Nordic American Tankers Ltd (NYSE: NAT) – one more vessel sold – Strategic moves continue through one more sale
NAT has announced the sale of a 2002 built vessel, enhancing its financial strength and maneuverability amid market volatility. The sale adds approximately USD 15 million to the company's funds, bringing total sales from three vessels to USD 45 million. Additionally, NAT has secured two long-term contracts worth over USD 100 million for newbuildings, expected to improve cash flow and profitability. Financing of the newbuildings is also in place, amounting to USD 90 million. The company is strategically positioned in the Suezmax tanker sector.
- Sale of three vessels resulted in proceeds of USD 45 million.
- Two long-term contracts valued over USD 100 million signed, enhancing cash flow and profitability.
- Financing for newbuildings secured, totaling USD 90 million.
- None.
Friday, March 4, 2022
Dear Shareholders and Investors,
In our message of July 28, 2021, we advised you of our strategic moves to adjust our fleet.
The “Nordic Sirius” (2000 built) was sold in October 2021 and the “Nordic Mistral” (2002) in February 2022. In this message, we announce that we now have agreed the sale of another 2002 built vessel to a first class reputable buyer.
The vessel will be delivered to its new owners before the end of March. The sales reduce the NAT debt. The Wall Street listed NAT has a strong balance sheet. Through the sale of the third vessel, the solidity and maneuverability of NAT is enhanced. In the present volatile times, we have improved our position through the above mentioned transactions. The net price for NAT is about USD 15 mill per vessel, in total USD 45 mill.
The position of NAT has been further enhanced through two valuable long-term contracts for our two newbuildings for delivery by mid-2022. The value of these contracts are well in excess of USD 100 million, improving the NAT cash flow, profitability and solidity.
As highlighted in an interview with the undersigned on the US based CNBC a few days ago, uncertain geopolitical events often increase the need for alternative sourcing of oil. The concept of “hoarding” comes into play. The tanker industry is key to solving these challenges, providing for expanded transportation work for our ships. As in the past, we focus solely on Suezmax vessels, which can load one million barrels each.
This message illustrates a busy NAT period:
- Financing of our two newbuildings are in place (about USD 90 mill.).
- A strategic and important transaction involving Oman has been agreed. Scope: More than USD 100 mill.
- Sales of three vessels have been concluded. Proceeds USD 45 mill.
The elements above are strengthening NAT substantially.
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 recent sales has NAT completed?
What is the value of the new contracts secured by NAT?
How much debt reduction does NAT achieve through vessel sales?
What are NAT's plans for newbuildings?
How does NAT's recent activity improve its position in the market?
