Profit split income should come – BUY, TP up to NOK 39 (33) AMSC has yielded total return of 52% this year, outperforming returns all other comparable companies. Current yield of 7.7% is less attractive though, as interest rates are rising. Tanker rates are basically in line with where profit split kicks inn though, and we see it as likely that the OSG deficit will be paid down by mid next year. There is no fleet growth here, meaning that if the positive US production trend continues AMSC
could be able to reinstate the previous 12/cent/qrt dividend by 2020, which at a 10% yield would imply NOK 39 – our new target price.