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Nordic American Tankers Ltd (NYSE: NAT) – Report March 31, 2022 (First quarter 2022) – Daily rates improving
Tuesday, May 31, 2022
Dear Shareholders and Investors,
Please see HIGHLIGHTS and enclosed 1Q 2022 report below.
HIGHLIGHTS:
The future of our business is sound
The uncertainty created by the Russia/Ukraine conflict is reshaping the energy map of the world long term. Oil will have to be sourced from a myriad of places, often involving longer (ton-mile) and thus more lucrative voyages. The NAT fleet of versatile suezmax tankers is ideally situated to take advantage of these changing circumstances. We have not carried Russian oil during the last year.
New oil tankers joining the global fleet are in short supply going forward. Major shipyards are reporting they have little or no capacity to build suezmax tankers before 2026. This is a very bullish data point both for the market over the long run and for NAT.
The average TCE for our active fleet during the first quarter of 2022 came in at $8,870 per day per ship. So far in the second quarter of 2022, 70% of our fleet is booked at an average TCE of about $20,000 per day per vessel (+ 125%). This is the best illustration possible of an advantageous market for our suezmax tankers.
With global oil inventories at critically low levels and the present political uncertainties, the improvement in tanker markets has accelerated.
We recorded a net loss of -$27 million or an EPS of -$0.14 for the first quarter 2022. The same quarter last year saw a net loss of -$25.0 million and a corresponding EPS of -$0.16 based on the average number of shares outstanding in the quarter.
The cash dividend for 1Q 2022 is 2 cent ($0.02) per share, payable on Wednesday July 6, 2022, to shareholders on record Tuesday June 14, 2022. This is our 99th consecutive quarterly dividend payment.
NAT has one of the lowest debt levels among publicly listed tanker companies. The net debt of the company as per March 31, 2022 is $226.9 million or $11.3 million per vessel. This provides the company with financial flexibility. Our objective is to become debt free.
Our newbuilding, The “Nordic Harrier” built by Samsung in South-Korea was delivered on schedule May 13, 2022. The second newbuilding will be delivered at the end of June. Both vessels are commencing six year time charters immediately upon delivery from the yard, ensuring earnings, cashflow and financial stability. The vessels are fully financed.
We have during the first four months of 2022 sold three of our 2002 built vessels. The ships were delivered to new owners on February 18, March 23 and April 12, 2022 respectively. A total of four vessels have been sold since we announced plans to refresh our fleet. The proceeds from these sales, which totalled about $60 million were used to pay down debt. We expect to sell one more 2002 suezmax at about $16 million.
Financial information for the first quarter of 2022 and for other periods is included later in this report - see link below.
For contacts, please see at the end of this communication.
www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Results are out Tuesday May 31 before NYSE opening - Monday, May 23, 2022
Message to the market:
This is to advise you that the results for the first quarter of 2022 will be published before NYSE opening May 31, 2022.
The market for our ships is dominated by implications caused by the Russian/Ukrainian conflict. Political events are well known to our business.
For the second quarter our TCE is about USD 20,000 per day. We have booked about 70% of the quarter.
We will always prioritize dividend.
For contacts, please see at the end of this communication.
www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Delivery today of suezmax newbuilding from Samsung shipyard in South Korea
May 13, 2022
Dear Shareholders and Investors,
Early this morning, we took delivery of a newbuilding suezmax tanker from Samsung Heavy Industries in South Korea. The vessel is about 150,000 tons and has the name of Nordic Harrier, which was the first NAT ship when becoming stocklisted on the New York Stock Exchange September 15, 1995.
Our new suezmax will commence a contract for six years to ASYAD Shipping Company of the Sultanate of Oman. The contract is producing earnings and cashflow as from delivery from the yard, creating financial stability and a further foothold in this important area.
Another newbuilding from Samsung is coming at the end of June. This vessel also has a contract for six years to the Sultanate of Oman.
Our experience over many years is that everything is on schedule when Samsung shipyard is involved.
