NAT Buys Secondhand Suezmax Tanker
Shipowner Nordic American Tankers (NAT) on Thursday said it has entered an agreement to purchase a secondhand suezmax tanker.The South Korean built vessel has been "operated and well maintained by a top shipowner the last 6 to 7 years", Herbjorn Hansson, NAT founder, chairman and CEO, wrote in a letter to shareholders and investors."The vessel is purchased on a charter free basis and we intend to finance the purchase with a sale leaseback financing – an arrangement that has worked very well for us in the past," NAT said.
NAT Sells 19-year-old Suezmax Tanker
Nordic American Tankers (NAT) announced it has sold a 2003-built suezmax tanker for $21 million net. The buyer is a major international energy company, NAT said without disclosing the name of the company.The vessel will be delivered to its new owner in the fourth quarter of 2022.NAT said it will use the cash proceeds from the sale to reduce its debt as the company aims to become debt free.
NAT Suexmax Starts Time Charter
Nordic American Tankers Ltd (NAT) announced on Wednesday that one of its Suexmax tankers commenced a one-year time charter contract.The 2010-built tanker has gone to work with "one of the world’s largest energy companies" at a rate in excess of $ 30,000 per day, NAT said. The company did not reveal the name of the vessel."This is one example showing that NAT is well placed for the significant upswing we now see in rates for our ships," said Herbjorn Hansson, founder, chairman and CEO of Nordic American Tankers.The NAT fleet currently consists of 20 suezmax vessels, the company said, noting that the operating expenses of its vessels average $8,000 per day.
NAT Adds Two Suezmax Newbuilds
Nordic American Tankers said it has added two suezmax tankers to its fleet. The newbuilds, NAT's first delivered since 2018, both have long term contracts.The 157,094 dwt Nordic Harrier was delivered on May 13 from Samsung shipyard in South Korea. The second vessel, to be named Nordic Hunter, is 156,800 dwt and will be delivered from Samsung within the next few days, NAT said. The ships were ordered in 2020.Both tankers have six-year contracts with Oman's ASYAD Shipping Company. The time charters will generate an aggregate revenue of more than $100 million, New York-listed NAT said when it announced the deals in February.The newbuilds are fully financed via Ocean Yield, a company controlled by Kohlberg Kravis Roberts (KKR), which is headquartered in the U.S.
Samsung Delivers Suezmax Newbuild to NAT
Tanker shipping company Nordic American Tankers on Friday took delivery of a suezmax newbuild from shipbuilder Samsung Heavy Industries in South Korea.The 157,000-dwt crude oil tanker is named Nordic Harrier, which was the first NAT ship when becoming stocklisted on the New York Stock Exchange in 1995.The ship, which is on a 10-year bareboat charter to NAT from Norwegian shipowner Ocean Yield, will commence a contract for six years to ASYAD Shipping Company of the Sultanate of Oman. "The contract is producing earnings and cashflow as from delivery from the yard, creating financial stability and a further foothold in this important area," New York-listed NAT said in a letter to investors and shareholders.
NAT Inks Time Charters for Two Suezmax Newbuilds
Tanker shipping company Nordic American Tankers (NAT) announced Wednesday it has lined up six-year time charters for a pair of Suezmax newbuilds scheduled to be delivered from South Korea later this year.The contracts for the 156,800 dwt tankers are with Oman-based ASYAD Shipping Company, and they will commence upon delivery from the shipyard in May and June.Herbjorn Hansson, NAT board chairman, president, CEO, said, “Our business is expanding in the Middle East, which is an important area for our operations.
NAT Sells Another Suezmax
Tanker shipping company Nordic American Tankers (NAT) announced on Wednesday it has sold the 164,236 dwt Suezmax Nordic Mistral.New York-listed NAT did not reveal the buyer, but said the vessel is slated to be handed over to the new owner later this month. The 274-meter-long ship was built in 2002 by Hyundai Samho Heavy Industries in South Korea.The sale is NAT's second in recent months. In October 2021, the company announced the sale of 2000-built Nordic Sirius, since renamed Ocean Peri.NAT, which in July 2021 revealed plans to sell the vessels as part of a fleet renewal program, said it sold the two ships for about $30 million combined.NAT now controls a fleet of 23 Suezmaxes, including two 156,800 dwt newbuilds scheduled to be delivered from South Korea in May and June this year.
NAT Expects Tanker Market Lull Will Be Short Term
The recent slowdown in the oil tanker market is expected to be short-lived, shipowner Nordic American Tankers (NAT) said Friday in a letter to shareholders.NAT, which owns 25 suezmaxes including the two newbuilds on order from South Korean shipbuilder Samsung Heavy Industries for delivery in 2022, said it has been receiving many comments and questions regarding the current market situation."There has been a certain lull in the market recently, which we regard as a short term phenomenon," the company said. "NAT is in a positive phase of development."NAT, which is preparing to publish its results on November 16, said, "A company can go three ways: sideways, downwards or upwards.
