Nordic American Tankers Ltd (NYSE: NAT) – Report June 30, 2022 (Second quarter 2022) – an unbroken string of 100 quarters of dividend payments. Ship values and rates are up
August 30 2022 - 7:29AM
Tuesday, August 30, 2022
Dear Shareholders and Investors,
Please see HIGHLIGHTS and the enclosed 2Q 2022 report
below.
Highlights:
- The average time charter equivalent (TCE) for our fleet
during the second quarter of 2022 came in at $20,080 per day per
ship, which is a substantial improvement compared with the first
quarter of $8,870 per day per vessel. The third quarter has started
at an even stronger pace. This obviously bodes well for our suezmax
tankers.
- As this year has shown, energy security is at the top
of the global agenda. More oil is clearly needed. Given the
geopolitical realities, oil will have to be transported over longer
distances than in the past. This is positve for our fleet of
suezmax tankers, which offer flexibility in the
marketplace.
- The orderbook for new suezmax tankers scheduled to join
the global fleet currently stands at only 13 ships (2% of the world
suezmax fleet). This is a historic low by any measure, and major
shipyards have limited capacity to deliver more suezmax tankers
before 2026. NAT has 20 one million barrel suezmax vessels on the
water. Our fleet is in an excellent position to reap the benefits
of a tight market.
- Adjusted EBITDA for the second quarter improved
significantly and came in with a positive $14.2 million. This
compares with an EBITDA of -$7.7 million in the first quarter of
the year. We recorded a net loss of -$4.0 million or an EPS of
-$0.02 for the second quarter 2022 compared to the first quarter,
which saw a net loss of -$27 million and an EPS of
-$0.14.
- Our dividend payment for the second quarter is our one
hundreth quarterly payout to our shareholders. We are proud of this
achievement, a record that is unmatched by any other public tanker
company. In aggregate, more than $49 per share have been
distributed over the years. The dividend number 100 will be 3 Cent
($ 0.03) per share and will be payable on October 12, 2022 to
shareholders on record as of September 15, 2022. NAT is a
dividend-driven company, and with improved earnings, higher
dividends can be expected.
- NAT has one of the lowest debt levels among publicly
listed tanker companies. 15 of our ships are financed through a
cooperation with a financial institution in Dallas, Texas, where
the current gross borrowing is about USD 10 mill per ship. At the
time of this report there are 20 vessels in the NAT fleet. Separate
financial arrangements are in place for the other 5 vessels. The
value of the NAT fleet has increased strongly in the recent past.
- The first of our recent newbuildings was delivered on
May 14th and our second newbuilding was delivered on June 30, 2022.
Both vessels have commenced six-year time charter contracts,
ensuring earnings, cashflow and financial stability.
- The sale of our last 2002-built suezmax took place in
July at a price of about $16 million. The proceeds from the sale
were used to pay down debt.
- Financial information for the second quarter of 2022
and for other periods is included in the attached
report.
For contacts, please see at the end of this
communication.
Sincerely,
Herbjorn HanssonFounder, Chairman & CEONordic American
Tankers Limited
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.
Contacts:
Bjørn Giæver, CFONordic American Tankers LtdTel: +1
888 755 8391
Alexander Kihle, Finance ManagerNordic American
Tankers LtdTel: +47 91 72 41 71
www.nat.bm
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