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AMERICAN SHIPPING COMPANYBOARD OF DIRECTORSANNETTE MALM JUSTADChairPETER D. KNUDSENBoard memberKRISTIAN RØKKEBoard memberMs. Justad has been a member of American Shipping Company ASA’s Board ofDirectors since December 2007 and waselected as chair of the Board in 2010.From 2006 through 2010, she held theposition of CEO of Eitzen Maritime Services ASA, a Norwegian marine shippingservices Company. Prior to that she hasheld various positions in large companiessuch as Yara International ASA, NorgasCarriers/IM Skaugen ASA, and Norsk Hydro ASA. Presently, Ms. Justad is a partnerat Recore, chair of REC Silicon, Norske togAS and Store Norske Spitsbergen Kulkompani AS and a board member of Torm plc,Awilco LNG ASA and PowerCell SwedenAB. Ms. Justad holds a Master degreeof Technology Management from MIT(Sloan School)/ NTH/NHH in addition to aMSc in Chemical Engineering from NTH.Ms. Justad is a Norwegian citizen. Ms.Justad holds 4,523 shares in the Companyand has no stock options. She has beenre-elected for the period 2019-2021.Peter D. Knudsen is the Managing Partner of NorthCape AS, a financial advisoryfirm. Mr. Knudsen was previously theCEO of Oslo listed Camillo Eitzen & Co.ASA from November 2008 to February2012. Prior to Camillo Eitzen & Co.ASA, Mr. Knudsen was employed byNordea Bank (Shipping Offshore andOil Services) for 15 years, and his lastposition was as a General Manager ofNordea Bank in Singapore. Mr. Knudsenhas also been employed with GIEK, Dennorske Creditbank, Jøtun Fonds andStemoco Shipping. He is presently aboard member with Oslo listed ParetoBank ASA and Uglands Rederi AS. Mr.Knudsen holds an MBA from ArizonaState University. He is a Norwegiancitizen and holds 3,000 shares of stockin the Company through Vilja AS. Mr.Knudsen has been a Board Member ofAmerican Shipping Company ASA since2012 and has been re-elected for theperiod 2020-2022.Kristian Røkke is currently CEO of AkerHorizons, a holding company with aportfolio of companies in the renewableenergy and green technologies space. Hehas extensive experience from offshoreoil services, shipbuilding industry, M&Aand other transactions. Prior to AkerHorizons, Mr. Røkke was CIO of Aker ASA.Mr. Røkke is a board member of TRGHolding AS, Aker Capital AS, Aker SolutionASA, Philly Shipyard ASA and AkastorASA. He holds an MBA from The WhartonSchool, University of Pennsylvania. Mr.Røkke is a Norwegian and Americancitizen and holds zero shares in the Company. Mr. Røkke was elected to the Boardof Directors at the Company’s AnnualGeneral Meeting in 2018, and has beenre-elected for the period 2020-2022.ANNUAL REPORT 2020 - 12

AMERICAN SHIPPING COMPANYBOARD OFDIRECTORS’REPORTAmerican Shipping CompanyASA (“AMSC” or the “Company”)is a ship owning and leasefinance company with a modernfleet of nine product tankersand one shuttle tanker operating in the U.S. domestic (“JonesAct”) trades. During 2020, all tentankers were in operation onbareboat charters to OverseasShipholding Group, Inc. and itssubsidiaries (collectively “OSG”),one of the largest operators inthe Jones Act tanker market,and domiciled in Tampa, Florida.THE GROUP’S BUSINESS ACTIVITIESThe main entities in the AMSC Group(the “Group”) are the Norwegian holdingcompany American Shipping CompanyASA and its wholly owned U.S. subsidiaries American Tanker Holding Company,Inc. (ATHC), American Tanker, Inc. (ATI),American Shipping Corporation (ASC),and the ten single purpose leasingcompanies (ASC Leasing I through X,Inc.), each owning one of the ten tankers.American Shipping Company ASA isdomiciled in Lysaker, Norway, and listedon the Oslo Stock Exchange, with the U.S.subsidiaries located in Kennett Square,Pennsylvania.AMSC’s business model is to own andlong-term bareboat charter-out vesselsfor operation in the U.S. Jones Act market,earning fixed bareboat charter revenuesgenerating stable cash flows to protectagainst short-term market fluctuations,and, in addition, with profit share potential generated by the bareboat charterers’operations in the time or voyage chartermarkets.In accordance with this policy, all of AMSC’s vessels are on long-term fixed ratebareboat charters with OSG, togetherwith a profit sharing agreement whichgives AMSC the upside of sharing theprofits generated by OSG. OSG employsthe vessels on voyage and time chartersto major oil companies, refineries andtrading companies.The vessels were built at Philly Shipyard(“PHLY”), a leading U.S. shipyard anddelivered between 2007 and 2011.The Company has no research and development activity.THE JONES ACT MARKETThe U.S. cabotage law, commonlyreferred to as the Jones Act, requires allcommercial