Link to the complete 1st Quarter
2018 report:
http://hugin.info/159489/R/2192775/849087.pdf
Hamilton, Bermuda, May 15, 2018.
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 and
with an average age of about 4 years. The vessels are primarily
engaged in the North Sea offshore market.
During 1Q2018, encouraged by
improved market conditions, we decided to mobilize the three
laid-up vessels and to restore our operational fleet to full
capacity. Two of the three vessels are now joining our active
fleet. We wish to see a more sustainable market before we activate
our last ship which is ready for classification.
We remain moderately optimistic
for the North Sea market and we have seen a healthy number of term
fixtures in the market place. Having an attractive fleet, with 9 of
our 10 vessels fully operational, improved market conditions should
allow for immediate improvement in our financial results.
Results for the first quarter 2018
came in lower compared with fourth quarter 2017. The Net Operating
Loss was -$8.4m for 1Q2018 as compared with -$7.1m for 4Q2017
(accounting numbers).
The Adjusted Net Operating Result[1] was -$4.1m
(cash loss) as compared to -$2.8m for 4Q2017.
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 common shares. He is also the Chairman & CEO of
NAT.
The Board of Directors of NAO has
declared a dividend of $0.01 per share for 1Q2018 to shareholders
of record as of May 25, 2018. The payment of the dividend is
expected to take place on or about June 8, 2018. Since its
establishment in late 2013, NAO has paid dividends for 17
consecutive quarters, totaling $2.68 per share, including the
dividend to be paid June 8, 2018.
NAO pursues a conservative
financial policy. At the end of 1Q2018, the net debt[2] per vessel
was $10.9 million.
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.
Strategy Going
Forward
The main elements of NAO's
strategy are based on quarterly dividends, low G&A costs and
liquidity in the stock. NAO has about 35,000
shareholders.
We seek to achieve a competitive
cash yield and 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/2192775/849087.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. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
Marianne Lie, Executive Vice Chair
Nordic American Offshore Ltd.
Tel.: +47 91 64 55 06
Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Executive Chairman
Nordic 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.
1st Quarter 2018 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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