Aker Philadelphia AKPS NO
April 09, 2015 - 11:47am EST by
tml2106
2015 2016
Price: 140.00 EPS 0 0
Shares Out. (in M): 12 P/E 0 0
Market Cap (in $M): 210 P/FCF 0 0
Net Debt (in $M): -60 EBIT 0 0
TEV ($): 150 TEV/EBIT 0 0

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  • Discount to Liquidation Value
  • Shipping
  • Orphan stock
  • Lack of Coverage
  • Norway
 

Description

 

Thesis Summary

 

AKPS was written up as a long by BJG in January 2014, and was well-covered.  My objective is to publish a succinct update on the long thesis of this unique stock that is trading more than 30% below liquidation value and has 3.5x upside to my base case (and 5x to my blue sky case).

 

AKPS is a Norwegian-listed US company with two businesses: a shipyard and a shipping portfolio.  It owns one of only two large-scale commercial shipyards in the US.  It also owns interests in up to eight Jones Act tankers.

 

On a liquidation value, the stock is worth 210 NOK.  This simply takes AKPS’s net cash, present values the shipyard’s existing backlog (with no terminal value) and assumes a sale of the company’s shipping interests based on recent sales prices for older vessels with inferior charter contracts.  My base case valuation for the business is 470 NOK, which I’ll get into below. 

 

I believe this opportunity exists because AKPS is a company that operates entirely in the US yet trades in Norway, making it an orphan stock.  It has no sell-side coverage and is thinly traded, with most incremental trading done by Norwegian retail investors, where the local stock market has been volatile, the currency has been weak and the economy is heavily dependent on energy. 

 

There’s also a strong alignment of incentives as the Executive Chairman (and former CEO) is son of the ultimate controlling shareholder, Norwegian billionaire Kjell Rokke.

 

 

Description

 

As mentioned, AKPS is both a shipyard and ship owner.  For an in-depth description of AKPS, I refer you to BJG’s thorough write-up.  For now I will just provide a basic overview.

 

AKPS operates one of two commercial shipyards in the US capable of building tankers and containerships (the other being NASSCO, owned by General Dynamics).  Its shipping business comes via ownership in two entities: one is a 50/50 JV with Crowley Maritime, one of the largest technical managers of Jones Act vessels; the second is a 54% stake in Philly Tankers, a recently established entity owned by AKPS, its sister company American Shipping (ticker: AMSC NO) and Apollo.  The JV with Crowley is building four tankers, all of which have commenced construction with deliveries running from 4Q15 to 4Q16.  Philly Tankers has firm orders to build two tankers, with construction likely commencing later in 2015 for delivery in late 2016/early 2017; Philly Tankers also has options for two additional tankers (for a total of four boats), which the company expects to exercise (these boats would be delivered in 2H17).

 

 

Thesis

 

Given the above behavioral and technical dynamics of AKPS, I believe it trades well below its intrinsic value.  I value the company under both Stress Case (ie, liquidation value) and Base Case scenarios.

 

For the Stress Case scenario, the shipyard is valued based on the NPV of its existing backlog, assuming no terminal value.  The shipping business is valued using tanker values in-line with what Genesis Energy (ticker: GEL) paid for an (older) Jones Act tanker in November 2014; in this scenario, I don’t assume the additional two newbuild options are exercised by Philly Tankers.

 

 

Stress Case

             
   

$mm

NOK / sh

Notes

     

Net cash

 

59.6

40

       

Shipyard, backlog value

 

70.0

47

13% EBITDA margin, 10% discount rate

Shipyard, terminal value

 

--

--

       

Crowley JV value (4 boats)

 

151.8

102

See below

     

Philly Tanker value (2 boats)

 

34.6

23

See below

     

Philly Tanker value (2 options)

--

--

       

Total value

 

315.9

211

       

Current price

 

209.2

140

       

Up / (Down), %

 

 

51%

       
                 

 

 

Value of Crowley JV - Stress Case

           
   

$mm

Notes

       

TEV of 1 tanker at GEL Purchase Px

157.0

Based on acq px of American Phoenix by GEL

 

Number of tankers in JV

 

4

         

TEV of JV

 

628.0

         

AKPS % interest

 

50%

         

TEV to AKPS

 

313.4

         
               

Cost to build 1 tanker

 

(125.0)

         

Number of tankers in JV

 

4

         

Costs to JV, total

 

(500.0)

