NAT $35.72 Strong earnings, dividend up 136%!
Nordic American Tanker Shipping Ltd. (NYSE: NAT) - Announces Dividend and Earnings in respect of the 1st Quarter of 2008
Monday May 5, 4:39 am ET
HAMILTON, BERMUDA--(MARKET WIRE)--May 5, 2008 --
Hamilton, Bermuda, May 5th, 2008
Nordic American Tanker Shipping Ltd. ("Nordic American" or "the Company") today announced its results for the 1st quarter of 2008. The Company's results improved substantially in 1Q08 compared with the two proceeding quarters. Dividend for 1Q08 of $1.18 was 136% per share up on 4Q07 when the dividend was $0.50 per share. The strong spot market during 1Q08 produced time charter earnings equivalent to $46,600 per day for our vessels in the spot market - compared with an average of about $27,000 per day during 4Q07. The strong market has continued in the second quarter. So far in 2Q08 the spot freight rate level for our vessels is significantly higher than what we achieved for 1Q08. The Company has now declared a dividend for 43 consecutive quarters since the autumn of 1997 when our first three vessels were delivered.
Highlights:
* The Board of Directors has declared a dividend of $1.18 per share
for the 1st quarter of 2008. The dividend is expected to be paid
on June 3rd, 2008, to shareholders of record as of May 23rd,
2008.
* Net income for 1Q08 was $0.78 per share based on the average
number of shares outstanding during the quarter - 29,975,312 -
the same number of shares issued and outstanding as of December
31st, 2007.
* In 1Q08 total offhire was 28 days related to planned drydockings.
* Our fleet now consists of 14 double hull suezmax tankers
including the two newbuildings to be delivered in 4Q09 and in
April 2010. In the autumn of 2004 the Company had three suezmax
tankers.
* We are now starting to see the income and cost benefits from
consolidation of the commercial and technical functions; a
development that can be expected to continue.
* The conversion of oil tankers into dry cargo vessels and into
vessels for the offshore oil industry has continued, thereby
moderating the growth in the world tanker fleet. Our two
newbuildings are on schedule with planned deliveries in 4Q09 and
April 2010. However, a general tendency of delays at some yards
can now be expected, dampening the supply growth of tanker
tonnage.
* In April the Company extended its $500 million Credit Facility by
three years - from September 2010 up to September 2013 - on the
same terms as agreed when the Credit Facility was established in
September 2005.