For contacts, please see at the end of this communication.
www.nat.bm
Where can I find suezmax daily tanker rates
Nordic American Tankers Ltd (NYSE: NAT) – Our Tankers are Busy
Tuesday, May 3, 2022
Dear Shareholders and Investors,
We wish to update you on activities for our suezmax vessels being able to load one million barrels each.
In early April we fixed a ship over 12 days at USD 65,800 a day.
In mid April we fixed a ship at USD 60,000 for 38 days.
At the same time a contract was achieved for 22 days at USD 60,000.
When our ships are in good position, rates are currently about USD 50,000 per day.
Our main customers are appreciative of our efforts to deliver first class services.
All the best.
For contacts, please see at the end of this communication.
www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Delivery of newbuilding}}
Friday, April 29, 2022
Dear Shareholders and Investors,
We are pleased to inform that we will have an addition to our fleet delivered to us from Samsung Heavy Industries in South Korea.
The new Suezmax will delivered May 13, 2022 and it will commence on a time charter contract for six years to a first class company in the Sultanate of Oman in the Middle East. The contract will secure stable cash flow and provide return on capital.
It is always an objective for NAT to prioritize dividend payments.
The vessel is 157,000 deadweight tons and has a carrying capacity of about one million barrels of cargo.
For contacts, please see at the end of this communication.
www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Sale of one more vessel, accounting impairment charges to be recorded in the 2021 Annual Report
Tuesday, April 26, 2022
Dear Shareholders and Investors,
No tanker company on Wall Street has the strategy of NAT. NAT does not buy and sell Suezmaxes as a business proposition – the policy is based on the premise to keep the vessels to the end of their lives. Recently prices are up and we have sold a few vessels.
In July 2021 we announced a plan to sell ships in combination with buying ships. We have sold four Suezmaxes now, generating a cash injection of about USD 60 million to NAT. Vessel number four was delivered to the new owners on April 12, 2022.
We expect that our fleet will grow with the objective of having about 30 Suezmax vessels the next few years.
We have informed the market that we receive two newbuildings – one in May and one at the end June this year. They have both achieved contracts of six years each, in total twelve years with first class contractual partners, at solid rates creating earnings and stable cash flow.
In light of our recent vessels sales, we have concluded that we should record an impairment charge on our accounts for 2021. This charge is $51.9 million related to our vessels built in 2002 and 2003. The impairment charge is a non-cash accounting matter. It has nothing to do with our business as such.
We have previously report a year-to-date impairment charge of $8.4 million in our 4Q21 Earnings Release. This number will now be adjusted to $60.3 million in our 2021 20-F (Annual report).
These accounting matters do not affect our 2022 numbers.
The tanker market has developed positively in 2022 and the spot voyage contracts announced lately will contribute significantly to our cash position and ability to pay dividend.
NAT is on the way to its objective of becoming debt free.
For contacts, please see at the end of this communication.
www.nat.bm
Bull flag breakout for the win today
NAT shipping monster in the making
Nordic American Tankers Ltd (NYSE: NAT) – Rates for our one million barrel Suezmaxes are going up
Wednesday, April 13, 2022
Dear Shareholders and Investors,
We see a clear upswing in the market now. We have recently fixed three ships at rates ranging from USD 40,000 to USD 55,000 per day with a duration from 30 up to 70 days.
A large part of our fleet is operating in the sort term spot market.
Based on current rates, NAT would generate more than USD 200 million on an annualized basis above and beyond the daily operating costs of USD 8,000 per ship.
In this scenario, NAT can become debt free in a year or two, just as it has been in the past.
Dividends have been paid for 97 consecutive quarters and will always remain a priority for NAT.
It is our obligation to provide our investors with relevant information.
We expect the upswing to continue.
For contacts, please see at the end of this communication.
www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – An update on the employment of our Suezmax vessels
Wednesday, April 6, 2022
Market information:
We have informed you earlier that political uncertainty normally creates strong markets for our vessels. There is now a solid momentum in the market.
We are currently securing spot contracts for a month or longer at rates above USD 50,000 a day. Our operating costs are about USD 8,000 per day per ship.
NAT has a large part of the fleet operating in the spot market.
www.nat.bm
Time for the entrenched management to PROVE to shareholders that NAT can make enough money to increase the dividends...significantly.
Nordic American Tankers Ltd (NYSE: NAT) – NAT Board Member Alexander Hansson buys shares again
Wednesday, March 23, 2022
Dear Shareholders and Investors,
Alexander Hansson, Board Member of Nordic American Tankers Ltd (NAT) and son of Herbjorn Hansson, the NAT Founder, Chairman and CEO, has today bought 100,000 shares in NAT at $ 1.881 per share.
Following the transaction, Alexander Hansson privately owns 1,535,000 shares in NAT. The 28th of February this year he bought 250,000 NAT shares.
As in the past, the Hansson family is the largest private shareholder in the company.
Further contact details, see below. www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – An extremely busy period for NAT. Political uncertainty normally stimulate the NAT activities
Wednesday, March 9, 2022
Dear Shareholders and Investors,
The following transactions indicate how active NAT has been recently:
Two six-year time charters with Oman interest concluded, securing cashflow, return and financial stability
First drawdown for the $88 million newbuilding financing
Sale of three Suezmax vessels concluded – value $45 million
The elements above stimulate the NAT business.
Yesterday the US imposed a ban on imports of Russian Oil. Russian crude oil accounted for about 3% of total US crude oil imports last year.
Europe imports about one third of its oil from Russia.
With increased sanctions and prolonged uncertainty, Europe will source oil from elsewhere, such as West Africa, Americas and the Middle East.
Therefore, oil has to travel longer distances and more transportation work is good for the NAT vessels.
Some of the Russian oil may go to the East/Far East creating a strong ton-mile effect and improving the position for our ships further.
NAT now has 22 Suezmax tankers including 2 newbuildings.
A large part of the NAT fleet is currently in the spot market. NAT will instantly see the effect of increased transportation work and higher rates for our vessels.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – one more vessel sold – Strategic moves continue through one more sale
Friday, March 4, 2022
Dear Shareholders and Investors,
In our message of July 28, 2021, we advised you of our strategic moves to adjust our fleet.
The “Nordic Sirius” (2000 built) was sold in October 2021 and the “Nordic Mistral” (2002) in February 2022. In this message, we announce that we now have agreed the sale of another 2002 built vessel to a first class reputable buyer.
The vessel will be delivered to its new owners before the end of March. The sales reduce the NAT debt. The Wall Street listed NAT has a strong balance sheet. Through the sale of the third vessel, the solidity and maneuverability of NAT is enhanced. In the present volatile times, we have improved our position through the above mentioned transactions. The net price for NAT is about USD 15 mill per vessel, in total USD 45 mill.
The position of NAT has been further enhanced through two valuable long-term contracts for our two newbuildings for delivery by mid-2022. The value of these contracts are well in excess of USD 100 million, improving the NAT cash flow, profitability and solidity.
As highlighted in an interview with the undersigned on the US based CNBC a few days ago, uncertain geopolitical events often increase the need for alternative sourcing of oil. The concept of “hoarding” comes into play. The tanker industry is key to solving these challenges, providing for expanded transportation work for our ships. As in the past, we focus solely on Suezmax vessels, which can load one million barrels each.
This message illustrates a busy NAT period:
- Financing of our two newbuildings are in place (about USD 90 mill.).
- A strategic and important transaction involving Oman has been agreed. Scope: More than USD 100 mill.
- Sales of three vessels have been concluded. Proceeds USD 45 mill.
The elements above are strengthening NAT substantially.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited www.nat.bm
Shares of oil tanker owner Nordic American Tankers (NYSE: NAT) jumped by as much as 27.6% in trading on Monday after it was announced that an insider was buying shares. The stock closed the session up 26% at $2.42.
https://www.nasdaq.com/articles/why-nordic-american-tankers-stock-jumped-26-today
Nordic American Tankers Ltd (NYSE: NAT) – Further Purchase of NAT shares by Board Member Alexander Hansson
Monday, February 28, 2022
Dear Shareholders and Investors,
Alexander Hansson, Board Member in Nordic American Tankers Ltd (NAT) and son of Herbjorn Hansson, the NAT Founder, Chairman and CEO, has today bought 250,000 shares in NAT at $2.05 per share.
