew, who are typically union members.

Complies with stringent Euronext Oslo Stock Exchange governance rules.
Maintains an appropriate division of responsibilities between governing bodies, Board of Directors, and management.
Carries Director and Officer Liability insurance in the amount of USD 50 million.

Counterparty risk and charter renewal risk (six vessels expiring in December 2026, three in January 2026, one in June 2025, one in October 2027).
Climate change risks (increased financing costs, regulatory changes).
Regulatory risk and political risk.
Financial risk (market risk, currency risk, interest rate risk, counterparty risk, price risk, credit risk, refinancing risk).
Refinancing of bank debt (USD 35 million due within 12 months).

Diversification of counterparties.
Downside market protection with bareboat contracts and redelivery notice periods.
Close monitoring of employment and counterparty risk, Jones Act tanker market, and offshore services market fundamentals.
Use of derivative financial instruments to hedge risk exposure.
Interest rate swaps to convert floating rate debt to fixed rates (USD 53.8 million as of 31 December 2022).
Compliance with debt covenants as of 31 December 2022.

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers AS