Nordic American Tankers Ltd (NYSE: NAT) – Some reflections at the start of the New Year
Wednesday, January 4, 2023
Dear Shareholders & Investors,
I thought I would share with you my thoughts for what I think 2023 holds for our company.
The last days of 2022 are a good harbinger for the future: We concluded four contracts at rate levels of about USD 40,000 to USD 50,000 per day ranging between 30 days to 50 days each.
As we have seen in the past, political uncertainty creates demand for the transport of oil. As a consequence of Russia's invasion of Ukraine and the West's strong reaction, energy security is of paramount concern. Oil will have to be sourced from further away than in the past, creating longer voyages. Uncertain times also encourages hoarding among some buyers, adding to demand for oil and for the NAT tankers.
I also see a longer-term trend, and that is the increased demand for oil, in particular from Asian economies. Over the last decades, hundreds of millions of people have been lifted out of poverty. A strong middle class has taken root and continues to grow rapidly, producing an ever-expanding appetite for oil.
Finally, NAT in particular stands to benefit from the fact that the supply of Suezmax tankers will remain at historic low levels for at least the next two or three years. Environmental regulations, increased steel and production costs, and higher interest rates make investing in new ships quite challenging. A smaller order book for new tankers has always helped our industry.
As the owner of a versatile fleet of Suezmax tankers, NAT is ideally positioned to meet the opportunities and challenges of this year and beyond.
I am highly optimistic about the future, and wish you and your families the best for 2023!
Yours sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd
