Link to the complete 3rd
Quarter 2016 report: http://hugin.info/159489/R/2056555/770316.pdf
Hamilton, Bermuda, November 14, 2016.
The operating cash flow[1] for Nordic
American Offshore Ltd. ("NAO" or "the Company") was -$3.4m in
3Q2016. NAO is better positioned compared with other companies in
the industry. During the quarter we saw a number of financial
restructurings. Access to financing is a competitive advantage for
NAO.
NAO has ten high-quality Platform
Supply Vessels (PSVs) built in Norway in the period 2012-2016. At
the end of the quarter seven of our ten vessels are in operation.
We continue to focus on developing the relationship with our
clients. NAO sees opportunities to grow the Company. Acquisitions
have to be accretive for our earnings and dividends over time.
The basic features of NAO are
similar to the successful structure of the NYSE listed Nordic
American Tankers Limited.
The Board has declared a dividend
of $0.03 per share for 3Q2016 to shareholders on record as of
November 23, 2016. The payment of the dividend is expected to take
place on or about December 7, 2016. Since its original
establishment in late 2013, NAO has paid dividends for 11
consecutive quarters, totaling $2.57 per share, including the
dividend to be paid about December 7, 2016.
The North Sea is at the present
time the geographical market area for NAO.
Key points to consider:
-
Earnings per share (EPS) has been: -$0.42 for
3Q2016, -$0.36 for 2Q2016 and -$0.13 for 3Q2015.
-
EPS does not take into account financial risk.
i.e. the debt level of a company.
-
Operating cash flow per share has been: -$0.16
for 3Q2016, -$0.12 for 2Q2016 and $0.04 for 3Q2015.
-
NAO had at the end of 3Q2016 total net debt of
$127.5m for its ten vessel fleet, or about $12.7m per vessel. The
credit facility of $150m matures in March 2020.
-
NAO has a low cash breakeven level of about
$11,500 per day per vessel, including financing and G&A
costs.
Financial Information
The Board has declared a cash
dividend of $0.03 per share for 3Q2016 to shareholders of record as
of November 23, 2016. The payment date is on or about December
7, 2016.
Net Loss (accountingwise) was
-$8.6m in 3Q2016. In 2Q2016 and 3Q2015 the comparable figures were
-$7.4m and -$3.1m, respectively.
The Company's operating cash flow
was -$3.4m in 3Q2016. In 2Q2016 and 3Q2015 operating cash flow was
-$2.5m and $1.0m, respectively.
At the end of 3Q2016, net debt per
NAO vessel was $12.7m. NAO has in place until early 2020 a
non-amortizing credit facility of $150m. Several service companies
in our sector are in a difficult financial position. Going forward,
NAO sees opportunities for expansion.
We concentrate on keeping our
vessel operating costs low, while always maintaining our strong
commitment to safe operations. As we expand our fleet, we do not
anticipate that our administrative costs will rise
correspondingly.
As reported July 18, 2016,
Marianne Lie, who has a wealth of experience from the offshore
sector and from top positions in other companies, assumed position
as Executive Vice Chair of NAO. Tor Øyvind Bjørkli, the Managing
Director of NAO, is reporting to Ms. Lie. This reorganization
strengthens NAO.
For further details on our
financial position for 3Q2016, 2Q2016 and 3Q2015, please see later
in this release. Our 2015 Annual Report (Form 20-F) contains a
large amount of information about NAO. This report was filed with
the SEC March 23, 2016 and can be found on our web site
www.nao.bm.
The Fleet
Our fleet is comprised of ten
high-quality PSVs. All our trading vessels operate in the UK and in
the Norwegian sectors of the North Sea. The vessels may operate in
either sector or elsewhere. The significant fuel efficiency, and
corresponding low emissions of our ships are attractive features
for our clients.
The Company's objective is to
ensure spot or term employment for the fleet. The specifications of
the Company's vessels are by and large the same.
Strategy Going
Forward
The main elements of NAO's
strategy is based on quarterly dividends, low debt, low G&A
costs, high liquidity in the stock and full transparency. Growth of
the fleet is a central part of our strategy
Our dividend policy has the
objective to achieve a competitive cash yield and a positive Total
Return[2] over
time.
NAO is firmly committed to
protecting its underlying earnings, dividend potential and strong
balance sheet.
We shall endeavor to safeguard and
further strengthen the position in a deliberate, predictable and
transparent way.
We encourage prospective investors
interested in the Offshore Supply Vessel sector to consider buying
shares in NAO.
* * * * *
Link to the
graph: http://hugin.info/159489/R/2056555/770316.pdf
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," "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 PSV market, as a result of changes in the general
market conditions of the oil and natural gas industry which
influence charter hire rates and vessel values, demand in platform
supply vessels, our operating expenses, including bunker prices,
dry docking and insurance costs, governmental rules and
regulations or actions taken by regulatory authorities as well as
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
the availability of financing and refinancing, vessel breakdowns
and instances of off-hire and other important factors described
from time to time in the reports filed by the Company with the
Securities and Exchange Commission.
Contacts:
Herbjørn
Hansson, Chairman
Nordic American Offshore Ltd.
Tel: +1 866 805 9504 or +47 90 14 62 91
|
Jan H. A.
Moller, Head of I&R & Financial Manager
Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or +47 90 11 53 75 |
Marianne
Lie, Executive Vice Chair
Nordic American Offshore Ltd.
Tel.: +47 91 64 55 06
|
Tor-Øyvind Bjørkli, Managing Director
Nordic American Offshore Ltd.
Tel: +47 90 62 70 14 |
Turid M.
Sørensen, CFO
Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or +47 90 57 29 27
|
Gary J.
Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223 |
Web-site:
www.nao.bm |
|
[1] Operating
cash flow is an important dimension in the industry, but it is a
non-GAAP measure. Please see later in this announcement for a
reconciliation of operating cash flow to income (loss) from vessel
operations.
[2] Total
Return is defined as stock price plus dividends, assuming dividends
are reinvested in the stock.
3rd Quarter 2016 Result
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nordic American Offshore Ltd via
Globenewswire
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