Nordic American Tankers' 2Q Report

By Michelle Howard
Monday, August 11, 2014

Cash  dividend of $0.12 and dividend-in-kind of NAO shares declared (worth $0.16/sh). Operational performance remains strong as  fundamentals improve.

 

The strong winter market at the beginning of the year subsided in 2Q2014. Refinery maintenance schedules and geopolitical factors affected our results this quarter in a weaker spring market. However, there are now reaffirmed indications that a recovery may be on the horizon. 3Q2014 has started on a more positive note than 2Q2014. The spikes in rates seen this year are a sign that the crude oil tanker market is becoming more balanced. During 2Q2014 we had cashflow from operations1 of $4.3m, compared with $27.1m in 1Q2014, -$10.6m in 2Q2013 and -$4.9m in 1Q2013.

 

 During 2012 and 2013, when the market was weak, we used the opportunity to place ships in planned drydock for maintenance to ensure the continued top technical quality of our vessels. During drydockings the classification societies certify the seaworthiness of our vessels, giving us confidence that the quality of our vessels ranks with the best in the industry. In 2014, NAT has undertaken two scheduled drydockings, both completed at the time of this report.

 

In June 2014 Nordic American Offshore Ltd. (NAO) completed a successful public offering of shares and was listed on the NYSE. Subsequently, the shares issued in the NAO November 2013 private placement in Norway were transferred to the NYSE. NAT participated in the NAO NYSE offering with $5.6m. Following the share distribution of NAO shares to NAT shareholders, NAT will own about 17% of NAO. At the time of this release, following the dividend-in-kind distribution to NAT shareholders, NAT has an unrealized gain of about $12m related to the investment in NAO. Our investment in NAO has a positive impact both accountingwise and cashwise.

 

On July 11, 2014, NAT declared a cash dividend of $0.12 per share payable to NAT shareholders of record as of July 25, 2014. The dividend is expected to be paid on or about August 12, 2014. In addition, as previously communicated, the dividend-in-kind with a value of about $0.16 per share will also be distributed to NAT shareholders in the form of NAO shares at about the same time. Since NAT commenced operations in the fall of 1997, the company has paid a dividend 68 times, with total dividend payments over the period amounting to $45.02 per share, including the dividend to be paid in August 2014.

 

In June and leading into July the market rebounded as refineries came back on line after scheduled maintenance and the so-called contango returned to the Brent crude market.

 

Key points to consider:

  •   Tanker rates achieved on average for 2Q2014 were $12,100 per day per vessel for our trading fleet, as against $26,300 per day achieved in 1Q2014.
  •   The company agreed to acquire two additional Suezmax vessels in June, bringing the fleet to 22 vessels. The vessels were delivered to us July 16 and August 4, respectively.
  •   Earnings per share in 2Q2014 was -$0.19, compared with $0.05 in 1Q2014, -$0.48 in 2Q2013 and -$0.59 for 1Q2013.
  •   On April 7, 2014, NAT announced an equity offering that resulted in net proceeds to the company of $113m.
  •   The undrawn part of our credit facility plus net working capital stood at about $387m at the end of 2Q2014.
  •   We continue to focus on cost efficiency - both in administration and  onboard our vessels.
  •   13 vessels were vetted (inspected by customers) during 2Q2014. NAT came out with excellent results, reflecting the quality of our fleet.
  •   NAT received a dividend of about $2.0m from its investment in NAO. It is expected that NAO will continue to produce dividends for NAT. NAO also contributes to reducing NAT's general and administrative costs.

 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Jet Edge Celebrates 30 Years in Waterjet Industry

Waterjet systems manufacturer Jet Edge, Inc. celebrated its 30th anniversary Sept. 3 with a special open house celebration. Jet Edge’s anniversary event included

TITAN Salvage Receives NAMEPA Award

The North American Marine Environment Protection Association (NAMEPA) announced earlier this month that Houston-based TITAN Salvage, a subsidiary of Crowley Maritime Corp.

MM&P Hopes to Pad Ranks with Brown Water Mariners

New York Harbor Tug Boat Captains and Crews, Staten Island Ferry Workers, Circle Line and Other Tourist Boat Crews Vote on Joining New Union Uniting with the International Organization of Masters,

Finance

NRC Program Targets Vessel Operating Costs, Safety

Canada’s NRC creating solutions for the growing Canadian shipbuilding, military vessels, marine commercial transportation and offshore resource industries As

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Global Ship Lease to Acquire Containership

Global Ship Lease, Inc. has  announced  that it has agreed to acquire a 8,063 TEU containership from a leading container liner company for a purchase price of $55 million.

Fuels & Lubes

Shell: Nigeria Oil Union Strike Not Affecting Exports

A strike by Nigeria's oil unions is not having any immediate impact on crude oil exports from Africa's top exporter, despite moving into a third day, spokesmen

Ricardo to Support Kongsberg WFMS Development

Ricardo and Kongsberg have signed a framework agreement that will see Ricardo support the development of the Kongsberg Wind Farm Management System (WFMS) as well

Aiming to Make Less Fuel Go Further: Maersk Drilling

Maersk Drilling says it is engaged in an energy efficiency project for its newbuilds together with Maersk Maritime Technology. The project involves an Energy Management System (MSPS),

News

Jet Edge Celebrates 30 Years in Waterjet Industry

Waterjet systems manufacturer Jet Edge, Inc. celebrated its 30th anniversary Sept. 3 with a special open house celebration. Jet Edge’s anniversary event included

TITAN Salvage Receives NAMEPA Award

The North American Marine Environment Protection Association (NAMEPA) announced earlier this month that Houston-based TITAN Salvage, a subsidiary of Crowley Maritime Corp.

Second Sailing Added to Cleveland-Europe Express

The Port of Cleveland and Amsterdam-based Spliethoff Group announced today their mutual intent to add a second monthly vessel to the Cleveland-Europe Express (CEE),

Vessels

Damen Delivers ASD Tug in Italy

RimorchiatoriRiunitiS.p.A. of Genoa (Italy) has taken delivery of a Damen ASD Tug 2411. The 70-metric-ton bollard pull azimuth stern drive tug will be temporarily deployed by Tug Malta Ltd.

Global Ship Lease to Acquire Containership

Global Ship Lease, Inc. has  announced  that it has agreed to acquire a 8,063 TEU containership from a leading container liner company for a purchase price of $55 million.

World’s Largest Fast Crew Boat Christened at Incat

The 70-meter Fast Crew Boat (FCB) was christened Muslim Magomayev at a ceremony at the Incat shipyard on Monday, September 15. This is the first vessel that

Mergers & Acquisitions

Global Ship Lease to Acquire Containership

Global Ship Lease, Inc. has  announced  that it has agreed to acquire a 8,063 TEU containership from a leading container liner company for a purchase price of $55 million.

EMS Seven Seas Announces New CEO

EMS Seven Seas announces new CEO; enters into agreement to acquire Wave Shipping, a Singapore-based maritime and port agency services company. EMS Seven Seas,

Fugro Takes Delivery of 2nd Coastal Survey Vessel from Damen

Fugro yesterday took delivery of its second of the three Fugro Offshore Coastal Survey Vessels (FOCSV) being built by Damen. The Fugro Pioneer is a compact,

 
 
Maritime Contracts Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2578 sec (4 req/sec)