Nordic American Tankers Ltd (NYSE: NAT) – An active period going forward
Nordic American Tankers (NAT) has announced its fleet renewal and growth strategy for 2025. The company plans to acquire two or three ships while selling an equal number. As a first step, NAT has agreed to sell one of its Suezmax tankers (built in 2003) for USD 22.5 million, with the transaction expected to complete in Q1 2025.
The company is working with its long-term financing partners, Beal Bank (Dallas) and Ocean Yield (New York), to support this initiative. These financial arrangements aim to increase liquidity and enhance financial flexibility while maintaining NAT's commitment to dividend payments and a strong balance sheet. The company highlights its track record of paying dividends for 109 consecutive quarters since its New York listing in 1995.
Nordic American Tankers (NAT) ha annunciato la sua strategia di rinnovamento e crescita della flotta per il 2025. L'azienda prevede di acquisire due o tre navi, vendendo un numero equivalente. Come primo passo, NAT ha concordato di vendere uno dei suoi tanker Suezmax (costruito nel 2003) per 22,5 milioni di USD, con la transazione attesa per il completamento nel primo trimestre del 2025.
L'azienda sta collaborando con i suoi partner di finanziamento a lungo termine, Beal Bank (Dallas) e Ocean Yield (New York), per sostenere questa iniziativa. Questi accordi finanziari mirano ad aumentare la liquidità e migliorare la flessibilità finanziaria mantenendo l'impegno di NAT per i pagamenti dei dividendi e un bilancio solido. L'azienda sottolinea il suo storico di pagamento dei dividendi per 109 trimestri consecutivi dalla sua quotazione a New York nel 1995.
Nordic American Tankers (NAT) ha anunciado su estrategia de renovación y crecimiento de flota para 2025. La compañía planea adquirir dos o tres barcos mientras vende un número igual. Como primer paso, NAT ha acordado vender uno de sus tanqueros Suezmax (construido en 2003) por 22,5 millones de USD, con la transacción prevista para completarse en el primer trimestre de 2025.
La empresa está trabajando con sus socios de financiación a largo plazo, Beal Bank (Dallas) y Ocean Yield (Nueva York), para apoyar esta iniciativa. Estos acuerdos financieros tienen como objetivo aumentar la liquidez y mejorar la flexibilidad financiera, manteniendo el compromiso de NAT con los pagos de dividendos y un balance sólido. La empresa destaca su historial de pago de dividendos durante 109 trimestres consecutivos desde su cotización en Nueva York en 1995.
노르딕 아메리칸 탱커스 (NAT)는 2025년을 위한 선대 갱신 및 성장 전략을 발표했습니다. 이 회사는 두 척 또는 세 척의 선박을 인수할 계획이며, 같은 수만큼 판매할 예정입니다. 첫 번째 단계로, NAT는 2003년에 건조된 Suezmax 유조선 중 한 척을 2250만 달러에 판매하기로 합의하였으며, 거래는 2025년 1분기 중에 완료될 것으로 예상됩니다.
회사는 이 이니셔티브를 지원하기 위해 장기 금융 파트너인 Beal Bank (달라스) 및 Ocean Yield (뉴욕)와 협력하고 있습니다. 이러한 재무 약정은 유동성을 증가시키고 재무 유연성을 강화하는 것을 목표로 하며, NAT의 배당금 지급 및 강력한 재무 상태에 대한 헌신을 유지합니다. 이 회사는 1995년 뉴욕에 상장된 이후 109분기 연속으로 배당금을 지급해 온 기록을 강조합니다.
Nordic American Tankers (NAT) a annoncé sa stratégie de renouvellement et de croissance de la flotte pour 2025. L'entreprise prévoit d'acquérir deux ou trois navires tout en vendant un nombre équivalent. Comme première étape, NAT a convenu de vendre un de ses tankers Suezmax (construit en 2003) pour 22,5 millions de USD, la transaction étant prévue pour être finalisée au premier trimestre 2025.
