Nordic American Tankers Ltd (NYSE: NAT) – Report March 31, 2023 (First quarter 2023) – History in the making!
Monday, May 22, 2023
Dear Shareholders and Investors,
Highlights:
The average Time Charter Equivalent (TCE) for our spot vessels (15) during the first quarter of 2023 came in at $60,005 per day per ship. Including vessels on term contracts (4), the total average NAT TCE was $51,902 per day per ship. This is the second strongest first quarter TCE ever achieved in NAT’s 28 year history. Our operating costs are about $8,000 per day per vessel.
The net profit for 1Q 2023 landed at $46.9 million or an earnings per share (EPS) of $0.22. The previous quarter saw a net profit of $36 million and an EPS of $0.17. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for 1Q 2023 came in with a positive $67.7 million, compared to an adjusted EBITDA of $51.1 million in 4Q 2022.
The board has decided that the dividend after the first quarter of 2023 will be 15 cents ($0.15) per share. The Dividend will be payable on July 6, 2023 to shareholders on record as of June 15, 2023.
The seasonal slowdown seen so far in 2Q 2023 has already bottomed, at levels that in previous years would have been perceived as peak season earnings. This goes to illustrate that the scarcity of Suezmax tankers should secure a very interesting market for NAT going forward. Seasonal variations will occur, but we expect earnings to be at higher levels than in the past due to the low orderbook of new ships.
65% of our spot voyage days for the second quarter of 2023 have now been booked at an average TCE of $42,111 per day per ship. Spot rates have now turned upwards, but if this level is achieved for the full second quarter, it is a second quarter level only achieved three times in the past for NAT.
On the demand side, last year was focused on Europe’s energy challenge following the Russian invasion in Ukraine. This year will see the populations in China and other nations returning to mobility and travel in a big way. We expect the re-emergence of India and the Far East after the pandemic to have a significant effect on oil markets. This should add to an already tight market for NAT.
NAT has one of the lowest debt levels among publicly listed tanker companies. Our net debt stood at $168 million equal to $8.9 million per ship at March 31, 2023.
The NAT fleet of versatile suezmax tankers offers flexibility in loading and discharging ports. Through careful voyage planning and adjustment of speed of our vessels, the NAT fleet is reducing emissions.
Financial information for the first quarter of 2023 and for other periods is included later in this report.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