NAT Secures Financing for Suezmax Newbuilds
Nordic American Tankers (NAT) told investors on Friday that it has lined up full financing for two new tankers on order from South Korea's Samsung Heavy Industries. The newbuilds are the first to be ordered by NAT since 2016.The shipowner said it entered into a financing agreement with a subsidiary of Ocean Yield ASA for the Suezmax pair, which are due for delivery in the first half of 2022. "It is an advantage to secure the long term financing for these two newbuildings at an early stage and with an existing lender," NAT said, adding it aims to become a debt free company.The financing is for up to 80% of the newbuilding price, and the agreements are based on a 10-year bareboat charter for each vessel.
NAT Orders First New Ships in Four Years
Nordic American Tankers (NAT) said it has ordered two suezmax newbuilds from South Korean shipbuilder Samsung Heavy Industries, the shipowner's first newbuild orders in four years as slumping shipbuilders lower prices to attract business."The combination of specifications, quality of yard, price, payment terms and deliveries make this an attractive investment for NAT and is consistent with our strategy to expand and renew our fleet," the company said in a letter to shareholders.The two new tankers, scheduled to be delivered in the first half of 2022, will grow NAT's suezmax fleet to 25 vessels.NAT said it will consider various financing alternatives prior to delivery.The payment terms of the newbuildings are 10/10/10/10 with 60% of the building price on deliveries…
Hermitage Offshore Services Appeals NYSE Delisting Decision
Offshore vessel owner Hermitage Offshore Services has appealed against the New York Stock Exchange's move to delist its shares.Hermitage Offshore Services (previously known as Nordic American Offshore) on August 12 filed for a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code, It cited a prolonged slump in global oil prices, driven in part by the global coronavirus pandemic, and its effect on the company’s business, as well as the inability to reach a financial restructuring deal with lenders out of court, as the reason for the move.Following Hermitage's Chapter 11 application, the NYSE then determined to initiate delisting procedures for the company’s common shares, to which the cash-strapped offshore vessel owner has now decided to appeal.
Hermitage Offshore Services Files for Chapter 11
Offshore vessel owner Hermitage Offshore Services, hit by prolonged low oil prices and business fallout from the coronavirus pandemic, said it has voluntarily filed for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.New York-listed Hermitage, part of the Scorpio Group, said it filed for Chapter 11 after failing to reach a financial restructuring deal with lenders out of court."While the company would have preferred to complete its financial restructuring out of court, it was unable to reach a consensual agreement with its lenders, which made filing Chapter 11 necessary to provide a single forum for all continuing conversations with its lenders…
Tanker Upswing Continues, Says NAT
Bermuda-based international tanker company Nordic American Tanker (NAT) said that it has the strongest tanker market that it has seen in decades.In NAT fleet of 23 suezmaxes, 21 are in the short term market, providing immediate benefit for nat. The fourth quarter is building a strong momentum for 2020."We expect this to continue. Political frictions often lead to a stronger tanker market," said the company.About 70% of the spot trading days of our fleet for 4Q19 have been booked at an average TCE of $34,000/day. Spot rates are continuing its upward momentum.The Time Charter equivalent (TCE) for our ships for the third quarter came in at $15…
NAT Bullish on Tanker Market
Bermuda-headquartered Nordic American Tankers (NAT) said that its tanker segment is on upswing mode following he strong market improvement for its Suezmax tankers."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,"pointed out the company.From Thursday to Friday last week, reported Suezmax rates jumped 60% on the day and 400% on the month, it said.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.
World Suezmax Fleet Counts 517 Vessels Now
The world Suezmax fleet (excl. shuttle, product & Jones Act tankers) counts 517 vessels at the end of 2Q2019, said Nordic American Tankers (NAT).During 2018, 28 suezmax vessels were delivered from the shipyards and 21 vessels were scrapped, the international tanker company said in an announcement."For 2019 we expect a similar number of new deliveries as in 2018. In 2020 we currently see 22 vessels scheduled for delivery," it said.The supply of tanker tonnage is inelastic in the short-term. When there are too many ships in an area, rates tend to go down. When there is scarcity of ships, rates tend to go up. Short-term spot tanker rates may be expected to be volatile.NAT pointed out that in light of trade war headlines currently…
NAT to Pass on Scrubbers
Bermuda-based international tanker company Nordic American Tankers Limited (NAT) has reiterated that it believes scrubbers are not a solution for the company based upon a conservative financial policy."NAT does not take on risk it does not have to," it said.An increased number of ports now prohibit or impose strict requirements on the use of scrubbers, which purify emissions from large ships.The scrubber cleans the exhaust from vessels for Sulfur and emit impure water into the sea, and that is what the ports now will put an end to. Therefore, we still do not see that this new requirement is an issue for NAT.Nordic American Tankers points to a Reuters article of July 04 on the potential ban by Norwegian authorities of scrubbers.NAT recalled its statement on October 24…
NAT Closes Busiest Year!
