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