Following the transaction, Alexander Hansson privately owns 1,435,000 shares in NAT.
As in the past, the Hansson family is the largest private shareholder in the company.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – In an active period several projects concluded, enhancing NAT earnings and solidity.
Friday, February 18, 2022
Dear Shareholders and Investors,
In our message of July 28, 2021 we advised you of our program going forward.
As a follow up of that message several important developments in NAT have taken place:
Firstly, in October 2021 NAT announced the sale of “Nordic Sirius” built in 2000.
Secondly, we announced earlier this month the sale of “Nordic Mistral” built in 2002. This is to inform you that the vessel was delivered to its new owners today February 18, 2022.
These two transactions have brought in more than USD 30 million in cash to NAT.
Thirdly, a few days ago NAT announced the time charter contracts for the two new vessels we have ordered from Samsung in South-Korea. The vessels will be delivered to us in May and June this year.
The Charters are with Asyad Shipping Co, a company controlled by the Sultanate of Oman. The contracts will start direct from delivery in May and end June this year.
These Time Charter contracts will last for six years, securing earnings and cash flows. Asyad Shipping Co is a first class Charterer. In total well above USD 100 million in freight income to NAT will enhance the earnings, cashflow and solidity of NAT.
Following the above transactions, Nordic American Tankers controls a fleet of 23 Suezmax Tankers which can load one million barrels each.
The way forward is upwards.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – two six-year Time Charters concluded for Suezmax New Buildings. Top line contribution of more than $100 million from two ships.
Wednesday, February 9, 2022
Dear Shareholders and Investors,
We are pleased to inform you that we have concluded two six-year Time Charters for our two Suezmax newbuildings for delivery in May and June this year.
The contracts have been entered into with ASYAD Shipping Company and will commence upon delivery of the two NAT suezmaxes from the shipyard in South Korea. With the recent sales of two vessels, the NAT fleet now count 23 vessels.
The time charter rates concluded will secure a stable revenue stream over the six years, and generate an aggregate revenue of more than USD 100 million during these charters. The cumulative cash flow, after operating expenses, from these contracts will equal in excess of 60 percent of the original price of the vessels.
Thanks to the quality of our fleet and our maintenance schedules, the NAT suezmaxes are able to operate efficiently for more than 25 years.
Dr. Ibrahim Al Nadhairi CEO of ASYAD Shipping & Drydock Services said:
“We are pleased to have entered into these contracts with such a well reputed company as NAT, listed on the New York Stock exchange. Further projects may also be developed between our respective companies. From ASYAD Shipping perspective this will be a further expansion of the crude transportation verticals. This new partnership will leverage Asyad shipping readiness to evolve its leading position in shipping and logistics services. Morever, it will support its operation capabilities to secure more business opportunities for Oman and make it a global logistics hub".
Mr Herbjorn Hansson of Nordic American Tankers commented:
“Our business is expanding in the Middle East, which is an important area for our operations. We regard this cooperation with Oman interests as a substantial step forward to cementing and building out our position in the area. This may only be the beginning.”
The origin of the NYSE listed Nordic American Tankers Ltd started out with three vessels on seven year charters back in 1997 and formed the back-bone of our growth and expansion.
The contracts we now have concluded, are in line with our conservative policy of relying on both spot and long-term charter markets to navigate in the tanker business.
Upon delivery of the two new-buildings, NAT will have a number of its vessels on long term charters. Contracts of a long term nature, is an insurance policy and is strengthening NAT.
The other NAT ships trading in the spot market, will reap the benefits on that front as the market improves.
About ASYAD Shipping Company
Established in 2003, ASYAD Shipping Company S.A.O.C. grew out of the Omani government’s vision to develop a national fleet catering to the maritime transportation requirements of the country’s rapidly growing hydrocarbon, petrochemical, mining, and metallurgical industries. Initially focused on the transportation of domestically produced liquefied natural gas (LNG) cargoes to international markets, ASYAD Shipping Company’s fleet has evolved to include Very Large Crude Carriers (VLCCs), Product Tankers, Chemical Tankers, LPG Carriers Very Large Ore Carriers (VLOCs), Bulk Carriers, multi-purpose vessels and, lately, a containership as well. Today it owns and operates a diversified fleet of around 70 ships.
ASYAD Shipping is owned by the government of the Sultanate of Oman through Asyad Group S.A.O.C.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Sale of 2002 built Suezmax - the second sale the last few months
Wednesday, February 2, 2022
Dear Shareholders and Investors,
On the NAT website, you will see our press release of July 28, 2021, referring to our program to adjust our fleet.
Accordingly, we announced the sale of "Nordic Sirius" (2000 built) on October 6, 2021.
We have now sold one more Suezmax under the program.
The 2002 built "Nordic Mistral" has been sold. This transaction is fixed and firm. The vessel is planned for delivery to the new owner later in February. A price of about $30 million has been achieved in total for these two vessels, reflecting their quality and strengthening NAT.
Following the above transactions, Nordic American Tankers controls a fleet of 23 Suezmaxes - including 2 newbuildings for delivery in May and June this year.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Further Purchase of NAT shares by Board Member Alexander Hansson
Friday, January 21, 2022
Dear Shareholders and Investors,
Alexander Hansson, Board Member in Nordic American Tankers Ltd (NAT) and son of Herbjorn Hansson, the NAT Founder, Chairman and CEO, has today bought 50,000 shares in NAT at $ 1.557 per share.
Following the transaction, Alexander Hansson privately owns 1,185,000 shares in NAT.
As in the past, the Hansson family is the largest private shareholder in the company.
Alexander Hansson commented: "I strongly believe in the future of NAT"
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Christmas Greetings. Optimism is governing our thoughts.
December 20, 2021
Dear Shareholders,
As we are approaching the end of the year, we would like to extend our best wishes to all our shareholders and their families.
Several fundamentals are now pointing in the right direction. Oil demand is increasing, confirmed by the low oil inventories globally and orders for new tankers at the shipyards are at a low.
NAT has one of the lowest debt levels among publicly listed tanker companies on Wall Street. This low debt gives us room and flexibility to maneuver.
Over years, it is our experience that it is darkest just before dawn. NAT is well positioned when the sun shines on our fleet again.
NAT will always work for the highest possible earnings and dividends.
Our ships continue to visit all corners of the world.
As per previous communication, NAT board members have recently increased their share holdings.
We wish you all the best for the upcoming Holiday Season!
Best regards,
Herbjørn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd (NYSE: NAT) – Board Members buy Shares in NAT
Friday, December 10, 2021
Dear Shareholders and Investors,
We are pleased to report to you that Board Members have recently increased the number of NAT shares they own.
Board member Alexander Hansson has since November 26 bought 150,000 shares. His private holding is 1,135,000 shares.
Board member Jim Kelly has 210,000 shares in NAT. Board member Doug Penick joined the Board July 19, 2021. He has 175,000 shares.
The Hansson family is the largest private shareholder, holding marginally below 5 million shares.
I applaud the strong support by the NAT Board.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Further purchase of shares by NAT board member Alexander Hansson. Thursday, December 9, 2021
Dear Shareholders and Investors,
Alexander Hansson, Board member in Nordic American Tankers Ltd and son of Herbjorn Hansson, the NAT Founder, Chairman and CEO, has today bought 50,000 shares in NAT at $ 1.9898 per share.
Following the purchase of 50,000 shares on Friday November 26, 50,000 shares on Monday 29 and todays transaction of 50,000 shares, Alexander Hansson privately owns 1,135,000 shares in Nordic American Tankers Ltd.
As in the past, the Hansson family is the largest private shareholder in NAT.
Alexander Hansson commented: “I increase my holding, because I feel good about the NAT prospects”.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Nordic American Tankers Ltd (NYSE: NAT) – Further purchase of shares by NAT board member Alexander Hansson
Monday, November 29, 2021
Dear Shareholders and Investors,
Alexander Hansson, Board member in Nordic American Tankers Ltd and son of Herbjorn Hansson, the NAT Founder, Chairman and CEO, has today bought 50,000 share in NAT at $1.8833 per share.
