Nordic American Tankers Ltd (NYSE: NAT) – NEWS: The last 2002 built vessel sold

Rhea-AI Summary

Nordic American Tankers (NAT) announced the sale of its last remaining Suezmax tanker, the Nordic Moon, for approximately $16 million. The vessel will be delivered to its new owners in June 2022. Following this, NAT plans to take delivery of a newbuilding from Samsung Shipyard, which will commence a six-year contract upon delivery. The company emphasizes its strong balance sheet, with lower debt compared to peers in the US tanker industry, indicating a positive phase of development.

Positive

• Sale of Nordic Moon tanker for approximately $16 million enhances cash flow.
• Newbuilding from Samsung Shipyard will start a six-year contract, boosting long-term revenue.
• Low debt levels compared to other US-listed tanker companies support financial stability.

Negative

• None.

Tuesday, June 7, 2022

Dear Shareholders and Investors, 

We wish to inform you that we have sold the last of our originally four 2002 built suezmax tankers, the “Nordic Moon”.

The price is about $16 million net to NAT. The vessel will be delivered to the new owners during June 2022.

We plan to take delivery of a newbuilding from Samsung Shipyard in South Korea at the end of June. It will start on a six year contract as from delivery.

The first newbuilding from Samsung in this round was delivered to us in mid - May. The vessel started on a contract for 6 years when delivered from the yard. A strong balance sheet is essential. The NAT debt is low compared with other US listed tanker companies.

NAT is in a positive phase of development as illustrated in this message.

For contacts, please see at the end of this communication.                                           

 

                                                    

 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:       

Bjørn Giæver, CFO                                                             
Nordic American Tankers Ltd                                             
Tel: +1 888 755 8391                                 

Herbjørn Hansson, Founder, Chairman & CEO
Nordic American Tankers Ltd
Tel: +1 866 805 9504     

www.nat.bm  

FAQ

What is the significance of NAT's tanker sale in June 2022?

NAT sold its last Suezmax tanker, the Nordic Moon, for $16 million, which improves cash flow for the company.

How will NAT's newbuilding impact its revenue?

The newbuilding from Samsung will begin a six-year contract, significantly contributing to NAT's long-term revenue.

How does NAT's debt compare to other US-listed tanker companies?

NAT's debt levels are comparatively low, indicating stronger financial stability against its peers in the US tanker industry.

When will the Nordic Moon be delivered to its new owners?

The Nordic Moon tanker will be delivered to its new owners during June 2022.