Nordic American Tankers Ltd (NYSE: NAT) – Report June 30, 2022 (Second quarter 2022) – an unbroken string of 100 quarters of dividend payments. Ship values and rates are up
Nordic American Tankers reported a significant improvement in its average time charter equivalent (TCE), reaching $20,080 per day per ship in Q2 2022, up from $8,870 in Q1 2022. Adjusted EBITDA rose to $14.2 million compared to a negative $7.7 million in the prior quarter. The company declared a dividend of $0.03 per share, the 100th payment since its inception, payable on October 12, 2022. With a historic low orderbook of only 13 new suezmax tankers, NAT's fleet of 20 vessels is positioned to benefit from a tightening market.
- Average TCE increased to $20,080 per day, significantly higher than $8,870 in Q1 2022.
- Adjusted EBITDA reached $14.2 million, improving from -$7.7 million in the previous quarter.
- Declared a dividend of $0.03 per share, marking the 100th quarterly payout.
- Fleet of 20 suezmax tankers positioned to benefit from a tight market due to low newbuilding orders.
- Net loss of -$4.0 million for Q2 2022, though improved from -$27 million in Q1.
- Dependence on external geopolitical factors for oil transportation, which could impact operational performance.
Tuesday, August 30, 2022
Dear Shareholders and Investors,
Please see HIGHLIGHTS and the enclosed 2Q 2022 report below.
Highlights:
- The average time charter equivalent (TCE) for our fleet during the second quarter of 2022 came in at
$20,080 per day per ship, which is a substantial improvement compared with the first quarter of$8,870 per day per vessel. The third quarter has started at an even stronger pace. This obviously bodes well for our suezmax tankers. - As this year has shown, energy security is at the top of the global agenda. More oil is clearly needed. Given the geopolitical realities, oil will have to be transported over longer distances than in the past. This is positve for our fleet of suezmax tankers, which offer flexibility in the marketplace.
- The orderbook for new suezmax tankers scheduled to join the global fleet currently stands at only 13 ships (
2% of the world suezmax fleet). This is a historic low by any measure, and major shipyards have limited capacity to deliver more suezmax tankers before 2026. NAT has 20 one million barrel suezmax vessels on the water. Our fleet is in an excellent position to reap the benefits of a tight market. - Adjusted EBITDA for the second quarter improved significantly and came in with a positive
$14.2 million . This compares with an EBITDA of -$7.7 million in the first quarter of the year. We recorded a net loss of -$4.0 million or an EPS of -$0.02 for the second quarter 2022 compared to the first quarter, which saw a net loss of -$27 million and an EPS of -$0.14 .
- Our dividend payment for the second quarter is our one hundreth quarterly payout to our shareholders. We are proud of this achievement, a record that is unmatched by any other public tanker company. In aggregate, more than
$49 per share have been distributed over the years. The dividend number 100 will be 3 Cent ($ 0.03) per share and will be payable on October 12, 2022 to shareholders on record as of September 15, 2022. NAT is a dividend-driven company, and with improved earnings, higher dividends can be expected. - NAT has one of the lowest debt levels among publicly listed tanker companies. 15 of our ships are financed through a cooperation with a financial institution in Dallas, Texas, where the current gross borrowing is about USD 10 mill per ship. At the time of this report there are 20 vessels in the NAT fleet. Separate financial arrangements are in place for the other 5 vessels. The value of the NAT fleet has increased strongly in the recent past.
- The first of our recent newbuildings was delivered on May 14th and our second newbuilding was delivered on June 30, 2022. Both vessels have commenced six-year time charter contracts, ensuring earnings, cashflow and financial stability.
- The sale of our last 2002-built suezmax took place in July at a price of about
$16 million . The proceeds from the sale were used to pay down debt. - Financial information for the second quarter of 2022 and for other periods is included in the attached report.
For contacts, please see at the end of this communication.
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.
Contacts:
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391
Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 72 41 71
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FAQ
What is the dividend amount for Nordic American Tankers in Q2 2022?
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What is the average time charter equivalent for NAT's fleet in Q2 2022?
How did NAT's adjusted EBITDA perform in Q2 2022?