Following the purchase of 50,000 shares on Friday November 26 and todays transaction, Alexander Hansson privately owns 1,085,000 shares in Nordic American Tankers Ltd.
As in the past, the Hansson family is the largest private shareholder in NAT.
Alexander Hansson commented: “I feel good about the prospects of NAT".
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
"A main feature of the NAT strategy is that NAT has suezmaxes only. No other public company has this feature. Asset values continue to rise." [...] "We have an excellent vetting record on our vessels, perhaps the best sign of a tanker company’s reliability. Vetting is the scorecard provided by our customers."
-Herbjorn Hansson
Founder, Chairman & CEO 11/24/21
"When earnings improve, higher dividends will be distributed"
-Herbjorn Hansson
Founder, Chairman & CEO 11/24/21
"Our objective is to become debt free."
-Herbjorn Hansson
Founder, Chairman & CEO 11/24/21
Thanks for Posting! Excellent news!
Nordic American Tankers Ltd (NYSE: NAT) – Third quarter 2021. Third quarter touched the bottom. The tide has now turned.
Wednesday, November 24, 2021
Dear Shareholders and Investors,
Please see HIGHLIGHTS and enclosed 3Q 2021 report below.
HIGHLIGHTS:
There is so much confusing day-to-day noise in the markets about oil and gas prices that we think many investors have decided to steer clear of the tanker sector entirely. All markets are volatile, and as history has shown volatility can be our friend when rates rise suddenly and the company’s stock price benefits. We firmly believe that successful investors buy quality companies and profit handsomely when the tide turns.
A main feature of the NAT strategy is that NAT has suezmaxes only. No other public company has this feature. Asset values continue to rise.
The International Energy Agency in Paris confirms that global oil demand is nearing pre-pandemic levels of early 2020 and more importantly, oil supply is now rising fast. This is good news for the NAT suezmaxes and provide confidence that a turn-around for the NAT fleet is getting closer by the day.
During recent months we have secured term contracts with prompt delivery for six months or longer at rates above $20,000/day or more for four of our vessels. The time charter rates for these ships were substantially higher than the spot market at the time and still are. These four contracts work as a hedge. Our fleet of 24 ships has significant upside.
We undertook planned maintenance of three ships during 3Q 2021, withdrawing them from the market for a large part of the quarter.
On November 5, 2021 the “Nordic Sirius” was delivered to new owners. The price to us was between $14 – 15 million. After the transaction our fleet counts 24 units, including 2 newbuildings. The estimated value for our two newbuildings is now about $70 million per ship. They were ordered at about $55 million per ship.
The proceeds from the above mentioned sale has been used to pay down part of our $306 million senior secured facility with CLMG/Beal Bank of Texas. The company’s total net debt per 3Q 2021 is $259.6 million or $11.8 million per vessel (based on 22 ships). Our objective is to become debt free.
The pandemic has lasted longer than we anticipated at the outset in early 2020. The third quarter of 2021 was the low point. The average time charter equivalent (TCE) for our active fleet during 3Q 2021 came in at $5,800 per day per ship – this was down from 2Q 2021 at $7,800 per day. NAT is through the low point. The average earnings for a Suezmax tanker for the last 30 years has been close to $30,000 per day per ship.
The third quarter of 2021 produced a net loss of -$44.7 million or a earnings per share (EPS) of -$0.27. Adjusted for an impairment of $8.4 million (non-cash) the net loss was -$36.3 million and adjusted EPS of -$0.22. This compares to the previous quarter, that came in at a net loss of -$28.7 million or an EPS of -$0.18.
Dividend is a priority for NAT and a reflection of our earnings. The dividend for 3Q 2021 is 1 cent ($0.01) per share, payable on Tuesday December 21, 2021, to shareholders on record Tuesday December 7, 2021. This is our 97th consecutive quarterly dividend payment. When earnings improve, higher dividends will be distributed.
We have an excellent vetting record on our vessels, perhaps the best sign of a tanker company’s reliability. Vetting is the scorecard provided by our customers.
NAT has sound corporate governance principles. The Company has zero tolerance for corruption. Our policy is to underpromise and overdeliver.
