Nordic American Tankers Ltd (NYSE: NAT) – Report September 30, 2022 (Third quarter 2022) - Good times for our Suezmax tankers. Increased dividends expected.

Rhea-AI Summary

Nordic American Tankers (NAT) reported a strong performance in Q3 2022, achieving a net profit of $10 million, marking a significant turnaround from a $4 million net loss in Q2. The average Time Charter Equivalent (TCE) rose to $27,850 per day, with 74% of Q4 spot days booked at $54,100 per day. A dividend of $0.05 per share will be paid on December 20, 2022, with expectations for Q4 to potentially double. NAT maintains low debt levels of $224 million and anticipates favorable market conditions driven by geopolitical factors and low new tanker orders.

Positive

• Q3 2022 net profit of $10 million, up from a loss of $4 million in Q2.
• Average TCE increased to $27,850, with Q4 bookings significantly higher at $54,100.
• Dividend of $0.05 per share to be paid on December 20, 2022; potential for Q4 dividend to double.
• Low orderbook for new tankers supports future earnings potential.
• NAT has one of the lowest debt levels, at $224 million, positioning the company favorably.

Negative

• None.

Wednesday, November 30, 2022

 

Dear Shareholders and Investors,

 

Please see HIGHLIGHTS and the enclosed 3Q 2022 report below.
 

Highlights: 

1) The average Time Charter Equivalent (TCE) for our fleet during the third quarter of 2022 came in at $27,850 per day per ship, up from the second quarter of $20,080 per day per vessel. Rates have risen dramatically during the fourth quarter and so far, 74% of our spot voyage days have been booked at an average TCE of $54,100 per day per ship. Our operating costs are $8,000 per day per ship.

2) The net profit for 3Q 2022 was $10.0 million or an Earnings per share (EPS) of $0.05. The second quarter saw a net loss of -$4 million and an EPS of -$0.02. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for 3Q 2022 doubled from the previous quarter and came in with a positive $29.6 million, compared to an EBITDA of $14.2 million in 2Q 2022.

3) As previously announced, the dividend for the third quarter of 2022 will be 5 cents ($0.05) per share and will be payable on December 20, 2022 to shareholders on record as of December 6, 2022. Based on our fourth quarter performance so far, we anticipate the dividend for the fourth quarter could double, compared to the third quarter payout. This dividend is expected to be announced in February 2023 and paid in March 2023.

4) Political uncertainty has always stimulated demand for our ships. Given the geopolitical realities we face now, oil will have to be transported over longer distances than in the past, increasing ton-mile and demand for our tankers.

5) The orderbook for new suezmax tankers scheduled to join the global fleet currently stands at 11 ships (2% of the world suezmax fleet) through 2024. A low orderbook is a leading indicator of improved utilization and earnings for our tankers.

6) The combination of ton-mile expansion and low supply growth is bullish news for our vessels for 2023 and beyond. NAT has 19 one-million barrel suezmax tankers on the water, making money every day, Sundays and Holidays included.

7) The NAT fleet of versatile suezmax tankers offers flexibility in loading and discharging around the world that helps our clients manage their requirements efficiently under quickly changing circumstances.

8) Through careful voyage planning and adjustment of speed of our vessels, the NAT fleet is reducing emissions.

9) NAT has one of the lowest debt levels among publicly listed tanker companies. Our net debt stood at $224 million equal to $11.2 million per ship at September 30, 2022. In the solid tanker market we now see, our debt is reduced by the day. The objective of NAT is to become more or less debt free, which was the case in the past.

10) Financial information for the third quarter of 2022 and for other periods is included in the report attached below.

 

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

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 3Q2022 report

FAQ

What is the net profit reported by Nordic American Tankers for Q3 2022?

Nordic American Tankers reported a net profit of $10 million for Q3 2022.

What is the Time Charter Equivalent (TCE) for NAT in Q4 2022?

The average TCE for NAT in Q4 2022 is booked at $54,100 per day.

When will the dividend for Q3 2022 be paid to shareholders?

The dividend for Q3 2022 will be paid on December 20, 2022.

What is the expected dividend for Q4 2022 for Nordic American Tankers?

The expected dividend for Q4 2022 could double compared to the Q3 payout.

What is the current debt level of Nordic American Tankers?

NAT's current debt level stands at $224 million.