NAT in Q1 2014 Black: First Time in Four Years

Posted by George Backwell
Monday, May 12, 2014
NAT Tankship: Image courtesy of NAT

Nordic American Tankers (NAT) report a cash dividend, strongly improved operating cash-flow and a positive net income in the first quarter of 2014.

The Company informs that thanks to a strong winter market, Q1 2014 has produced the best results it has seen in several years. The timecharter results of NAT were significantly better in 1Q2014 than in 4Q2013.

The short term rates in tanker markets are very volatile. At the time of this [financial] report the tanker market has weakened. Nonetheless, there are indications that after the weakness of the past few years a recovery is coming closer. During 1Q2014 we had positive cashflow from operations of $27.1m, compared with $1.9m in 4Q2013 and -$4.9m in 1Q2013.

As communicated earlier, in November 2013, NAT established Nordic American Offshore (NAO) - a Platform Supply Vessel (PSV) company. At the time of this report we expect the public listing of NAO on the New York Stock Exchange to commence very soon.
 
On April 2, 2014 NAT declared a cash dividend of $0.23 per share payable to shareholders of record as of May 15, 2014. The dividend is expected to be paid on or about May 27, 2014.
 
Since NAT commenced operations in the fall of 1997, the Company has paid a dividend 67 times, with total dividend payments over the period amounting to $44.90 per share, including the dividend to be paid in May 2014. In addition, a dividend in kind of $0.13 per share will be distributed to NAT shareholders in the form of NAO shares after the listing of NAO at NYSE.
 
During November, 2013, NAT explain that the Suezmax market strengthened, and in December the market achieved its highest level since 2010. This lasted into January before the market began to subside. NAT's strategy meant a number of cargoes were concluded at high levels. The rate increase is an indication of the improved fundamentals of the tanker business.

The Company has in place a non-amortizing credit facility of $430m, of which $250m has been drawn. Cash on hand is about $80m. Net working capital, undrawn amounts of the credit facility and cash on hand amount to $385m. In addition, the Company has cash on hand of $113.6m from the follow-on offering that closed April 11, 2014.

NAT's first quarter 2014 financial report is available at: http://hugin.info/201/R/1784418/611430.pdf
 

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

People & Company News

Pollet to Lead R&D at Coldharbour Marine

Coldharbour Marine Ltd. has appointed Professor Bruno Pollet to head its R&D department.   Bruno Pollet moves to Linby, Nottinghamshire from the University of the Western Cape,

ClassNK Opens R&D Center in Singapore

Classification society ClassNK promoted the activities of its new Global Research and Innovation Center (GRIC) at a press conference held today in Singapore.   Joined

ABS Appoints New Chief Technology Officer

ABS named Howard Fireman as Senior Vice President and Chief Technology Officer (CTO) effective April 20 in a move that strengthens alignment and generates further

Tanker Trends

New Tanker Designs Feature Reduced Ballast Capacity

‘Clear Advantage’ tanker design series is reported to reduce ballast requirements by 40%. Ready to be built, the designs combine operational and environmental performance

Stena Bulk Charters Out LNG Carrier

Stena Bulk has signed an agreement covering the charter of the LNG carrier Stena Blue Sky for the North West Shelf Project in Australia. The duration of the

Liner Service Reliability Jumps to 64%

According to Drewry Supply Chain Advisors, liner shipping service reliability on the three East-West trades showed an aggregate on-time performance of 64% in March - a five-month high.

Finance

Royal Caribbean Cuts Profit Forecast

Royal Caribbean Cruises Ltd cut its adjusted profit forecast for the year, citing a jump in fuel prices since its January forecast and a strong dollar.   Shares

Baltic Index Up Slightly on Higher Rates for Large Vessels

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose slightly on Monday due to firmer rates for the large vessel segments.

ExxonMobil President Seeks Swift Action on US LNG Exports

The United States is at risk of losing economic opportunity and the ability to solidify its role as a global leader in energy production unless the government moves

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair 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: 0.2434 sec (4 req/sec)