Nordic American Tankers Ltd (NYSE: NAT) – Report as per March 31, 2024 – Dividend is a top priority.

Rhea-AI Summary

Nordic American Tankers (NYSE: NAT) reports a net profit of $15.1 million for Q1 2024, closely matching the $17.5 million from Q4 2023. The company declared a 12 cents per share dividend for the 107th consecutive quarter, payable on July 18, 2024, to shareholders on record as of June 28, 2024. The average Time Charter Equivalent (TCE) for spot vessels stood at $34,320 per day per ship, while the overall fleet TCE averaged $33,570 per day per ship, against a daily operating cost of $9,000 per ship. NAT boasts one of the lowest debt levels among publicly listed tanker companies, emphasizing strong demand and favorable market dynamics for its versatile suezmax fleet.

Positive

• Net profit of $15.1 million for Q1 2024, nearly matching Q4 2023's $17.5 million.
• Declared a dividend of 12 cents per share for Q1 2024, continuing a 107-quarter streak.
• Average TCE for spot vessels at $34,320 per day per ship.
• Overall fleet TCE averaged $33,570 per day per ship.
• Daily operating costs per ship are about $9,000.
• Strong demand and favorable market dynamics for NAT's fleet.
• One of the lowest debt levels among publicly listed tanker companies.

Negative

• Net profit decreased from $17.5 million in Q4 2023 to $15.1 million in Q1 2024.
• Dividend yield may not be attractive given the current stock price.

 

Wednesday, May 29, 2024

 

Dear Shareholders and Investors,

 

Highlights: 

 

Ninety day periods offer a short-term snapshot of a company, but it is also important to view the long-term picture. The values of our assets have seen a significant increase over the past years. The direction of NAT is unquestionably upward, with further room to grow.

 

1. The first quarter of 2024 continued at a strong pace with healthy earnings. The Net Profit for the first quarter of 2024 came in at $15.1 million which is similar to the previous quarter (4Q23) with a Net Profit of $17.5 million.
   
   
2. For the first quarter of 2024 the dividend is 12 cents ($0.12) per share. This is our 107th consecutive quarterly dividend. The dividend is payable July 18, 2024 to shareholders on record as of June 28, 2024.
   
   
3. The average Time Charter Equivalent (TCE) for our spot vessels during the first quarter of 2024 came in at $34,320 per day per ship. Including vessels on term contracts, the total average NAT TCE was $33,570 per day per ship. The daily operating costs per ship are about $9,000. Going forward, we clearly see strong demand for our vessels.
   
   
4. The supply-demand dynamics in the market for the fleet of NAT are favorable.
   
   
5. The NAT fleet of versatile suezmax tankers offer flexibility in loading and discharging ports. Through careful voyage planning and adjustment of speed of our vessels, we reduce emissions. Each individual ship in the NAT fleet is of excellent technical quality, as demonstrated in the vetting performance, the score board undertaken by the Oil Companies.
   
   
6. NAT has one of the lowest debt levels among publicly listed tanker companies. 

 

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.

 

Contacts:       

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

Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 724 171    

 

Attachment

• NAT 1Q2024 report

FAQ

What is the net profit of Nordic American Tankers (NAT) for Q1 2024?

The net profit for Q1 2024 is $15.1 million.

What is the dividend per share declared by NAT for Q1 2024?

NAT declared a dividend of 12 cents per share for Q1 2024.

When is the dividend payable to NAT shareholders for Q1 2024?

The dividend is payable on July 18, 2024, to shareholders on record as of June 28, 2024.

What is the average Time Charter Equivalent (TCE) for NAT's spot vessels in Q1 2024?

The average TCE for spot vessels is $34,320 per day per ship.

What is the overall fleet TCE for NAT in Q1 2024?

The overall fleet TCE is $33,570 per day per ship.

What are the daily operating costs per ship for NAT?

The daily operating costs per ship are about $9,000.

How is the debt level of NAT compared to other tanker companies?

NAT has one of the lowest debt levels among publicly listed tanker companies.

How does NAT describe the market dynamics for its fleet?

NAT describes the market dynamics for its fleet as strong and favorable.