vessels transporting cargoesbetween points in the United States to beU.S. built, owned, operated and mannedby U.S. citizens, and registered underthe U.S. flag. The Jones Act has existedsince 1920 and enjoys strong bipartisanpolitical support in the USA.AMSC’s operation in the Jones Act marketis made possible by the lease financeexception of the Jones Act, which permitsforeign ownership of the ships undercertain conditions. Compliance with thelease finance exception requires, amongother things, that the vessels be bareboatchartered to qualified U.S. citizen operators, such as OSG.KEY EVENTS 2020Senior secured debt refinancingDuring the second quarter 2020, AMSCclosed on the refinancing of its seniorsecured debt for nine of the vessels,totaling USD 305 million with new andexisting lenders. Annual amortization isUSD 21.8 million for five years with anaverage margin of 277 bps. AMSC alsoentered into interest rate swap contractson 60% of its bank debt at an averagerate of 49 bps.Unsecured bond refinancingDuring the third quarter 2020, AMSCclosed on the refinancing of the outstanding USD 220 million bond, with aANNUAL REPORT 2020 - 13

AMERICAN SHIPPING COMPANYBOARD OFDIRECTORS’REPORTVesselCharter ExpirationOverseas HoustonOverseas Long BeachOverseas Los AngelesOverseas New YorkOverseas Texas CityOverseas BostonOverseas NikiskiOverseas MartinezOverseas AnacortesOverseas TampaDec 2022Dec 2022Dec 2022Dec 2022Dec 2022Dec 2023Dec 2023Dec 2023Dec 2023Jun 2025new USD 200 million bond. The newbond has a 7.75% semiannual coupon andmatures 2 July 2025.COVID-19 impactAlthough demand for transportationof crude oil and petroleum products inthe U.S. was sharply reduced in 2020,AMSC is insulated in the short to mediumterm due to its “come hell or high water”bareboat contracts with OSG. The timingof market recovery could adversely affectAMSC based on the maturity of the bareboat charter contracts. The table abovesummarizes the durations and remainingextension options of AMSC’s ten vessels.Continued dividendsFor the financial year 2020, the Companydeclared dividends of USD 0.36 per share,USD 21.8 million in total. The Company’sfixed bareboat revenue currently supports this dividend level.REVIEW OF THE ANNUAL ACCOUNTSAMSC prepares and presents its consolidated accounts according to InternationalFinancial Reporting Standards (IFRS) asadopted by the EU, and has one operating segment.Profit and loss accountsIn 2020 and 2019, AMSC had operatingrevenues of USD 88.2 million and USD87.8 million, respectively, a reflection ofRemaining Charter Extension Options1 x 1 year, unlimited 3 and 5 year1 x 1 year, unlimited 3 and 5 year1 x 1 year, unlimited 3 and 5 year1 x 1 year, unlimited 3 and 5 year1 x 1 year, unlimited 3 and 5 yearUnlimited 3 and 5 yearUnlimited 3 and 5 yearUnlimited 3 and 5 yearUnlimited 3 and 5 year2 x 5 year followed by 5 x 1 yearthe Company’s stable, predictable business model. The increase in revenue from2019 is due to contracted adjustments ofthe bareboat charter rate reflecting theCompany’s investments in ballast watertreatment systems on two of its vessels.Revenues are recognized on a monthlybasis and represent the income fromthe bareboat charter agreements. Therewere no profits generated under the profitsharing agreement with OSG in 2020 or2019. The Company’s operating profitbefore interest, taxes, depreciation andamortization (EBITDA) amounted to USD85.2 million in 2020 compared to USD84.7 million in 2019.Depreciation was USD 34.2 million in2020 versus USD 33.9 million in 2019.AMSC’s operating profit (EBIT) was USD51.0 million in 2020 versus USD 50.8million in 2019.Net financial items were negativeUSD 49.4 million in 2020 compared tonegative USD 44.0 million in 2019. Netfinancial items of negative USD 49.4million in 2020 consist primarily of netinterest expense of USD 33.7 millionand other financial expenses of USD15.3 million, and non-cash loss on themark-to-market valuation of interestrate swap agreements of USD 0.4 million.Net financial items of negative USD 44.0million in 2019 consist primarily of netinterest expense of USD 37.7 millionand other financial expenses of USD 3.1million, and non-cash loss on the markto-market valuation of interest rate swapagreements of USD 3.2 million.Net profit before tax for 2020 and 2019was USD 1.6 million and USD 6.8 million,respectively.Non-cash deferred income tax benefitwas USD 16.9 million in 2019 (USD 1.6million in 2019). During 2020, AMSCrecognized its net deferred tax assets inNorway that had not been previouslyrecognized. The recognition of thedeferred tax asset is due to expectationsof future income to offset historical taxlosses. Income tax expense in 2020was