Nordic American Tankers Ltd. (NYSE:NAT) - Exceptionally strong tanker market from which NAT is benefitting.
October 07 2019 - 08:04AM
Hamilton, Bermuda, October 7, 2019
Dear Shareholders & Investors,
Two weeks ago we wrote to you about the strong market
improvement for our Suezmax tankers. We have for a long time
informed you of this anticipated upswing in the tanker market.
However, seeing is believing and if anyone had doubts, last
week, the international shipbroking firm of Clarkson Platou
Research reported the largest week-on-week increase in the history
of their freight index. From Thursday to Friday last week, reported
Suezmax rates jumped 60% on the day and 400% on the month!
NAT’s uniform fleet of 23 Suezmax tankers have 21 units trading
in the open spot market, ready to benefit from strengthening
freights.
Presently the Suezmax spot market is reported to about
$68,000/day, and rising. The NAT operating costs are about
$8,000/day per ship.
A seasonal upturn was already in the making. However, the
additional combination of increased demand from refineries around
the world ramping up their production to supply low sulphur fuels
for 2020 and reduced supply of new vessels are important structural
factors.
The temporary uncertainty around the Saudi Arabian oil
production has created additional demand
pressure.
The latest developments serve as important reminders of the
volatility of the tanker market. The last three years were the
exceptions, with most tanker companies experiencing consecutive
quarters of below break-even earnings. As we have mentioned on
several occasions, we believe this market bottomed out during 2018
and we will see further improvement going forward.
Our third quarter 2019 results will not be much different from
our second quarter results. The upturn seen these last three weeks
will filter through in our fourth quarter results. Our earnings as
of September 30, 2019 will be released on Monday November 25, 2019,
before NYSE opening.
In conclusion, NAT is in a very strong position with 21 of our
23 Suezmaxes in the spot market. We are able to benefit directly
from this exceptional run up in Suezmax freight rates.
Going forward, we are excited about the prospects for the end of
this year and further down the road.
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: |
|
Gary J.
WolfeSeward & Kissel LLPNew York, USATel: +1 212 574 1223
|
|
Bjørn Giæver,
CFONordic American Tankers LimitedTel: +1 888 755 8391 or
+47 91 35 00 91 |
|
Herbjørn Hansson, Chairman & CEONordic American Tankers
LimitedTel: +1 866 805 9504 or +47 90 14 62 91 |
|
- Nordic American Tankers October 7 2019
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