Strong Refinery Runs and Shrinking Orderbook Yielding High Dividends

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1 May 4, 2016 Ardmore Shipping Corporation Strong Refinery Runs and Shrinking Orderbook Yielding High Dividends MORGAN STANLEY & CO. LLC Fotis Giannakoulis Sherif Elmaghrabi Industry View InLine Stock Rating Overweight Price Target $11.50 ASC reported strong 1Q results, in line with estimates. Attractive refining margins and a shrinking orderbook set the stage for product tanker rates to strengthen, paving the way to a high dividend. At the same time, the company has excess cash for growth or buybacks as the stock trades below NAV. ASC reports strong 1Q results. ASC reported EPS of $0.26, in line with consensus' $0.27 (MSe $0.23). Average net daily revenue rose 2% QoQ to $16.5kpd, in line with out forecast. EBITDA of $18.8m (+10% QoQ) was in line with consensus' of $18.9m (MSe $18.4m). ASC's declared a 1Q16 dividend of $0.16, an 23% increase vs 4Q, offering a 7.1% annualized yield. (See: Exhibit 3) 3 Modest leverage and strong liquidity position provide room for accretive growth or buybacks. During 1Q, ASC completed the refinancing of all of its debt with three new facilities totaling $427m, including $45m available commitments to finance future acquisitions. The facilities extend ASC's debt maturities to 2022 and reduce the interest cost by ~90bp to L+250bp. At the end of 1Q, ASC had cash of $47m, which after the completion of the sale of its two small chemical tankers for $38.5m and the repayment of the $26m capital leases will bring the company's cash to $60m and its liquidity to over $100m. That would be sufficient to fund at least two more vessel acquisitions without new equity or buyback stock as it trades below its $11.5/sh NAV. Since the end of 2015, ASC has bought back 366,347 shares at an average price of $8.20 under its $20m share repurchase program. We estimate ASC's current net debt at ~55% of its fleet value and the company's cash breakeven rate at $14kpd. Positive market outlook, but rising oil prices increase uncertainty. Product tanker rates have modestly declined in 2016 with MR rates averaging $16kpd YTD while the current spot is now at $14kpd vs ~$2122kpd the same time last year. Part of the weakness in spot rates can be attributed to higher refinery turnarounds compared to last year, as well as the recent rise in oil prices coupled with above average product stocks. Nevertheless, refinery margins remain highly profitable especially among the complex US and Asian refineries, suggesting a continuing strength in runs and oil flows for refined products. At the same time, the product tanker orderbook has declined to 6.6% of the fleet, the lowest level in 16 years, and fleet growth is expected to moderate considerably after 2Q. Attractively valued at discount to NAV with generous dividend yield. With refinery output increasing as a result of strong margins and the Ardmore Shipping Corporation ( ASC.N, ASC US ) Maritime Industries / United States of America Stock Rating Overweight Industry View InLine Price target $11.50 Shr price, close (May 4, 2016) $9.04 Mkt cap, curr (mm) $234 52Week Range $ Fiscal Year Ending 12/15 12/16e 12/17e 12/18e ModelWare EPS ($) Prior ModelWare EPS ($) P/E Consensus EPS ($) Div yld (%) Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare framework = Consensus data is provided by Thomson Reuters Estimates e = Morgan Stanley Research estimates QUARTERLY MODELWARE EPS ($) 2016e 2016e 2017e 2017e Quarter 2015 Prior Current Prior Current Q a Q Q Q e = Morgan Stanley Research estimates, a = Actual Company reported data Exhibit 1: Results vs. Estimates ($ million) Source: Company Data, Thomson Reuters, Morgan Stanley Research Exhibit 2: Reported Rates vs. Estimates ($ kpd) Actual MSe % Δ MR EcoDesign % MR EcoMod % Morgan Prod/Chem Stanley EcoDesign does (25k37k and Dwt) seeks to 17.4 do business 15.5 with 12% companies Prod/Chem EcoMod covered (17k29k in Morgan Dwt) Stanley 12.5 Research As a 2% result, investors Average TCE should Spot Rates be aware that the 17.1firm may 16.0 have a conflict 7% of Average interest Net Daily that Revenue could affect the objectivity 16.5 of 16.5 Morgan 1% Stanley Research. Investors should consider Morgan Source: Stanley Company Research Data, Morgan as only Stanley a single Research factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. 1