         

AKPS % interest

 

50%

         

Costs to AKPS, total

 

(249.5)

         

AKPS costs funded to date

 

87.9

As of 4Q14

       

Costs to AKPS, remaining

 

(161.6)

         
               

Crowley JV value to AKPS

 

151.8

         
                 

 

Value of Philly Tankers (2 boats) - Stress Case

         
   

$mm

Notes

       

TEV of 1 tanker at GEL Purchase Px

157.0

Based on acq px of American Phoenix by GEL

 

Number of tankers in JV

 

2

         

TEV of JV

 

314.0

         

AKPS % interest

 

54%

         

TEV to AKPS

 

169.6

         
               

Cost to build 1 tanker

 

(125.0)

         

Number of tankers in JV

 

2

         

Costs to JV, total

 

(250.0)

         

AKPS % interest

 

54%

         

Costs to AKPS, total

 

(135.0)

         

AKPS costs funded to date

 

--

As of 4Q14

       

Costs to AKPS, remaining

 

(135.0)

         
               

Philly Tanker JV value to AKPS

34.6

         
                 

 

 

For the Base Case scenario, the shipyard is valued both on its existing backlog, and a terminal value (with a 6x terminal EBITDA multiple).  The shipping business is valued by using a $70,000 dayrate on the vessels, a 25-year vessel life and zero residual value (all of which are pretty conservative assumptions); in this scenario, I do assume the additional two newbuild options are exercised by Philly Tankers.  All six vessels newbuild vessels have firm charter contracts. We know with the Crowley JV that the dayrate is $70,000 and the average charter term is six years.  With the two Philly Tanker boats, we don’t definitively know what the terms are, but in February 2015, it was reported that another Jones Act tanker being delivered in 2016 had entered into a three-year charter with dayrates between $70-75k over; given the savviness of the Philly Tankers owners, and the fact that they announced their charter two weeks after the aforementioned one, I think it’s safe to assume that their charter terms are at least as good.

 

 

Base Case

             
   

$mm

NOK / sh

       

Net cash

 

59.6

40

       

Shipyard, backlog value

 

70.0

47

13% EBITDA margin, 10% discount rate

Shipyard, terminal value

 

118.1

79

6x terminal EBITDA multiple

 

Crowley JV value (4 boats)

 

264.2

177

See below

     

Philly Tanker value (2 boats)

 

95.4

64

See below

     

Philly Tanker value (2 options)

95.4

64

Same valuation as the two firm orders

Total value

 

702.8

470

       

Current price

 

209.2

140

       

Up / (Down), %

 

 

236%

       
                 

 

 

 

Value of Crowley JV - Base Case

           
   

$mm

Notes

       

TEV of 1 tanker at GEL Purchase Px

213.3

$70k dayrate, 25-yr vessel life, zero residual value

 

Number of tankers in JV

 

4

         

TEV of JV

 

853.4

         

AKPS % interest

 

50%

         

TEV to AKPS

 

425.8

         
               

Cost to build 1 tanker

 

(125.0)

         

Number of tankers in JV

 

4

         

Costs to JV, total

 

(500.0)

         

AKPS % interest

 

50%

         

Costs to AKPS, total

 

(249.5)

         

AKPS costs funded to date

 

87.9

As of 4Q14

       

Costs to AKPS, remaining

 

(161.6)

         
               

Crowley JV value to AKPS

 

264.2

         
                 

 

 

Value of Philly Tankers (2 boats) - Base Case

         
   

$mm

Notes

       

TEV of 1 tanker at GEL Purchase Px

213.3

$70k dayrate, 25-yr vessel life, zero residual value

 

Number of tankers in JV

 

2

         

TEV of JV

 

426.7

         

AKPS % interest

 

54%

         

TEV to AKPS

 

230.4

         
               

Cost to build 1 tanker

 

(125.0)

         

Number of tankers in JV

 

2

         

Costs to JV, total

 

(250.0)

         

AKPS % interest

 

54%

         

Costs to AKPS, total

 

(135.0)

         

AKPS costs funded to date

 

--

As of 4Q14

       

Costs to AKPS, remaining

 

(135.0)

         
               

Philly Tanker value to AKPS

 

95.4

         
                 

 

 

Just for fun, under a blue sky case, where after seven years dayrates move to $100,000, AKPS would be worth 700 NOK/share, 5x above current prices.  While $100k may seem crazy, I’d point out that Exxon chartered a Jones Act tanker last year at a $110,000 dayrate (albeit for six months).  Additionally, according to Kinder Morgan, moving crude by rail is three-times more expensive than by Jones Act tankers, and with a significantly worse safety record (there have been three derailments in North American in just the past two months).

