Nordic American Tankers Limited (NYSE: NAT) – Potential US sanctions involving tankers trading on Iran & Venezuela

Rhea-AI Summary

Nordic American Tankers (NAT) addresses shareholder concerns regarding potential US sanctions on tankers trading with Iran and Venezuela. Recent reports suggest the US Treasury may increase the number of sanctioned vessels from 80 to 130, potentially impacting the tanker supply-demand balance. NAT emphasizes its compliance with US sanctions globally. The company aims to maintain transparency with shareholders and ensure business continuity in light of these developments.

Positive

• NAT emphasizes compliance with US sanctions, which may strengthen investor trust.
• Potential tightening of tanker supply could benefit NAT's market position if demand increases.

Negative

• Expansion of sanctions could limit operational flexibility and market access for NAT.
• Increased regulatory scrutiny may elevate operational risks and costs.

 

July 2, 2020

Dear Shareholders and Investors,


We receive questions about potential US sanctions involving tankers trading on Iran & Venezuela. What would this mean for NAT?

Earlier this week there was an article in the international press, to the effect that the US Treasury is considering to expand its list of tankers under sanctions from 80 to 130 vessels. If implemented, such a level of tonnage restrictions has the potential of tightening the balance between supply and demand of tankers.

As we mentioned in our press release of June 18, NAT is always complying with sanctions imposed by the US in all parts of the world.

Best regards,

Herbjørn Hansson
Founder, Chairman & CEO

Nordic American Tankers Ltd.                                                           www.nat.bm  

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.

NAT is a Bermuda based company.

Contacts:       

Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223

Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91       

Herbjørn Hansson, Chairman & CEO
Nordic American Tankers Limited
Tel: +1 866 805 9504 or +47 90 14 62 91

FAQ

What did NAT say about US sanctions on tankers?

NAT addressed shareholder concerns about potential US sanctions that could expand the list of affected tankers, emphasizing its compliance with current regulations.

How might increased tanker sanctions affect NAT?

Increased sanctions could tighten the balance of supply and demand in the tanker market, potentially impacting NAT's operations and market access.

What is the current number of sanctioned vessels related to NAT?

Currently, there are 80 vessels under US sanctions, with reports suggesting a potential increase to 130.

What is the potential impact of the US sanctions on NAT's shareholders?

Shareholders may face heightened risks related to operational constraints and market access due to expanded sanctions.