2 orderbook in decline, ASC looks highly attractive trading at 20% discount to its $11.5/sh NAV. At the same time we expect its dividend to remain relatively in line with the prior two quarters offering a ~6% yield based on our $18kpd MR rate assumption. ASC reported that it has already fixed 22% of its MR days at $18.5kpd and 39% of its chemical tanker days at $12.5kpd. We forecast 2Q16 EPS and dividend of $0.23 and $0.14 and for the full year at $0.94 EPS and $0.52 dividend. However, our estimates do not assume the use of the company's excess liquidity for the acquisition of additional vessels, which could add another $0.20 to our base case EPS. Ardmore Shipping Corporation May 4,

3 RiskReward Snapshot: Ardmore Shipping (ASC, Overweight, PT $11.5) RiskReward View: Product Tanker Rates and Values Driving Valuation Source: Thomson Reuters, Morgan Stanley Research Price Target $11.5 Bull $15 DPS: ~$1.45 Yield at 9.5% MR rates at $22kpd Base $11.5 1yr fwd EV/Fleet Value: ~105% MR rates at $18kpd in 2016/17 MR 5yr old: ~$26m 1yr fwd NAV: $11.5/sh Bear $6 20% drop in ship values NAV $7/sh P/NAV: 90% Derived from our base case. Global trade in refined product strengthens significantly as oil demand rises benefiting from low oil prices and better macro. Refinery margins are highly profitable driving runs higher, while capacity additions in Middle East and Asia increased flows to Europe and Australia. ASC acquires two additional secondhand vessels. MR2 vessels earn $22kpd, allowing ASC to generate $90m of operating cash flow and ~ $2.40 EPS. ASC distributes 60% of its EPS and market sees a ~$1.45 dividend. Global refinery margins remain profitable, maintaining strong runs and flows of products. Increase in refinery capacity in Asia and the Middle East, coupled with growing demand from Latin America and weakening output in Europe, result in mwith tonmile expansion from refinery shutdowns and low runs in Australia, West Africa and Europe. Product contango is beneficial, reducing vessel supply. MR2 rates average $18kpd in both 2016 and ASC pays a dividend of ~$0.60, based on its 60% payout policy of earnings. Vessel values moderate, with a 5year old MR being sold for ~$26m. Investors value ASC at a slight premium to its 1year forward EV/Fleet Value, which is a slight discount to peers due to its smaller size and limited liquidity of the stock. High newbuilding deliveries in 2016 and a softer freight rate environment drive asset values 20% below our base case. As ASC earnings turn negative NAV falls to $7/sh and the stock trades at a discount to its NAV. Investment Thesis Stock trades at a discount to its current NAV of ~$11.5/sh. Strategy of paying out 60% of earnings promises high dividends with upside potential. Strong market outlook for product tankers as refinery margins are profitable, global refinery capacity expands and orderbook is low. Low oil prices and strong refinery margins drive refinery runs and expansion in product tanker trade. New export oriented refineries in Middle East and Asia are expected to drive further growth in trade. MR orderbook has shrunk to the lowest level since 2000 and vessel deliveries are expected to decline after 1H2016. Key Value Drivers Tonmile expansion through growing dislocation of refining capacity. ASC has a highspec fuel efficient pro forma fleet of 22 product/chemical tanker fleet, with all vessels currently on the water. Strong liquidity position and capacity to buy at least two more ships without new equity. Management with strong record of accomplishment in shipping and operating in capital markets. What's in the Price Dividend is expected at $ , offering ~6% yield, based on $18kpd MR rates. Market expects vessel values to decline driving NAV lower. Potential Catalysts Strong global refinery margins and low oil prices drive trading activity for oil products higher and tanker rates increase further, driving dividend higher. Strong refinery runs drive product tanker rates higher. Further accretive acquisitions. Downside Risks Rising oil prices and weak demand reduce refinery margins and trading activity. Low shipyard utilization and pressure from other 3

4 shipping sectors drive vessel values lower and trigger another round of newbuilding orders. Stock remains illiquid causing it to trade at a discount to NAV. 4

5 1Q16 Earnings Comparison Exhibit 3: Earnings Comparison Source: Company Data, Morgan Stanley Research 5

6 NAV Analysis Exhibit 4: ASC Fleet Value & NAV Calculation Source: Company Data, Morgan Stanley Research Exhibit 5: NAV sensitivity to vessel values Exhibit 6: Forwardlooking NAV Source: Company Data, Morgan Stanley Research Source: Company Data, Morgan Stanley Research 6

7 Earnings Sensitivity Exhibit 7: Spot MR Product Tanker Rates Exhibit 8: MR product tanker rates (average 6 main routes) Source: Clarksons, Morgan Stanley Research Exhibit 9: EBITDA Sensitivity Source: Clarksons Exhibit 10: EPS & Dividend Sensitivity to MR Rates Source: Company Data, Morgan Stanley Research MR EPS Dividend Dividend Rates /share Yield Eco $kpd $0.11 $ % $0.25 $ % $0.39 $ % $0.54 $ % $0.68 $ % $0.82 $ % $0.97 $ % $1.11 $ % $1.26 $ % $1.40 $ % $1.54 $ % $1.69 $ % $1.83 $ % $1.97 $ % Source: Company Data, Morgans Stanley Research Exhibit 11: Spot MR Product Tanker Rates vs ASC Daily Revenue Exhibit 12: EPS Sensitivity EPS $5.00 $4.00 $3.00 $2.00 $1.00 $(0.23) $ $0.39 $(0.81) $0.11 $(1.00) $0.35 $0.68 $0.92 $ $1.50 $1.26 $2.07 $1.54 $2.65 $1.83 $3.22 $2.12 $3.80 $2.41 $4.37 $2.69 $(2.00) MR2 Rate ($kpd) Source: Company Data, Morgan Stanley Research Source: Clarksons, Company Data, Morgan Stanley Research 7

8 Market Fundamentals Refining Margins & Capacity Exhibit 13: US Gulf Cracking Refining Margin Exhibit 14: US Gulf LLS Simple Refining Margin $14 $/bbl $12 $10 $8 $6 $4 $2 $0 $2 $4 $6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y Avg Exhibit 15: NW Europe Brent Cracking Refining Margin $9 $/bbl $8 $7 $6 $5 $4 $3 $2 $1 $0 $1 $2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y Avg Exhibit 16: NW Europe Brent Simple Refining Margin $14 $12 $10 $8 $6 $4 $2 $/bbl $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y Avg Exhibit 17: Singapore Dubai Cracking Refining Margin $6 $4 $2 $0 $2 $4 $6 $8 $10 $/bbl $12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y Avg Exhibit 18: Singapore ARL Simple Refining Margin $12 $/bbl $10 $8 $6 $4 $2 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y Avg $6 $/bbl $4 $2 $0 $2 $4 $6 $8 $10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y Avg 8

9 Exhibit 19: Quarterly Average US Gulf Brent Cracking Refining Margin vs MR Rates Exhibit 20: Quarterly Average US Gulf Simple Refining Margin vs MR Rates Ardmore Shipping Corporation May 4, 2016 $35 $30 $25 $20 $15 $10 $5 $ MR Spot Rates ($kpd) USGBrent Cracking ($/bbl) 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q (2.0) (4.0) $35 $30 $25 $20 $15 $10 $5 $ MR Spot Rates ($kpd) USGLLS Simple($/bbl) 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q (2.0) (4.0) (6.0) (8.0) Exhibit 21: Quarterly Average NW Europe Brent Cracking Refining Margin vs MR Rates Exhibit 22: Quarterly Average NW Europe Brent Cracking Refining Margin vs MR Rates $35 MR Spot Rates ($kpd) $30 $25 $20 $15 $10 $5 $ NWEBrent Cracking ($/bbl) 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 Exhibit 23: Quarterly Average Singapore Dubai Cracking Refining Margin vs MR Rates $35 MR Spot Rates ($kpd) $30 $25 $20 $15 $10 $5 $ NWEBrent Cracking ($/bbl) 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 Exhibit 24: Quarterly Average Singapore ARL Simple Refining Margin vs MR Rates $35 MR Spot Rates ($kpd) $30 $25 $20 $15 $10 $5 $ SingaporeDubai Cracking ($/bbl) 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q $35 $30 $25 $20 $15 $10 $5 $ SingaporeARL Hydroskimming($/bbl) MR Spot Rates ($kpd) 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q (2.0) (4.0) (6.0) (8.0) Exhibit 25: Global Refinery Turnarounds (mbpd) Exhibit 26: Global Refinery Capacity Refinery Capacity Middle East Latin America Africa FSU China Japan Korea India Other Asia ex India OECD Asia Oceania Asia & Oceania OECD Europe Non OECD Europe Europe OECD Americas Global Refinery Capacity YoY change Source: Morgan Stanley Commodities Research Source: Morgan Stanley Research 9

10 Chartering Activity Exhibit 27: Reported Clean Handysize Tanker Spot Charters out of Mediterranean & Black Sea (Last 4 weeks) Exhibit 28: Reported Clean Handysize Tanker Spot Charters out of India (Last 4 weeks) Ardmore Shipping Corporation May 4, 2016 Source: Clarksons, Morgan Stanley Research Exhibit 29: Reported Clean Handysize Tanker Spot Charters out of Northern Europe (Last 4 weeks) Source: Clarksons, Morgan Stanley Research Exhibit 30: Reported Clean Handysize Tanker Spot Charters out of Middle East (Last 4 weeks) Source: Clarksons, Morgan Stanley Research Exhibit 31: Reported Clean Handysize Tanker Spot Charters out of the Far East (Last 4 weeks) Source: Clarksons, Morgan Stanley Research Exhibit 32: Reported Clean Handysize Tanker Spot Charters out of the US Gulf (Last 4 weeks) Source: Clarksons, Morgan Stanley Research Source: Clarksons, Morgan Stanley Research 10

11 Product Tanker Supply Ardmore Shipping Corporation May 4, 2016 Exhibit 33: MR Fleet Growth # of vessels Net Fleet Growth 12.0% 11.1% 10.0% 7.6% 7.8% % (39) (57) (48) (54) (150) (34) (28) (32) (30) (26) 3.3% 5.2% 6.0% (23) (20) (17) (17) 3.9% 4.5% 3.4% 2.2% 1.1% 8.0% 6.0% 4.0% 2.0% 0.0% 1.5% 2.0% 4.0% E 17E 18E Scheduled deliveries Additions Scrapping Slippage/New Orders Growth Source: Clarksons, Morgan Stanley Research Estimates Exhibit 34: MR Fleet Age Profile Exhibit 35: Scheduled MR Deliveries Source: Clarksons 1115 years 1620 years >20 years 610 years 05 years Actual Scheduled MR1 MR Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 Source: Clarksons 11

