(KBHM) American Shipping Company (AMSC:NO) has had some very turbulent, but interesting few weeks on the Oslo Stock Exchange. The stock soared from NOK 0,89 on April 18th, to NOK 6,46 on the 4th of May, equalling an increase of 626%. Kudos to those who made a killing, but for the others who entered at the peak, have endured a decrease of roughly 60%. Ouch.
Despite the huge decrease, the stock is still up 162% for the year.
American Shipping Company operates in the US Jones Act Market. Meaning it only serves domestic American ports. In the first quarter of 2012, Jones Act product tanker rates were 40% higher than the equivalent in the year before. First quarter 2012, the rates averaged $51 700 per day.
These fantastic rates allowed AMSC to release impressive first quarter results. They achieved a net profit of $8,2 million, versus -$5,5 million for the same period in 2011.
Today the company could also announce that their lenders have agreed to increase leverage on their ships, which should lead the way for new investments in product tankers. Is the performance for the year done, or will we see increased activity and results going forward?
AMSC:NO currently trading at NOK 3,15, up 0.32%.
