Nordic American Tankers Ltd (NYSE: NAT) – Russia/Ukraine - impact on our business
June 13 2022 - 10:13AM
Monday, June 13, 2022
Dear Shareholders and Investors,
Our business is constantly shaped by news. As we approach the
fifth month of the crisis between Russia and Ukraine, we can
better see how this situation is reshaping the flow of energy
itself.
A key element in this new reality is sea transportation. The NAT
fleet of suezmax tankers is more important than ever in meeting the
challenges of this new energy landscape. The loading capacity of
our tankers is one million barrels each.
Two weeks ago, OPEC and Saudi Arabia agreed to a larger increase
in their oil production than the already-scheduled 400,000
barrels. The new increase now will be 648,000 barrels in July
and again in August. This translates to more oil on the water and
higher demand for the NAT suezmax tankers.
EU also agreed on a ban of Russian Oil. Europe imported about
one third of its oil from Russia before the events in Ukraine
unfolded.Going forward, Europe can be expected to source a
large part of this oil from other suppliers further away, such as
West Africa, Middle East and Americas. This translates to longer
distances and more need for our suezmax tankers.
Last time Nordic American had Russian oil on board our tankers
was in April 2021.
There is a strong pressure on oil producing countries to
increase their production. Oil is needed to create welfare – this
is an established fact for decades.
The low supply of new oil tankers joining the global fleet in
the coming years is positive for NAT. Major Asian shipyards report
there is limited yard capacity to deliver large oil tankers before
2026, creating favorable supply/demand dynamics for our fleet of
versatile suezmax tankers.
For contacts, please see at the end of this communication.
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:
Bjørn Giæver, CFO
Nordic American
Tankers Ltd
Tel: +1 888 755
8391
Herbjørn Hansson, Founder, Chairman & CEONordic American
Tankers LtdTel: +1 866 805 9504
www.nat.bm
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