Nordic American Tankers Ltd (NYSE: NAT) – Report June 30, 2022 (Second quarter 2022) – an unbroken string of 100 quarters of dividend payments. Ship values and rates are up
Tuesday, August 30, 2022
Dear Shareholders and Investors,
Please see HIGHLIGHTS and the enclosed 2Q 2022 report below.
Highlights:
The average time charter equivalent (TCE) for our fleet during the second quarter of 2022 came in at $20,080 per day per ship, which is a substantial improvement compared with the first quarter of $8,870 per day per vessel. The third quarter has started at an even stronger pace. This obviously bodes well for our suezmax tankers.
As this year has shown, energy security is at the top of the global agenda. More oil is clearly needed. Given the geopolitical realities, oil will have to be transported over longer distances than in the past. This is positve for our fleet of suezmax tankers, which offer flexibility in the marketplace.
The orderbook for new suezmax tankers scheduled to join the global fleet currently stands at only 13 ships (2% of the world suezmax fleet). This is a historic low by any measure, and major shipyards have limited capacity to deliver more suezmax tankers before 2026. NAT has 20 one million barrel suezmax vessels on the water. Our fleet is in an excellent position to reap the benefits of a tight market.
Adjusted EBITDA for the second quarter improved significantly and came in with a positive $14.2 million. This compares with an EBITDA of -$7.7 million in the first quarter of the year. We recorded a net loss of -$4.0 million or an EPS of -$0.02 for the second quarter 2022 compared to the first quarter, which saw a net loss of -$27 million and an EPS of -$0.14.
Our dividend payment for the second quarter is our one hundreth quarterly payout to our shareholders. We are proud of this achievement, a record that is unmatched by any other public tanker company. In aggregate, more than $49 per share have been distributed over the years. The dividend number 100 will be 3 Cent ($ 0.03) per share and will be payable on October 12, 2022 to shareholders on record as of September 15, 2022. NAT is a dividend-driven company, and with improved earnings, higher dividends can be expected.
NAT has one of the lowest debt levels among publicly listed tanker companies. 15 of our ships are financed through a cooperation with a financial institution in Dallas, Texas, where the current gross borrowing is about USD 10 mill per ship. At the time of this report there are 20 vessels in the NAT fleet. Separate financial arrangements are in place for the other 5 vessels. The value of the NAT fleet has increased strongly in the recent past.
The first of our recent newbuildings was delivered on May 14th and our second newbuilding was delivered on June 30, 2022. Both vessels have commenced six-year time charter contracts, ensuring earnings, cashflow and financial stability.
The sale of our last 2002-built suezmax took place in July at a price of about $16 million. The proceeds from the sale were used to pay down debt.
Financial information for the second quarter of 2022 and for other periods is included in the attached report.
For contacts, please see at the end of this communication.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited
