Nordic American Tankers Remain Bullish
Wednesday, June 26, 2013
Herbjorn Hansson
: Photo courtesy of Nordic American Tankers

Nordic chairman, Herbjorn Hansson
, in a letter to shareholders, believes that the tanker markets remain soft, due primarily to the excess supply of vessels;  but the longer term outlook is more encouraging.

Extracts from the letter are as follows:

"The order book for new vessels is declining and starting in 2014 we expect only a modest number of newbuildings will be launched.  We also expect older vessels will continue to be scrapped.  Consequently, the suezmax tanker markets should start tightening again.  

In early June, we announced that our subsidiary, Orion Tankers Limited, had renewed its commercial agreement with a subsidiary of ExxonMobil Corporation for two years. This important contract demonstrates the oil major`s continued faith in the company`s sound financial position and validates management`s dedication to safety and quality operations of its large, high standard suezmax fleet.

Based upon proceeds from our follow-on offering of shares in April this year and undrawn amounts from our $ 430 million credit facility, the company has the financial resources to expand its fleet, which now numbers 20 ships. Due to extensive delays, we cancelled our acquisition of a 2013 built suezmax tanker in June, with full return of our deposit. But this does not diminish in any way our interest in purchasing additional vessels in this market, as long as it is done in a prudent manner which also could include new buildings.

Going forward, I feel strongly that Nordic American is in the best possible position to navigate the global economic seas, be they calm or stormy."

Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Danelec Marine Expands in Brazil

Press release - Danelec Marine has announced that it is expanding its presence in Brazil by naming Telnav Telecomuniçacões Navais a Certified Service Center. With

MARAD Backs Emissions Reduction Projects

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced it will provide more than $1 million to support the development of two new emission-reducing maritime solutions.

Michelle Obama to Christen Navy's Newest Submarine

U.S. First Lady Michelle Obama will join builder General Dynamics Electric Boat, a wholly owned subsidiary of General Dynamics, in christening Illinois (SSN-786), the U.

Tanker Trends

Teekay LNG Partners Declare Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended September 30, 2015. The

TMS Cardiff Gas Orders First LPG Carriers

TMS Cardiff Gas Ltd. has signed a contract with Hyundai Heavy Industries of Korea for the construction of two 78,700 cbm LPG carriers with the option to build another two.

Odfjell's Tanker Overhaul Seeks to Slash Emissions by 20%

Norwegian tanker shipper Odfjell announced it is upgrading the propulsion systems aboard 19 of its chemical tanker vessels in a move that aims to reduce its fuel


Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,

Smith Taken on Rolls-Royce Holdings Board

Rolls-Royce Holdings plc today announces the appointment of Sir Kevin Smith CBE as a Non-Executive Director.  Sir Kevin will join the Board with effect from

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Port Authority Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1759 sec (6 req/sec)