Nordic American Tankers Ltd (NYSE: NAT) – Sale of one more vessel, accounting impairment charges to be recorded in the 2021 Annual Report
April 26 2022 - 7:09AM
Tuesday, April 26, 2022
Dear Shareholders and Investors,
No tanker company on Wall Street has the strategy of NAT. NAT
does not buy and sell Suezmaxes as a business proposition – the
policy is based on the premise to keep the vessels to the end of
their lives. Recently prices are up and we have sold a few
vessels.
In July 2021 we announced a plan to sell ships in combination
with buying ships. We have sold four Suezmaxes now, generating a
cash injection of about USD 60 million to NAT. Vessel number four
was delivered to the new owners on April 12, 2022.
We expect that our fleet will grow with the objective of having
about 30 Suezmax vessels the next few years.
We have informed the market that we receive two newbuildings –
one in May and one at the end June this year. They have both
achieved contracts of six years each, in total twelve years with
first class contractual partners, at solid rates creating earnings
and stable cash flow.
In light of our recent vessels sales, we have concluded that we
should record an impairment charge on our accounts for 2021. This
charge is $51.9 million related to our vessels built in 2002 and
2003. The impairment charge is a non-cash accounting matter. It has
nothing to do with our business as such. We have previously report
a year-to-date impairment charge of $8.4 million in our 4Q21
Earnings Release. This number will now be adjusted to $60.3 million
in our 2021 20-F (Annual report).
These accounting matters do not affect our 2022 numbers.
The tanker market has developed positively in 2022 and the spot
voyage contracts announced lately will contribute significantly to
our cash position and ability to pay dividend.
NAT is on the way to its objective of becoming debt free.
For contacts, please see at the end of this communication.
www.nat.bm
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.
NAT is a Bermuda based company.
Contacts:
Gary J. WolfeSeward & Kissel LLPNew York, USATel: +1 212 574
1223
Bjørn Giæver, CFO
Nordic American
Tankers Ltd
Tel: +1 888 755
8391 or +47 91 35 00 91
Herbjørn Hansson, Founder, Chairman & CEONordic American
Tankers LtdTel: +1 866 805 9504
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