Bermuda-based Nordic American Tankers Limited (NAT) said in a press release that the last 12 months have been the busiest period for the international tanker company.Sale of 10 suezmax vessels and delivery of 3 new suezmax units took place in the last six months of 2018 and ensured a renewal of its fleet which count suezmaxes only. The operating costs for the NAT fleet came down further, a release said."Maximizing dividend is our strategy. We also aim at reducing the debt level and thereby lowering the cash break even further," NAT said.The new 5-year loan of $306 million that NAT announced in February this year, is a key element in this strategy of maximizing dividend and reducing debt…
NAT Extends TC for Suezmax Vessel
Nordic American Tankers Limited (NAT) has fixed a one year or more time charter (TC) for one of the NAT suezmax vessels.NAT's Samsung built suezmax, the Nordic Zenith, has obtained a term contract. The new contract is expected to commence on expiration of the present spot employment and it could last 12 to 15 months.The contract was entered into with the first-class charterer, Equinor, an energy company headquartered in Norway. Equinor is a major stocklisted company and one of the largest of its type worldwide."Last year we entered into a term contract with the same user for a period of minimum 3 years," said a press release from the Bermuda-based tanker company.Over the years, NAT has bought several vessels built at Samsung Shipyard in South Korea, including the Nordic Zenith.
World Suezmax Fleet Counts 514 Vessels
The world Suezmax fleet (excl. shuttle, product & Jones Act tankers) counts 514 vessels at the end of 1Q2019, said Nordic American Tankers (NAT).The total delivery during 2018 was 28 vessels, said a report by the international tanker company."For 2019 we expect a similar number of vessels as in 2018, and in 2020 we currently see 22 vessels scheduled for delivery. During 2018, 21 Suezmax vessels were scrapped," it said.According to the report, the world economy is enjoying its strongest upswing since 2010. What is good for the world economy and world trade is by nature positive for the crude oil tanker business. In addition to the role of major oil companies…
NAO Completes Vessel Acquisition
Bermuda-headquartered platform supply vessels (PSVs) operator Nordic American Offshore (NAO) announced that it has completed the previously announced acquisition of thirteen vessels from Scorpio Offshore Holdings Inc.Emanuele A. Lauro, Chairman and Chief Executive Officer, commented “With the completion of this acquisition and the first drawdown under our Equity Line, NAO has achieved critical short-term milestones of reducing our financial leverage and increasing our liquidity. We will now turn to our immediate operational goals which include the employment of our entire North Sea fleet within the month of May."The acquisition was done for 8,126,219 common shares at $2.7774/ share.
NAO Acquires 13 Vessels
Bermuda-based company Nordic American Offshore (NAO) announced that it has reached agreement with the lenders under the Company's $150 million Revolving Credit Facility, dated March 16, 2015 pursuant to which the lenders have agreed, upon satisfaction of certain conditions precedent by the Company, to the extension of waivers up until January 31, 2020.The owner and operator of platform supply vessels (PSVs) said in a press release that it has also announced that the lenders have committed, upon satisfaction of certain conditions precedent by the Company, to a new $ 132.9 million term loan facility with maturity of December 6, 2023 to refinance the Credit Facility…
Norway Cautious on Indian shipbreaking
The Council on Ethics of the Government Pension Fund Global (Oil Fund), Norway's $1 trillion sovereign wealth fund (SWF), said that it will turn its attention towards Indian shipbreaking practices.The SWF cautioned that this may well result in further divestments from shipping companies with poor shipbreaking records.In 2018, the Council on Ethics had already advised the fund to divest from companies, including container line Evergreen, selling their end-of-life vessels to shipbreaking yards located in Pakistan and Bangladesh “due to an unacceptable risk that the companies are contributing to serious environmental damage and gross violations of human rights”.KLP, Norway’s largest private pension fund, followed suit and blacklisted the same companies.
NAO Logs a Big Loss
Nordic American Offshore Ltd (NYSE: NAO) reported for the three months ended December 31, 2018, the company's net loss was $169.3 million, or $26.23 per basic and diluted loss per share, which included a non-cash impairment charge of $160.1 million, or $24.80 per basic and diluted. Excluding the impairment charge, the net loss for the fourth quarter of 2018 was $9.2 million, or $1.43 per basic and diluted loss per share. For the year ended December 31, 2018, the company's net loss was $197.3 million or $31.50 per basic weighted average and diluted loss per share, which included a non-cash impairment charge of $160.1 million. Excluding the impairment charge…