Nordic American Tankers Ltd (NYSE: NAT) – Report December 31, 2022 (Fourth quarter & full year 2022) - Rates & Dividends are up

Rhea-AI Summary

Nordic American Tankers Ltd (NAT) reported a robust performance in 4Q 2022, with a net profit of $36 million, a significant increase from $10 million in 3Q 2022. This resulted in an EPS of $0.17, up from $0.05. Average Time Charter Equivalent (TCE) for spot vessels was $57,340 per day, significantly up 76% from the previous quarter. The company declared a quarterly dividend of $0.15 per share, payable on March 28, 2023. NAT maintains strong financial health with low debt levels and a cash position of approximately $90 million as of now, compared to $34.7 million a year prior. Positive market conditions are expected to continue into 1Q 2023.

Positive

• Net profit for 4Q 2022 increased to $36 million, up from $10 million in 3Q 2022.
• EPS rose to $0.17 from $0.05 quarter-over-quarter.
• Quarterly dividend increased to $0.15 from $0.05 in the previous quarter.
• Average TCE for spot vessels at $57,340 per day, representing a 76% increase from the prior quarter.
• Cash position improved to approximately $90 million compared to $34.7 million a year ago.
• NAT maintains one of the lowest debt levels among publicly listed tanker companies.

Negative

• Revenues affected negatively by periodic drydockings occurring mainly in 4Q 2022.

 

Monday, February 27, 2023 

 

Dear Shareholders and Investors,

 

The 4Q 2022 Net result is more than $50 million better than the same quarter 2021. The direction of NAT is unquestionably upwards.

 

Highlights: 

1) The average Time Charter Equivalent (TCE) for our spot vessels (15) during the fourth quarter of 2022 came in at $57,340 per day per ship. Including vessels on term contracts (4), the total average NAT TCE was $49,035 per day per ship. This was 76% up from the third quarter of 2022. Our operating costs are about $8,000 per day per vessel.

2) The net profit for 4Q 2022 more than tripled from 3Q 2022 and landed at $36 million or an Earnings per share (EPS) of $0.17. the previous quarter saw a net profit of $10.0 million and an EPS of $0.05. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for 4Q 2022 came in with a positive $51.1 million, compared to an adjusted EBITDA of $28.4 million in 3Q 2022. The bulk of our 2022 periodic drydockings took place in the fourth quarter and as such affected our revenues negatively. 

3) Strong rates have continued into first quarter this year. So far, 72% of our spot voyage days have been booked at an average TCE of $60,630 per day per ship. With the 1Q 2023 bookings, we expect the first quarter 2023 net results to further improve vis-à-vis the strong 4Q 2022.

4) The dividend for the fourth quarter of 2022 will be 15 cents ($0.15) per share compared to 5 cents in the previous quarter. The Dividend will be payable on March 28, 2023 to shareholders on record as of March 14, 2023.

5) NAT has one of the lowest debt levels among publicly listed tanker companies. Our net debt stood at $197 million equal to $10.3 million per ship at December 31, 2022. The turnaround in the market is further illustrated by our cash position that stood at $59.6 million December 31, 2022 compared to $34.7 million same time a year ago. Currently our cash position is about $90 million.

6) As we have seen in the past, political uncertainty creates demand for the transport of oil. As a consequence of Russia’s invasion of Ukraine and the West’s strong reaction, energy security is of paramount concern.  Oil will have to be sourced from further away than in the past, creating longer voyages. Uncertain times also encourage hoarding among some buyers, adding to demand for oil and for the NAT tankers.

7) NAT in particular stands to benefit from the fact that the supply of Suezmax tankers will remain at historic low levels for at least the next two or three years. Only 14 new ships are currently on order, representing only 2% of the existing fleet. This is a 30 year low. Environmental regulations, increased steel and production costs, and higher interest rates make investing in new ships challenging. A small order book for new tankers has always been positive for our industry.

8) The NAT fleet of versatile suezmax tankers offers flexibility in loading and discharging ports. Through careful voyage planning and adjustment of speed of our vessels, the NAT fleet is reducing emissions.

9) Financial information for the fourth quarter of 2022 and for other periods is enclosed in the full report below.

Sincerely

Herbjørn 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:       

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

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

 

    

 

Attachment

• NAT 4Q2022 report

FAQ

What is Nordic American Tankers Ltd's dividend for 4Q 2022?

The dividend for 4Q 2022 is $0.15 per share, payable on March 28, 2023.

How did NAT perform in 4Q 2022 compared to previous quarters?

NAT reported a net profit of $36 million for 4Q 2022, more than tripling from $10 million in 3Q 2022.

What is the average Time Charter Equivalent for NAT in 4Q 2022?

The average TCE for NAT's spot vessels was $57,340 per day in 4Q 2022.

What is NAT's financial situation regarding debt?

NAT has one of the lowest debt levels among publicly listed tanker companies, with a net debt of $197 million.

What factors are driving demand for NAT's services?

Increased geopolitical tensions, such as the Russia-Ukraine conflict, are driving demand for oil transport, benefiting NAT.