Nordic American Tankers Ltd (NYSE: NAT) – Sale of Suezmax tanker (2003 built)

Rhea-AI Summary

Nordic American Tankers (NAT) has announced a sales agreement for a Suezmax tanker built in 2003, valued at $21 million net. The sale is expected to close in the fourth quarter of 2022, with proceeds directed toward debt reduction, aiming for a debt-free status. The buyer is a prominent international energy company. NAT continues its commitment to dividends, having paid them for 100 consecutive quarters. Recent share purchases by the founder and board member highlight confidence in the company's future, despite market uncertainties.

Positive

• Sale of a Suezmax tanker for $21 million to reduce debt.
• Commitment to a steadfast dividend policy with 100 consecutive quarters of payments.
• Recent share purchases by top executives indicate confidence in the company's prospects.

Negative

• None.

 

Thursday, September 29, 2022

 

Dear Shareholders and Investors,

Today we have entered into a sales agreement for a 2003-built suezmax tanker. The price is $21 million net to NAT. The vessel will be delivered to its new owner in 4Q 2022. The cash proceeds will be used to reduce our debt. A NAT objective is to become debt free as was the case earlier.

The buyer is a major international energy company.

As advised the investor market earlier this week, I purchased shares in NAT, and my son, Alexander Hansson, NAT Board Member, has also lately continued to accumulate shares.

As in the past, the Hansson family is the largest private shareholder group in Nordic American Tankers.

NAT has paid dividend for 100 consecutive quarters. The dividend policy is steadfast.

The market for our ships remains firm.

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

 
Sincerely,

Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Limited 

 

 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     

 

www.nat.bm 

FAQ

What is NAT's recent sales agreement about?

NAT agreed to sell a 2003-built Suezmax tanker for $21 million, with the proceeds aimed at debt reduction.

How will the sale affect NAT's financial status?

The sale will help NAT reduce its debt, moving towards a debt-free status.

How long has NAT been paying dividends?

NAT has paid dividends for 100 consecutive quarters.

Who bought the Suezmax tanker from NAT?

The buyer is a major international energy company.

What do recent share purchases by NAT executives indicate?

They indicate confidence in the company's future performance.