Link to the complete 4th Quarter 2017
report:http://hugin.info/159489/R/2167307/834315.pdf
Hamilton, Bermuda, February 8, 2017.
Nordic American Offshore Ltd ("NAO" or the
"Company") owns and operates a fleet of 10 Platform Supply Vessels
(PSV) each averaging approximately 4,000 DWT in size and with an
average age just over 4 years. The vessels are primarily engaged in
the North Sea offshore market. We are now optimistic for the North
Sea market and we have decided to activate our 3 modern vessels in
lay-up after which all our vessels are active. Having
an attractive fleet, with all our vessels fully operational,
improved market conditions should allow for immediate improvement
in our financial results.
Results for the fourth quarter came in lower
compared with third quarter 2017. The Net Operating Result was
-$7.1m for 4Q2017 as compared with -$4.8m for 3Q2017. The Adjusted
Net Operating Result[1] was -$2.8m as compared to -$0.2m for
3Q2017. 4Q2017 showed an improvement on 4Q2016 of about $1.5
million.
The basic features of NAO are similar to the
business model of the NYSE listed tanker company Nordic American
Tankers Limited ("NAT"). NAT holds 16.1% of NAO's common shares.
The Executive Chairman of NAO and his immediate family hold 13.4%
of NAO's commons shares.
The Board of Directors of NAO has declared a
dividend of $0.02 per share for 4Q2017 to shareholders of record as
of February 23, 2018. The payment of the dividend is expected
to take place on or about March 13, 2018. Since its establishment
in late 2013, NAO has paid dividends for 16 consecutive quarters,
totaling $2.67 per share, including the dividend to be paid
March13, 2018.
NAO pursues a conservative financial policy. At
the end of 4Q2017, the net debt[2] per vessel was $10.2 million.
The Company has a waiver for certain loan covenants, which expires
in April 2018 and we expect this to be extended.
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.
For further details on our financial position,
please see the financial information reported below and this entire
release. Our 2016 Annual Report (Form 20-F) contains information
about NAO. This report was filed with the SEC April 24, 2017.
It is also available on our web site at www.nao.bm.
Strategy Going Forward
The main elements of NAO's strategy are based on
quarterly dividends, low G&A costs and liquidity in the
stock.
We seek to achieve a competitive cash yield and
a satisfactory Total Return[3], a precise measure of value
creation.
NAO is committed to protecting its underlying
earnings, dividend potential and strong balance sheet. We shall
endeavor to safeguard and further strengthen NAO's position in a
deliberate, predictable and transparent way.
We encourage investors interested in the
offshore sector to consider buying shares in NAO.
Link to the graph:
http://hugin.info/159489/R/2167307/834315.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:
Gary J. WolfeSeward & Kissel LLPNew York, USATel: +1 212 574
1223
Marianne Lie, Executive Vice Chair Nordic American Offshore Ltd.
Tel.: +47 91 64 55 06
Bjørn Giæver, CFONordic American Tankers LimitedTel:
+1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Executive ChairmanNordic American Offshore
Ltd.Tel: +1 866 805 9504 or +47 90 14 62 91
Web-site: www.nao.bm
[1] Adjusted Net Operating Result represents Net Operating
Result before depreciation and non-cash administrative.
charges.
[2] Net debt is working capital less long term debt divided by
10 vessels.
[3] Total Return is defined as stock price plus dividends,
assuming dividends are reinvested in the stock.
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/3718c1b6-d702-437b-8fb0-6723410fb2ca
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