Nordic American Tankers Ltd (NYSE: NAT) – In an active period several projects concluded, enhancing NAT earnings and solidity.
On February 18, 2022, Nordic American Tankers (NAT) reported significant developments including the sale of two vessels, "Nordic Sirius" and "Nordic Mistral," generating over USD 30 million in cash. Additionally, NAT secured six-year time charter contracts with Asyad Shipping Co for two new vessels, projected to yield over USD 100 million in freight income. Following these transactions, NAT now controls 23 Suezmax Tankers, enhancing their fleet capacity. The company expresses a positive outlook, stating, 'The way forward is upwards.'
- Generated over USD 30 million from the sale of two vessels.
- Secured six-year time charter contracts with Asyad Shipping Co, expected to generate over USD 100 million in freight income.
- Increased fleet capacity to 23 Suezmax Tankers.
- None.
Friday, February 18, 2022
Dear Shareholders and Investors,
In our message of July 28, 2021 we advised you of our program going forward.
As a follow up of that message several important developments in NAT have taken place:
Firstly, in October 2021 NAT announced the sale of “Nordic Sirius” built in 2000.
Secondly, we announced earlier this month the sale of “Nordic Mistral” built in 2002. This is to inform you that the vessel was delivered to its new owners today February 18, 2022.
These two transactions have brought in more than USD 30 million in cash to NAT.
Thirdly, a few days ago NAT announced the time charter contracts for the two new vessels we have ordered from Samsung in South-Korea. The vessels will be delivered to us in May and June this year.
The Charters are with Asyad Shipping Co, a company controlled by the Sultanate of Oman. The contracts will start direct from delivery in May and end June this year.
These Time Charter contracts will last for six years, securing earnings and cash flows. Asyad Shipping Co is a first class Charterer. In total well above USD 100 million in freight income to NAT will enhance the earnings, cashflow and solidity of NAT.
Following the above transactions, Nordic American Tankers controls a fleet of 23 Suezmax Tankers which can load one million barrels each.
The way forward is upwards.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited 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 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
FAQ
What were the recent sales announced by Nordic American Tankers (NAT)?
How much freight income is expected from the new charters secured by NAT?
What is the current fleet size of Nordic American Tankers (NAT)?
When will the new vessels for NAT be delivered?