USD 0.4 million (USD 0.1 million in2019).AMSC’s 2020 net income was USD 18.1million versus USD 8.3 million in 2019.The 2020 basic and diluted earningsper share (EPS) were USD 0.30. Thecorresponding figures for 2019 were USD0.14, for both basic and diluted EPS.Cash flowThe Company’s operating cash flow isprimarily composed of bareboat charterhire and DPO received, less interestpaid. Total net cash flow from operatingactivities in 2020 was positive USD 43.9million (USD 35.9 million in 2019).Net cash flow used in investing activitiesin 2020 was USD 4.8 million, representing the Company’s investment intwo ballast water treatment systems.Net cash flow from investing activitieswas positive USD 15.4 million in 2019,representing a liquidation distributionfrom PTAS of USD 16.3 million, offset byinvestments in ballast water treatmentsystems of USD 0.9 million.Net cash flow used in financing activitiesin 2020 was USD 51.1 million, whichincluded USD 31.2 million in vessel debtANNUAL REPORT 2020 - 14

AMERICAN SHIPPING COMPANYBOARD OFDIRECTORS’REPORTinstallments, USD 21.8 million in dividends paid/return of capital, USD 10.1million in loan fees paid, offset by netreceived from refinancing of USD 12.0million. Net cash flow used in financingactivities in 2019 was USD 57.2 million,which included USD 29.8 million in vesseldebt installments, USD 19.4 million individends paid/return of capital, USD 6.7million to repay Aker ASA subordinatedloan and USD 1.3 million in loan feespaid.Statement of financial positionand liquidityAs of 31 December 2020, American Shipping Company had cash on deposit withbanks totaling USD 35.8 million. Of thistotal amount, USD 0.9 million is cash heldfor specified uses. The correspondingamounts for 2019 were USD 47.9 millionin cash on deposit with banks and USD1.6 million in cash held for specified uses.Other current assets were USD 0.3million as of 31 December 2020 and USD0.4 million as of 31 December 2019.Property, plant and equipment as of 31December 2020 was USD 649.5 million(USD 678.9 million as of 31 December2019), and includes ten vessels.Interest-bearing long-term receivablestotaled USD 23.3 million as of 31 December 2020 (USD 25.3 million as of 31December 2019) and represent the DPOdue from OSG.Deferred tax assets totaled USD 14.8million as of 31 December 2020 and represent AMSC’s Norwegian net operatinglosses in carryforward, which were notpreviously recognized.At 31 December 2020, total assets wereUSD 723.6 million (USD 752.4 million asof 31 December 2019).At 31 December 2020 total equity wasUSD 161.3 million. The equity ratio was22.3% of total assets. Correspondingamounts for 2019 were USD 165.0 million and 21.9%, respectively.Total current liabilities as of 31 December2020 were USD 35.1 million, consistingof USD 26.8 million for short-terminterest bearing debt and USD 8.3 millionfor accrued interest and other payables.The corresponding total current liabilitiesas of 31 December 2019 were USD 52.5million, consisting of USD 44.3 millionfor short-term interest bearing debt andUSD 8.2 million for accrued interest andother payables.Non-current liabilities totaled USD 527.3million at 31 December 2020, consistingof long-term bank debt of USD 325.6million related to the ten vessels ownedby AMSC, a bond issue of USD 200.0million, deferred tax liability of USD 9.2million and derivative financial liabilitiesof USD 1.2 million, offset by unamortizedloan fees of USD 8.7 million. Non-currentliabilities totaled USD 534.9 million at 31December 2019, consisting of bank debtof USD 307.3 million related to the tenvessels owned by AMSC, a bond issue ofUSD 220.0 million, deferred tax liability ofUSD 11.4 million and derivative financialliabilities of USD 0.8 million, offset byunamortized loan fees of USD 4.6 million.Tax positionAMSC has federal net operating losses incarryforward (NOLs) as of 31 December2020 of USD 517.6 million in the U.S.and USD 75.8 million in Norway. TheseNOLs have been generated since 2005from the tax losses of the Company,which in the U.S. are mostly due to theaccelerated depreciation of the vesselsfor tax purposes (10 years) and in Norwayare mainly due to the interest cost on theoriginal 2007 bond loan.See note 5 in the consolidated accountsfor further information.RISKSCounterparty risk and charterrenewal riskThe risks facing AMSC principally relateto the commercial and financial performance of OSG and from OSG’s operationof our vessels, re-chartering risk as wellas overall Jones Act market risk.Since OSG is currently AMSC’s only counterparty, AMSC is exposed to OSG’s creditrisk. As charterer of all of the Company’svessels, OSG continued to service itsfinancial obligations