Financial information for the third quarter of 2021 and for other periods is included later in the report - see link below.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Without rising dividend payouts, NAT is stuck in a "trough".
Pun intended.
"...(NAT) said it has fixed one of its suezmaxes to an unnamed oil company for up to three years. The firm contract, which commences this month, is for one year at a daily rate of $20,000, with options for two additional years at significantly higher rates.
The majority of NAT ships trade on the spot market, and a one-year or longer term contract is said to be a “insurance policy” in terms of risk management, producing positive cash flow. “Our strategy of trading in the spot market, while also locking some ships into profitable long term contracts, allows us peak flexibility.”
The New York-listed suezmax specialist has 25 vessels in its fleet, including two newbuilds scheduled to arrive in 2022. According to the company, contracts for individual vessels are being signed almost daily, with the shortest duration last week for an inter-European voyage lasting about 20 days.
"Our policy is always to underpromise and overdeliver." Herbjorn Hansson
Founder, Chairman & CEO Nordic American Tankers Ltd.
Nordic American Tankers Ltd (NYSE: NAT) – Update to shareholders
Monday, November 1, 2021
Dear Shareholders and Investors,
Tanker markets have been down in 2021. This was also the case for the third quarter. There are now improved conditions for our Suezmax vessels. During the last two weeks, we have concluded contracts reflecting this.
We wish to share the following with you:
1. Improving market conditions
We are concluding contracts almost daily for individual vessels in our 25 ship fleet. The shortest duration last week is for an inter-European voyage for about 20 days and the longest is a term contract with an oil company that starts in November 2021 for one year ($20,000 per day) plus options for two more years at significantly higher rates. The spot contracts are about $20,000 per day for each ship, reflecting the recent rise in daily rates. The operating cash break-even for our vessels are $8,000 per day per ship.
Most of our ships trade in the spot market. A term contract of one year or more is an “insurance policy” from a risk management standpoint, producing positive cash flow. Our strategy of trading in the spot market, while also locking some ships into profitable long term contracts, allows us peak flexibility.
2. Cash from insurance premium
We are members of the mutual War Risk Association (WRA), located in Oslo, Norway. The WRA has obtained approval from the regulators in Norway to return $300 million of its capital of $1 billion to its members. NAT is expected to receive $4 million to maximum $6 million in cash before the end of 2021 or early in the first quarter of 2022.
3. Ballast Water Treatment Systems
NAT has installed Ballast Water Treatment Systems on several of our ships, and will be installing such systems on all our ships, in accordance with regulations of the International Maritime Organization (IMO), London. NAT is taking the necessary steps to ensure our vessels are fully compliant with national and international regulations, enabling the NAT vessels to operate all over the world.
Our strategy has always been to run NAT with two objectives in mind: To be the best tanker company for both our shareholders and our clients. As the world emerges from the pandemic, both parties will profit from our proven expertise and attention to market conditions.
Our 3Q 2021 results will be released Tuesday November 30, 2021 before NYSE opening.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
Wonder when this begins:
"Our policy is always to underpromise and overdeliver."
Nordic American Tankers Ltd (NAT) – Fleet expansion programme commenced, involving the selling and buying of ships
Wednesday, October 6, 2021
Dear Shareholders and Investors,
In our information to the market of July 28, we advised you of our fleet expansion, involving the selling and buying of vessels.
See enclosed link at the bottom of this message.
We have now sold a suezmax (2000 built). The transaction is fixed and firm. The vessel is due for delivery to the new owner in October/November this year.
The transaction is a part of the NAT fleet expansion.
Our policy is always to underpromise and overdeliver.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd.
Hammer close today. Good near term sign
Check lot of 100s ... I need shares
Going to run soon ... imo
At least this stock reflects the real economy sinking like a big NAT vessel unlike the infinite printing presses of the Fed that keep on sending the markets to record highs. I guess NAT not on the Fed’s Santa list of buying stocks
38k shares at 3.50 just someone bought
Oil down 4% today. That’s all.
Let me know when the company printing presses stop so I can start accumulating. $3.31 down -3.22% while the rest of the market going north. Bulk rates going up snd share price going south
Lot of 100 shares. Run anytime soon:)
How you know that?
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