 

To unlock this value, both the company and its controlling shareholder have each said they are exploring strategic alternatives for AKPS (and its sister company, AMSC, has made a similar announcement).  I think this could entail the sale of all or parts of the company.  KMI has recently said they are still interested in Jones Act acquisitions; GEL just did a secondary which gives them $500-800mm of dry powder (depending on leverage and whether the greenshoe is exercised) that could be used for future vessel purchases.  Additionally, I believe we’re likely to see other midstream companies enter the Jones Act space through vessel acquisitions.  Finally, there is also the potential for a “mega merger” of several Jones Act participants, including AKPS, AMSC, Philly Tankers and Overseas Shipholding Group, which would create a larger, more liquid, US-listed vehicle (though my sense is that this is the company’s less preferred route for monetization).  In the meantime, AKPS has a history of tendering for stock, having done so twice in 2014.

 

From a trading standpoint, it’s worth point out that liquidity is actually better than it looks – but at a price.  Bidding 5%, 10% or so above market prices should bring about disproportionately better liquidity…yes, nobody wants to do this, but given the opportunity here, I think one should avoid being penny wise, pound foolish.  But this is just my suggestion. 

 

Risks

·         Crude oil export ban is lifted / watered down

·         Jones Act repeal

 

BJG covered these risks extensively.  All I will add is to say that the crude export ban risk is more of a marginal risk (ie, would hurt valuation by lowering future dayrate expectations), whereas a repeal of the Jones Act is more of an existential risk (ie, the value of the business is very materially impaired if there’s a full repeal).  If you have some real reason to be worried about a full Jones Act repeal, then don’t invest in AKPS.  It’s that simple.  However, Kinder Morgan, which has already invested over $1bn in Jones Act vessels, said as recently as March 2015 at an investor conference that they are looking to continue buying Jones Act tankers; I don’t pretend to have better lobbying resources nor political insight than KMI or NASSCO’s parent, GD.  Additionally, Senator McCain, who has been the only real opponent of the Jones Act in Washington, floated in early 2015 the idea of softening (not fully repealing) the Jones Act via an amendment to an unrelated bill, yet the idea never even made it out of committee discussions.

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

·         Delivery of owned tankers and the resultant cash flows (beginning 4Q15)

·         Announcements related to the company’s and/or its controlling shareholder’s strategic review

·         Sale of all or parts of the company

·         Additional tenders for stock by the company

·         OSG IPO should bring increased investor focus / interest in Jones Act assets given its size ($1.3bn implied market cap today)

    sort by   Expand   New

    Description

     

    Thesis Summary

     

    AKPS was written up as a long by BJG in January 2014, and was well-covered.  My objective is to publish a succinct update on the long thesis of this unique stock that is trading more than 30% below liquidation value and has 3.5x upside to my base case (and 5x to my blue sky case).

     

    AKPS is a Norwegian-listed US company with two businesses: a shipyard and a shipping portfolio.  It owns one of only two large-scale commercial shipyards in the US.  It also owns interests in up to eight Jones Act tankers.

     

    On a liquidation value, the stock is worth 210 NOK.  This simply takes AKPS’s net cash, present values the shipyard’s existing backlog (with no terminal value) and assumes a sale of the company’s shipping interests based on recent sales prices for older vessels with inferior charter contracts.  My base case valuation for the business is 470 NOK, which I’ll get into below. 

     

    I believe this opportunity exists because AKPS is a company that operates entirely in the US yet trades in Norway, making it an orphan stock.  It has no sell-side coverage and is thinly traded, with most incremental trading done by Norwegian retail investors, where the local stock market has been volatile, the currency has been weak and the economy is heavily dependent on energy. 

     

    There’s also a strong alignment of incentives as the Executive Chairman (and former CEO) is son of the ultimate controlling shareholder, Norwegian billionaire Kjell Rokke.

     

     

    Description

     

    As mentioned, AKPS is both a shipyard and ship owner.  For an in-depth description of AKPS, I refer you to BJG’s thorough write-up.  For now I will just provide a basic overview.

