Nordic American Tankers Remain Bullish

MarineLink.com
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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

Great Lakes Shipyard to Build Guatemalan Harbor Tug

U.S. shipbuilding and repair yard Great Lakes Shipyard informs it has signed a contract to build another of its HandySize Class, 3,400 HP twin-screw tugboat for

BAE Systems Welcomes Record Number of Paid Interns

More than 140 university students from across the country are being given a unique insight into working life at BAE Systems, as part of the company’s 12-week summer internship program.

Tanker Trends

Oil Soars in Biggest One-day Rally in Years

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

N-KOM: New VLCC Size Floating Dock

Nakilat-Keppel Offshore & Marine (N-KOM), the joint-venture shipyard of Keppel Offshore & Marine and Nakilat, continues to see strong interest for its ship repair services in 2015,

Finance

Oil Soars in Biggest One-day Rally in Years

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

ASRY 2015 Strategy Combats Challenging Market

Up to May 2015, ASRY (Arab Shipbuilding & Repair Yard), was seeing encouraging results from it’s 2015 strategy to combat the widespread challenges facing the maritime repair market,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.4138 sec (2 req/sec)