12 Exhibit 36: Product Tanker Fleet Supply Ardmore Shipping Corporation May 4, 2016 in # of ships E 2017E 2018E YTD 2016 Contracting LR2(80110k dwt) LR1(6080k dwt) MR2(4560k dwt) MR1(2545k dwt) Total MR(2560k dwt) Small(1025k dwt) Total # of ships Capacity(DWT million) Actual & LR2(80110k dwt) Projected LR1(6080k dwt) Deliveries MR2(4560k dwt) MR1(2545k dwt) Total MR(2560k dwt) Small(1025k dwt) Total # of ships Capacity(DWT million) Scrapping LR2(80110k dwt) LR1(6080k dwt) MR2(4560k dwt) MR1(2545k dwt) Total MR(2560k dwt) Small(1025k dwt) Total # of ships Capacity(DWT million) Orderbook LR2(80110k dwt) LR1(6080k dwt) MR2(4560k dwt) MR1(2545k dwt) Total MR(2560k dwt) Small(1025k dwt) Total # of ships Capacity(DWT million) Yearend Fleet LR2(80110k dwt) (in # of ships) LR1(6080k dwt) MR2(4560k dwt) ,032 1,126 1,196 1,249 1,272 1,155 MR1(2545k dwt) Total MR(2560k dwt) 1,141 1,214 1,293 1,408 1,511 1,467 1,505 1,532 1,578 1,649 1,735 1,805 1,863 1,880 1,762 Small(1025k dwt) Total # of ships 1,680 1,790 1,923 2,106 2,266 2,262 2,326 2,358 2,409 2,483 2,567 2,679 2,799 2,839 2,618 Yearend LR2(80110k dwt) capacity LR1(6080k dwt) (in DWT million) MR(2560k dwt) Small(1025k dwt) Total Capacity Capacity growth LR2(80110k dwt) 11.6% 11.5% 8.8% 21.4% 20.0% 10.4% 4.4% 2.0% 1.6% 3.6% 1.1% 11.7% 10.2% 3.1% 9.8% LR1(6080k dwt) 23.7% 18.6% 24.5% 16.8% 12.8% 8.2% 7.9% 2.2% 2.0% 0.4% 0.4% 4.8% 9.3% 4.2% 0.4% MR(2560k dwt) 6.6% 7.6% 7.8% 11.1% 8.0% 1.5% 3.3% 2.2% 3.9% 5.2% 6.0% 4.5% 3.4% 1.1% 1.7% Small(1025k dwt) 0.5% 2.7% 3.8% 3.3% 10.5% 1.0% 2.1% 2.0% 2.0% 2.8% 2.0% 0.8% 3.4% 1.2% 0.1% Total Capacity growth 9.2% 9.6% 10.3% 13.5% 11.2% 2.7% 4.2% 2.0% 2.8% 3.7% 3.7% 5.9% 5.9% 2.1% 3.0% Source: Clarksons, Morgan Stanley Research Estimates 12

13 Pro Forma Financials Exhibit 37: Ardmore Shipping Income Statement Source: Company Data, Morgan Stanley Research estimates 13