     

    AKPS operates one of two commercial shipyards in the US capable of building tankers and containerships (the other being NASSCO, owned by General Dynamics).  Its shipping business comes via ownership in two entities: one is a 50/50 JV with Crowley Maritime, one of the largest technical managers of Jones Act vessels; the second is a 54% stake in Philly Tankers, a recently established entity owned by AKPS, its sister company American Shipping (ticker: AMSC NO) and Apollo.  The JV with Crowley is building four tankers, all of which have commenced construction with deliveries running from 4Q15 to 4Q16.  Philly Tankers has firm orders to build two tankers, with construction likely commencing later in 2015 for delivery in late 2016/early 2017; Philly Tankers also has options for two additional tankers (for a total of four boats), which the company expects to exercise (these boats would be delivered in 2H17).

     

     

    Thesis

     

    Given the above behavioral and technical dynamics of AKPS, I believe it trades well below its intrinsic value.  I value the company under both Stress Case (ie, liquidation value) and Base Case scenarios.

     

    For the Stress Case scenario, the shipyard is valued based on the NPV of its existing backlog, assuming no terminal value.  The shipping business is valued using tanker values in-line with what Genesis Energy (ticker: GEL) paid for an (older) Jones Act tanker in November 2014; in this scenario, I don’t assume the additional two newbuild options are exercised by Philly Tankers.

     

     

    Stress Case

                 
       

    $mm

    NOK / sh

    Notes

         

    Net cash

     

    59.6

    40

           

    Shipyard, backlog value

     

    70.0

    47

    13% EBITDA margin, 10% discount rate

    Shipyard, terminal value

     

    --

    --

           

    Crowley JV value (4 boats)

     

    151.8

    102

    See below

         

    Philly Tanker value (2 boats)

     

    34.6

    23

    See below

         

    Philly Tanker value (2 options)

    --

    --

           

    Total value

     

    315.9

    211

           

    Current price

     

    209.2

    140

           

    Up / (Down), %

     

     

    51%

           
                     

     

     

    Value of Crowley JV - Stress Case

               
       

    $mm

    Notes

           

    TEV of 1 tanker at GEL Purchase Px

    157.0

    Based on acq px of American Phoenix by GEL

     

    Number of tankers in JV

     

    4

             

    TEV of JV

     

    628.0

             

    AKPS % interest

     

    50%

             

    TEV to AKPS

     

    313.4

             
                   

    Cost to build 1 tanker

     

    (125.0)

             

    Number of tankers in JV

     

    4

             

    Costs to JV, total

     

    (500.0)

             

    AKPS % interest

     

    50%

             

    Costs to AKPS, total

     

    (249.5)

             

    AKPS costs funded to date

     

    87.9

    As of 4Q14

           

    Costs to AKPS, remaining

     

    (161.6)

             
                   

    Crowley JV value to AKPS

     

    151.8

             
                     

     

    Value of Philly Tankers (2 boats) - Stress Case

             
       

    $mm

    Notes

           

    TEV of 1 tanker at GEL Purchase Px

    157.0

    Based on acq px of American Phoenix by GEL

     

    Number of tankers in JV

     

    2

             

    TEV of JV

     

    314.0

             

    AKPS % interest

     

    54%

             

    TEV to AKPS

     

    169.6

             
                   

    Cost to build 1 tanker

     

    (125.0)

             

    Number of tankers in JV

     

    2

             

    Costs to JV, total

     

    (250.0)

             

    AKPS % interest

     

    54%

             

    Costs to AKPS, total

     

    (135.0)

             

    AKPS costs funded to date

     

    --

    As of 4Q14

           

    Costs to AKPS, remaining

     

    (135.0)

             
                   

    Philly Tanker JV value to AKPS

    34.6

             
                     

     

     

    For the Base Case scenario, the shipyard is valued both on its existing backlog, and a terminal value (with a 6x terminal EBITDA multiple).  The shipping business is valued by using a $70,000 dayrate on the vessels, a 25-year vessel life and zero residual value (all of which are pretty conservative assumptions); in this scenario, I do assume the additional two newbuild options are exercised by Philly Tankers.  All six vessels newbuild vessels have firm charter contracts. We know with the Crowley JV that the dayrate is $70,000 and the average charter term is six years.  With the two Philly Tanker boats, we don’t definitively know what the terms are, but in February 2015, it was reported that another Jones Act tanker being delivered in 2016 had entered into a three-year charter with dayrates between $70-75k over; given the savviness of the Philly Tankers owners, and the fact that they announced their charter two weeks after the aforementioned one, I think it’s safe to assume that their charter terms are at least as good.

