Nordic American Tankers Ltd (NYSE: NAT) – An active period involving several transactions

Rhea-AI Summary

Nordic American Tankers (NYSE: NAT) has announced multiple strategic transactions in a recent active period. The company has exercised a purchase option for a 2018-built Suezmax tanker from a financing partner on favorable terms. Additionally, NAT has sold a 2003-built vessel to a UK-based owner, expected to generate a cash injection of USD 22.5 million when the sale closes in the second half of February.

The company emphasizes its solid financial position and flexibility, indicating plans for future expansion. NAT reaffirms its commitment to maintaining dividend payments as a priority for shareholders.

Positive

• Purchase of newer 2018-built Suezmax tanker on favorable terms
• Sale of older 2003 vessel generating USD 22.5 million in cash
• Strong financial position with demonstrated flexibility
• Commitment to dividend payments

Negative

• Reduction in fleet size through vessel sale

 

Wednesday, January 22, 2025

 

Dear Shareholders and Investors,

In the recent past, NAT has carried through several transactions, reflecting a very active period.

NAT has declared the purchase option for a 2018-built Suezmax tanker on favorable terms from a close financing partner. 

Furthermore, we have also sold a 2003-built vessel to a UK based owner.

This sale which is expected to close in the second half of February, will produce a cash injection of USD 22.5 million.

NAT is in a very solid position and the transactions above reflect our financial flexibility.

Going forward, we see expansion on the horizon.

We wish to assure shareholders that dividend always will be a priority.

Please also see our home page www.nat.bm

 

Sincerely,

Herbjorn Hansson
Founder, Chairman & CEO

Nordic American Tankers Ltd.                                                      

 

 

 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 cash will NAT receive from the sale of its 2003-built vessel?

NAT will receive USD 22.5 million from the sale of its 2003-built vessel, with the transaction expected to close in the second half of February.

What new vessel is NAT acquiring in 2025?

NAT is exercising a purchase option for a 2018-built Suezmax tanker from a financing partner on favorable terms.

When will NAT complete the sale of its 2003-built vessel?

The sale of the 2003-built vessel is expected to close in the second half of February.

Will NAT continue paying dividends after these transactions?

Yes, NAT has explicitly stated that dividend payments will remain a priority for shareholders.

What are NAT's expansion plans following these transactions?

While NAT indicates that expansion is on the horizon, specific details about expansion plans were not provided in the announcement.