to AMSC in 2020on time, including payments on the DPOreceivable. AMSC’s charter renewal riskwas reduced in 2019 with OSG’s electionto exercise its options on all vessels upfor renewal. AMSC enjoys downsideprotection with “come hell or high water”bareboat contracts and OSG’s evergreenextension options.The long-term fundamentals in theJones Act tanker market remain stable,although the current impact of theCOVID-19 pandemic has reduced demand for crude oil and clean products inthe U.S market in the near term.AMSC continues to closely monitor itsemployment and counterparty risk, aswell as Jones Act tanker market fundamentals.Financial risk and risk managementAMSC’s activities expose it to a variety offinancial risks: market risk, currency risk,interest rate risk, counterparty risk, pricerisk, credit risk, and liquidity risk. AMSC’soverall risk management program focuses on the unpredictability of financialmarkets and seeks to minimize potentialadverse effects on AMSC’s financialperformance. AMSC uses derivativefinancial instruments to hedge certainrisk exposure.AMSC operates in a business environment that is capital intensive. The Company is dependent upon having accessANNUAL REPORT 2020 - 15

AMERICAN SHIPPING COMPANYBOARD OFDIRECTORS’REPORTto long-term funding for the vessels andother loan facilities to the extent its owncash flow from operations is insufficientto fund its operations. With the closingof the secured bank debt and unsecuredbond during 2020, all of the Company’sdebt matures in 2025.Through the vessel financing, the Company is exposed to fluctuations in interestrates on its long-term debt. The interestrate risk related to the vessel financing ispartially mitigated by the use of interestrate swap agreements to hedge theinterest rate risk. The Company has interest rate swaps to convert its floating ratedebt to fixed rates for USD 226 million ofits vessel debt (USD 300 million as of 31December 2019).AMSC is subject to financial covenantsunder the secured bank loans relatingto minimum liquidity and collateral, andleverage and debt service ratios. AMSCis subject to financial covenants underthe bond related to minimum liquidityand maximum leverage. AMSC was incompliance with all of its debt covenantsas of 31 December 2020.THE GOING CONCERN ASSUMPTIONIn view of AMSC’s financial position,the Board confirms the going concernassumptions and that the 2020 annualaccounts have been prepared based onthe assumption of a going concern.Parent company accounts and allocationof income for the yearThe profit and loss account of AmericanShipping Company ASA (“AMSC ASA”)shows a profit for the year 2020 of USD34.9 million, due to the recognition ofthe parent company’s net deferred taxassets, management and guaranteefees to its subsidiaries, reversal ofimpairment charges and interest incomeon intercompany loans. AMSC ASA is theNorwegian parent company owning 100%of the U.S. subsidiaries.The Board of Directors proposes that theprofit for the year be allocated as shownbelow:Dividend paymentsTransferred fromshare premiumTransferred toother equityTotal allocatedUSD 21.8 million(USD 21.8 million)USD 34.9 millionUSD 34.9 millionThe Board of Directors was grantedauthorization to pay dividends based onthe Company’s annual accounts for 2019at the Annual General Meeting in 2020,which is valid up to the Company’s Annual General Meeting in 2021 subject to theBoard evaluating the liquidity position ofthe Company. Such authorization facilitates payment of dividend by the Boardof Directors on a quarterly basis.Subsequent to year-end, the Boarddeclared a dividend/return of capital ofUSD 0.10 per share (USD 6.1 million inaggregate) on 11 February 2021. The dividend was paid on 1 March 2021.CORPORATE SOCIAL RESPONSIBILITYAND ESG REPORTINGIn accordance with the Norwegian Accounting Act §3-3, section c, the Boardhas assessed AMSC’s Corporate SocialResponsibility (CSR) in the followingareas: human rights, labor standards,environment and corruption. In addition,AMSC is committed to report on ESG,which is the consideration of environmental, social and governance factorsin the day-to-day operations of theCompany.EnvironmentAMSC’s modern, double-hulled tankerfleet meets the current requirements ofthe U.S. Coast Guard. AMSC’s fleet wasdelivered between 2007 and 2011, andrepresents 28% of all modern ta

AMERICAN SHIPPING COMPANY ANNUAL REPORT 2020 - 2 KEY FIGURES 3 KEY EVENTS 2020 4 THIS IS AMERICAN SHIPPING COMPANY 5 FLEET OVERVIEW 6 PRIMARY TRADE ROUTES 7 . Boston Overseas New York Overseas Martinez Overseas Tampa ASC Leasing I Inc. ASC Leasing II Inc. ASC Leasing III Inc. ASC Leasing IV Inc. ASC Leasing V Inc. ASC Leasing VI Inc. ASC