     

     

    Base Case

                 
       

    $mm

    NOK / sh

           

    Net cash

     

    59.6

    40

           

    Shipyard, backlog value

     

    70.0

    47

    13% EBITDA margin, 10% discount rate

    Shipyard, terminal value

     

    118.1

    79

    6x terminal EBITDA multiple

     

    Crowley JV value (4 boats)

     

    264.2

    177

    See below

         

    Philly Tanker value (2 boats)

     

    95.4

    64

    See below

         

    Philly Tanker value (2 options)

    95.4

    64

    Same valuation as the two firm orders

    Total value

     

    702.8

    470

           

    Current price

     

    209.2

    140

           

    Up / (Down), %

     

     

    236%

           
                     

     

     

     

    Value of Crowley JV - Base Case

               
       

    $mm

    Notes

           

    TEV of 1 tanker at GEL Purchase Px

    213.3

    $70k dayrate, 25-yr vessel life, zero residual value

     

    Number of tankers in JV

     

    4

             

    TEV of JV

     

    853.4

             

    AKPS % interest

     

    50%

             

    TEV to AKPS

     

    425.8

             
                   

    Cost to build 1 tanker

     

    (125.0)

             

    Number of tankers in JV

     

    4

             

    Costs to JV, total

     

    (500.0)

             

    AKPS % interest

     

    50%

             

    Costs to AKPS, total

     

    (249.5)

             

    AKPS costs funded to date

     

    87.9

    As of 4Q14

           

    Costs to AKPS, remaining

     

    (161.6)

             
                   

    Crowley JV value to AKPS

     

    264.2

             
                     

     

     

    Value of Philly Tankers (2 boats) - Base Case

             
       

    $mm

    Notes

           

    TEV of 1 tanker at GEL Purchase Px

    213.3

    $70k dayrate, 25-yr vessel life, zero residual value

     

    Number of tankers in JV

     

    2

             

    TEV of JV

     

    426.7

             

    AKPS % interest

     

    54%

             

    TEV to AKPS

     

    230.4

             
                   

    Cost to build 1 tanker

     

    (125.0)

             

    Number of tankers in JV

     

    2

             

    Costs to JV, total

     

    (250.0)

             

    AKPS % interest

     

    54%

             

    Costs to AKPS, total

     

    (135.0)

             

    AKPS costs funded to date

     

    --

    As of 4Q14

           

    Costs to AKPS, remaining

     

    (135.0)

             
                   

    Philly Tanker value to AKPS

     

    95.4

             
                     

     

     

    Just for fun, under a blue sky case, where after seven years dayrates move to $100,000, AKPS would be worth 700 NOK/share, 5x above current prices.  While $100k may seem crazy, I’d point out that Exxon chartered a Jones Act tanker last year at a $110,000 dayrate (albeit for six months).  Additionally, according to Kinder Morgan, moving crude by rail is three-times more expensive than by Jones Act tankers, and with a significantly worse safety record (there have been three derailments in North American in just the past two months).

     

    To unlock this value, both the company and its controlling shareholder have each said they are exploring strategic alternatives for AKPS (and its sister company, AMSC, has made a similar announcement).  I think this could entail the sale of all or parts of the company.  KMI has recently said they are still interested in Jones Act acquisitions; GEL just did a secondary which gives them $500-800mm of dry powder (depending on leverage and whether the greenshoe is exercised) that could be used for future vessel purchases.  Additionally, I believe we’re likely to see other midstream companies enter the Jones Act space through vessel acquisitions.  Finally, there is also the potential for a “mega merger” of several Jones Act participants, including AKPS, AMSC, Philly Tankers and Overseas Shipholding Group, which would create a larger, more liquid, US-listed vehicle (though my sense is that this is the company’s less preferred route for monetization).  In the meantime, AKPS has a history of tendering for stock, having done so twice in 2014.

     

    From a trading standpoint, it’s worth point out that liquidity is actually better than it looks – but at a price.  Bidding 5%, 10% or so above market prices should bring about disproportionately better liquidity…yes, nobody wants to do this, but given the opportunity here, I think one should avoid being penny wise, pound foolish.  But this is just my suggestion. 