14 Exhibit 38: Ardmore Shipping Cash Flow Statement Source: Company Data, Morgan Stanley Research estimates 14

15 Exhibit 39: Ardmore Shipping Balance Sheet Source: Company Data, Morgan Stanley Research estimate 15

16 Disclosure Section The information and opinions in Morgan Stanley Research were prepared by Morgan Stanley & Co. LLC, and/or Morgan Stanley C.T.V.M. S.A., and/or Morgan Stanley Mexico, Casa de Bolsa, S.A. de C.V., and/or Morgan Stanley Canada Limited. As used in this disclosure section, "Morgan Stanley" includes Morgan Stanley & Co. LLC, Morgan Stanley C.T.V.M. S.A., Morgan Stanley Mexico, Casa de Bolsa, S.A. de C.V., Morgan Stanley Canada Limited and their affiliates as necessary. For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY, USA. For valuation methodology and risks associated with any recommendation, rating or price target referenced in this research report, please contact the Client Support Team as follows: US/Canada ; Hong Kong ; Latin America (U.S.); London +44 (0) ; Singapore ; Sydney +61 (0) ; Tokyo +81 (0) Alternatively you may contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY USA. Analyst Certification The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Fotis Giannakoulis. Unless otherwise stated, the individuals listed on the cover page of this report are research analysts. Global Research Conflict Management Policy Morgan Stanley Research has been published in accordance with our conflict management policy, which is available at Important US Regulatory Disclosures on Subject Companies As of April 29, 2016, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: Ardmore Shipping Corporation, Costamare Inc, DHT Holdings Inc, Dynagas LNG Partners, Euronav NV, GasLog Partners LP, Golar LNG Limited, Golar LNG Partners LP, Nordic American Tanker Shipping Ltd., Ship Finance International Ltd, Teekay Corporation, Teekay LNG Partners LP. Within the last 12 months, Morgan Stanley managed or comanaged a public offering (or 144A offering) of securities of Ardmore Shipping Corporation, Costamare Inc, GasLog Ltd, GasLog Partners LP. Within the last 12 months, Morgan Stanley has received compensation for investment banking services from Ardmore Shipping Corporation, Costamare Inc, Dynagas LNG Partners, Frontline Ltd, GasLog Ltd, GasLog Partners LP. In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from Ardmore Shipping Corporation, Costamare Inc, Diana Shipping Inc., Euronav NV, Frontline Ltd, GasLog Ltd, Genco Shipping & Trading Ltd, Golar LNG Limited, Golar LNG Partners LP, Golden Ocean Group Ltd, Nordic American Tanker Shipping Ltd., Safe Bulkers, Scorpio Tankers Inc., Ship Finance International Ltd, Star Bulk Carriers Corp, Teekay Corporation, Teekay LNG Partners LP, Teekay Offshore Partners LP, Teekay Tankers Ltd., Tsakos Energy Navigation LTD. Within the last 12 months, Morgan Stanley has received compensation for products and services other than investment banking services from Frontline Ltd, Teekay Corporation. Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: Ardmore Shipping Corporation, Costamare Inc, Diana Shipping Inc., Euronav NV, Frontline Ltd, GasLog Ltd, GasLog Partners LP, Genco Shipping & Trading Ltd, Golar LNG Limited, Golar LNG Partners LP, Golden Ocean Group Ltd, Nordic American Tanker Shipping Ltd., Safe Bulkers, Scorpio Tankers Inc., Ship Finance International Ltd, Star Bulk Carriers Corp, Teekay Corporation, Teekay LNG Partners LP, Teekay Offshore Partners LP, Teekay Tankers Ltd., Tsakos Energy Navigation LTD. 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Thirdparty data providers make no warranties or representations relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages relating to such data. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and S&P. Morgan Stanley Research, or any portion thereof may not be reprinted, sold or redistributed without the written consent of Morgan Stanley. INDUSTRY COVERAGE: Maritime Industries COMPANY (TICKER) RATING (AS OF) PRICE* (05/04/2016) Fotis Giannakoulis Ardmore Shipping Corporation (ASC.N) O (08/26/2013) $9.04 Costamare Inc (CMRE.N) O (02/26/2012) $9.04 DHT Holdings Inc (DHT.N) O (09/14/2015) $5.52 Diana Shipping Inc. (DSX.N) E (02/24/2015) $3.18 Dynagas LNG Partners (DLNG.N) E (12/09/2013) $13.37 Euronav NV (EURN.N) O (02/17/2015) $10.72 Frontline Ltd (FRO.N) E (05/27/2015) $7.58 GasLog Ltd (GLOG.N) E (03/01/2016) $12.22 GasLog Partners LP (GLOP.N) O (06/02/2014) $18.88 Genco Shipping & Trading Ltd (GNK.N) U (12/15/2015) $0.78 Gener8 Maritime Inc (GNRT.N) E (09/14/2015) $7.08 Golar LNG Limited (GLNG.O) O (02/26/2012) $16.27 Golar LNG Partners LP (GMLP.O) E (02/20/2014) $16.39 Golden Ocean Group Ltd (GOGL.O) U (12/15/2015) $0.73 Hoegh LNG Partners LP (HMLP.N) E (09/02/2014) $17.80 Navigator Holdings Ltd (NVGS.N) E (12/16/2013) $14.75 Navios Maritime Partners LP (NMM.N) U (02/04/2016) $1.52 Nordic American Tanker Shipping Ltd. (NAT.N) E (10/29/2012) $15.17 Safe Bulkers (SB.N) E (12/15/2015) $1.02 Scorpio Tankers Inc. (STNG.N) E (08/26/2013) $5.99 Ship Finance International Ltd (SFL.N) E (12/03/2013) $14.66 Star Bulk Carriers Corp (SBLK.O) U (12/15/2015) $0.83 Teekay Corporation (TK.N) E (02/26/2012) $9.89 Teekay LNG Partners LP (TGP.N) E (12/06/2010) $12.95 Teekay Offshore Partners LP (TOO.N) E (04/19/2016) $5.76 Teekay Tankers Ltd. (TNK.N) E (12/05/2014) $3.69 Tsakos Energy Navigation LTD (TNP.N) O (08/20/2014) $5.95 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted Morgan Stanley 19