Nordic American Tankers Ltd (NYSE: NAT) – Firm contracts concluded
Nordic American Tankers Ltd. announced two new contracts for its suezmax vessels, significantly enhancing revenue potential. The first contract involves a 40 to 60-day charter at a net TC rate of USD 17,000 per day, while the second contract is for six to seven months, also at USD 17,000 per day. With average operating costs around USD 8,000 per day, these contracts suggest a positive financial outlook. The company owns 25 suezmax vessels, including two newbuilds expected in 2022, indicating a robust operational capacity.
- New contracts at a net TC rate of USD 17,000/day, significantly above market rates.
- Contracts provide a strong indication of future revenue stability.
- None.
Monday, July 19, 2021
Dear Shareholders and Investors,
Rates for our suezmax ships may change very quickly as communicated in the message below.
1) A few days ago we signed a contract for one of our suezmax vessels going via the Suez Canal from the West to the East – with planned discharge in China.
The net TC rate to us is about USD 17,000 per day for 40 days which could extend to 60 days.
2) Last week, we also signed a contract which is lasting for minimum six or could last for seven months at a net TC rate to us of about
USD 17,000 per day.
The average operating costs for our ships are about USD 8,000 per day per ship. The two ships load the cargoes more or less immediately. Our contractual partners are first class companies.
Our rates – 1) & 2) - are strongly up compared with some reports, indicating rates of USD 4,000 to USD 5,000 a day or even lower in reports produced by outside parties.
Our two recent contracts are at very different levels (USD 17,000/day), a strong signal for the way forward.
NAT has 25 suezmax vessels, including two newbuildings to be delivered in 2022.
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.
NAT is a New York listed company based in Bermuda.
Contacts:
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Founder, Chairman & CEO
Nordic American Tankers Ltd
Tel: +1 866 805 9504 or +47 90 14 62 91
FAQ
What are the recent contracts signed by NAT?
What is the duration of the new contracts for NAT?
How do the new rates compare to market rates for NAT?
What is the average operating cost for NAT's vessels?
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