L'entreprise travaille avec ses partenaires de financement à long terme, Beal Bank (Dallas) et Ocean Yield (New York), pour soutenir cette initiative. Ces accords financiers visent à accroître la liquidité et à améliorer la flexibilité financière tout en maintenant l'engagement de NAT envers les paiements de dividendes et un bilan solide. L'entreprise souligne son historique de paiement de dividendes depuis 109 trimestres consécutifs depuis son introduction en bourse à New York en 1995.
Nordic American Tankers (NAT) hat seine Strategie zur Erneuerung und Erweiterung der Flotte für 2025 bekannt gegeben. Das Unternehmen plant den Erwerb von zwei oder drei Schiffen, während gleichzeitig eine gleich große Anzahl verkauft wird. In einem ersten Schritt hat NAT vereinbart, einen seiner Suezmax-Tanker (gebaut 2003) für 22,5 Millionen USD zu verkaufen, wobei der Abschluss der Transaktion im ersten Quartal 2025 erwartet wird.
Das Unternehmen arbeitet mit seinen langfristigen Finanzierungspartnern, Beal Bank (Dallas) und Ocean Yield (New York), zusammen, um diese Initiative zu unterstützen. Diese finanziellen Vereinbarungen sollen die Liquidität erhöhen und die finanzielle Flexibilität verbessern, während das Engagement von NAT für Dividendenzahlungen und eine starke Bilanz aufrechterhalten wird. Das Unternehmen hebt seinen Erfolgsweg bei der Zahlung von Dividenden über 109 aufeinanderfolgende Quartale seit seinem Börsengang in New York im Jahr 1995 hervor.
- Sale of 2003 Suezmax tanker for USD 22.5 million, strengthening balance sheet
- Planned fleet renewal and growth with 2-3 new vessel acquisitions
- Enhanced financial flexibility through partnerships with Beal Bank and Ocean Yield
- Consistent dividend payment track record of 109 consecutive quarters
- Potential short-term fleet reduction during transition period
- Capital expenditure requirements for new vessel acquisitions
Insights
The announced fleet renewal strategy represents a carefully calculated move in the current Suezmax tanker market. The sale of the 2003-built vessel for
The planned acquisition of 2-3 newer vessels, balanced against similar disposals, indicates a focus on fleet modernization rather than pure expansion. This approach should enhance operational efficiency through reduced fuel consumption and maintenance costs, while potentially commanding premium charter rates. The involvement of established financing partners Beal Bank and Ocean Yield suggests favorable financing terms, important for maintaining NAT's strong dividend policy.
The transaction structure merits attention:
- The
$22.5 million sale proceeds provide immediate balance sheet flexibility - The Q1 2025 delivery timing aligns with typical seasonal strength in tanker markets
- The strategy preserves fleet capacity while upgrading asset quality
NAT's emphasis on maintaining its 109-quarter dividend streak while pursuing fleet renewal demonstrates a balanced approach to capital allocation. The partnership with major financial institutions provides the flexibility needed for this strategic initiative without overleveraging the balance sheet, a important consideration in the cyclical tanker market.
Wednesday, February 5, 2025
Dear Shareholders and Investors,
A major project for 2025 is to renew and grow our fleet. We plan to buy two or three ships and to sell two or three.
As a first step, last week we agreed to sell one of our suezmaxes, built in 2003, which will net our company USD 22.5 million and thus strengthen our balance sheet. The buyer will take over the vessel in Q1 2025.
We are helped in this major project by our two longtime financing partners, Beal Bank bases in Dallas, and Ocean Yield, whose parent company is based in New York.
As always, our financing is driven by our main goals of prioritizing dividends and retaining a sturdy balance sheet.
Since NAT became stock listed in New York in 1995, we have paid dividends for 109 consecutive quarters.
The transactions with Beal Bank and Ocean Yield will increase our liquidity and strongly enhance our financial flexibility.
We look forward to a very active year for NAT.
Sincerely,
Herbjorn 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.
Contacts:
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391
Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 724 171
FAQ
How much will NAT receive from the sale of its 2003 Suezmax tanker?
What are NAT's fleet renewal plans for 2025?
Who are NAT's main financing partners for the 2025 fleet renewal project?
How many consecutive quarters has NAT paid dividends?
When will the buyer take over NAT's sold Suezmax vessel?