     

    Risks

    ·         Crude oil export ban is lifted / watered down

    ·         Jones Act repeal

     

    BJG covered these risks extensively.  All I will add is to say that the crude export ban risk is more of a marginal risk (ie, would hurt valuation by lowering future dayrate expectations), whereas a repeal of the Jones Act is more of an existential risk (ie, the value of the business is very materially impaired if there’s a full repeal).  If you have some real reason to be worried about a full Jones Act repeal, then don’t invest in AKPS.  It’s that simple.  However, Kinder Morgan, which has already invested over $1bn in Jones Act vessels, said as recently as March 2015 at an investor conference that they are looking to continue buying Jones Act tankers; I don’t pretend to have better lobbying resources nor political insight than KMI or NASSCO’s parent, GD.  Additionally, Senator McCain, who has been the only real opponent of the Jones Act in Washington, floated in early 2015 the idea of softening (not fully repealing) the Jones Act via an amendment to an unrelated bill, yet the idea never even made it out of committee discussions.

    I do not hold a position with the issuer such as employment, directorship, or consultancy.
    I and/or others I advise hold a material investment in the issuer's securities.

    Catalyst

    ·         Delivery of owned tankers and the resultant cash flows (beginning 4Q15)

    ·         Announcements related to the company’s and/or its controlling shareholder’s strategic review

    ·         Sale of all or parts of the company

    ·         Additional tenders for stock by the company

    ·         OSG IPO should bring increased investor focus / interest in Jones Act assets given its size ($1.3bn implied market cap today)

    Messages


    SubjectRe: NAV calculations
    Entry04/09/2015 05:00 PM
    Membertml2106

    Yes, NAV's reflect future capex, as shown in the tables in the note: each boat costs $125mm to build; so if you see the table for the Crowley boats, for instance, there's $250mm of ttl capex that AKPS needs to fund (125 x 4 x 50%) of which 87.9mm has already been spent as of 4Q14, leaving $162mm left to spend.

    As for the yard, they will draw on various debt facilities as needed throughout the life cycle of building each boat; while today they have < $1mm of debt, that will go up and down over time.  The interest costs associated with this oscillating debt balance are capture in the "Shipyard, backlog value" line item of $70.0mm, which is based on a DCF of AKPS's backlog.


    SubjectSmall Typo
    Entry04/12/2015 08:19 PM
    Membertml2106

    Just realized that in the two tables that show the steps to value the Crowley and Philly Tanker JVs under the "Base Case" scearnio, the top line is mislabled (it says "TEV of 1 tanker at GEL Purchase Px", which is the label from the "Stress Case" table).  It should read "TEV of 1 tanker based on DCF".  Note that the numbers are all correct, though.  Thanks


    SubjectAKPS to sell its shipping portfolio - stock unch'd
    Entry07/16/2015 10:11 AM
    Membercan869

    “The planned divestment of our shipping assets will show that we have created significant shareholder value and will greatly focus the business going forward."


    SubjectRe: AKPS to sell its shipping portfolio - stock unch'd
    Entry07/21/2015 07:17 PM
    Membertml2106

    This an illiquid (and at times irrational) stock, so it's not a total surprise the stock didn't initial move on this annoucnement (though now it is +15%).  I think the thesis stock is playing out now, and that the stock is still very cheap here.  The company said they expect to finalze a deal in 3Q15 (ie, this quarter), which I believe they will.  Also, I'd point out that they also defintively said they'll exercise the 2 Philly Tanker options

     

    One point I'm not certain of is taxes.  My analysis implicitly assumes AKPS pays no taxes (which may or may not be right, depending on how they structured their JV).  For conservatism, assuming they pay full US corporate taxes on the gain on sale of these JV interests, at a 40% effecitve tax rate, that would be:

    • Under the Stress Case,  a net 13 NOK/sh hit to my px tgt (ie, Px Tgt = 198 NOK/sh), equal to a i) another 23 NOK/sh of value for the exercise of the 2 Philly Tanker options, less ii) the 36 NOK/sh hit ($53mm) tax hit (40% x AKPS's % ownership x gain on sale (ie, per ship = $157mm - 125mm)) 
    • Under the Base Case, a net 98 NOK/sh hit ($147mm) to my px tgt (ie, Px Tgt = 376 NOK/sh), which equals the tax tax hit (40% x AKPS's % ownership x gain on sale (ie, per ship = $213mm - 125mm)) 
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