Nordic American Tankers Ltd (NYSE: NAT) – Rates for our one million barrel Suezmaxes are going up

Rhea-AI Summary

Nordic American Tankers (NAT) reports a positive market outlook with recent contracts securing daily rates between USD 40,000 and USD 55,000. This positions NAT to generate over USD 200 million annually, significantly exceeding daily operating costs of USD 8,000 per ship. The company anticipates becoming debt-free within one to two years and has maintained a strong dividend track record, paying out for 97 consecutive quarters. The management remains optimistic about the continuity of this upswing in the tanker market.

Positive

• Recent contracts secured with daily rates between USD 40,000 and USD 55,000.
• Projected annual revenue exceeds USD 200 million, well above operational costs.
• Potential for becoming debt-free in one to two years.
• History of paying dividends for 97 consecutive quarters.

Negative

• None.

Wednesday, April 13, 2022

Dear Shareholders and Investors,

We see a clear upswing in the market now. We have recently fixed three ships at rates ranging from USD 40,000 to USD 55,000 per day with a duration from 30 up to 70 days.

A large part of our fleet is operating in the sort term spot market. 

Based on current rates, NAT would generate more than USD 200 million on an annualized basis above and beyond the daily operating costs of USD 8,000 per ship.

In this scenario, NAT can become debt free in a year or two, just as it has been in the past.

Dividends have been paid for 97 consecutive quarters and will always remain a priority for NAT.

It is our obligation to provide our investors with relevant information.

We expect the upswing to continue.

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

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 is the recent revenue outlook for Nordic American Tankers (NAT)?

Nordic American Tankers expects to generate over USD 200 million annually based on current contracts, significantly exceeding its daily operating costs.

How does NAT plan to manage its debt?

NAT anticipates becoming debt-free within one to two years as it capitalizes on favorable market conditions.

What are the daily operating costs for Nordic American Tankers?

NAT's daily operating costs are approximately USD 8,000 per ship.

How long has NAT been paying dividends?

NAT has paid dividends for 97 consecutive quarters, indicating a strong commitment to returning value to shareholders.

What is the current market condition for NAT?

NAT reports a clear upswing in the market, supported by stable charter rates and a strong operational outlook.