Nordic American Tankers Ltd (NYSE: NAT) - Extraordinarily Strong Tanker Market
Hamilton, Bermuda March 17, 2020
Dear Shareholders,
We receive questions about the state of the tanker market, which is the strongest we have seen in decades.
Increased exports from Saudi Arabia lead to extra demand for tonnage. As an example, it has been indicated that one million barrels a day extra from Saudi Arabia to the Far East create demand for about 45 suezmaxes. It is simple: Increased demand leads to more transportation work for our tankers. The last days we have entered into solid contracts for our suezmax tankers in the region of $65,000 per day to more than $100,000 per day. Our operating costs are about $8,000 per day per vessel. NAT has 23 suezmaxes which can load one mill barrels each.
We paid 7 cents ($0.07) in dividend in the fourth quarter of 2019. We are hopeful to double that for the first quarter of 2020. NAT is now entering into contracts that go into the second quarter of 2020.
Please note that the comments made in this message are not predictions. Our description is a glimpse of the tanker market as we see it now.
All the commotion associated with the virus is impacting many companies and people. The impact on NAT is limited.
As matters stand now, we are in a very strong phase of the tanker market. We believe that this could last for quite a long time including next year (2021). Our description of the future is of course not a promise, but it is an indication how matters stand at this time as we see them.
NAT is on a very strong footing. We expect this to benefit our shareholders.
Best regards,
Herbjørn Hansson
Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
