Nordic American Tankers Improve Performance in Q3 2013

Nordic American Tankers Limited (NAT) report significant improvement in results in the third quarter 2013 over 2Q2013. TCE earnings were about $16,500 per day versus about $8,000 per day in the preceding quarter.

Key points in the report

• Earnings per share in 3Q2013 was -$0.29, compared with -$0.48 in 2Q2013 and -$0.44 in 3Q2012.
• NAT's reserves including the undrawn part of the credit facility and working capital stood at $303m at the end of third quarter.
• he previously announced ExxonMobil agreement continues to yield benefits, reducing waiting times for our vessels even though the market is oversupplied.
• We continue to focus on cost efficiency - both in administration and onboard our vessels.
• 15 vessels were vetted (inspected by clients) during 3Q2013. There were 3.4 observations on average per ship, an excellent result reflecting the quality of our fleet.
• Spot rates achieved on average for 3Q2013 were $16,500 per day for our trading fleet, stronger than the $8,000 per day achieved in 2Q2013."Financial Vetting" and focus on the financial strength of shipowners are increasingly relevant in the tanker industry. NAT is in good financial health which is important to our clients.
• Scrapping has been slower than in 2012. However a number of vessels are approaching their 15 year special survey dates. For many owners it may not be feasible to pass inspection due to their weak financial position.
• The Company has decided to establish Nordic American Offshore Ltd. (NAO) and to invest at least $50 million in NAO. The plan is to seek a listing of NAO on the New York Stock Exchange.
• The Company does not engage in any type of derivatives.
• Economic development in Asia remains stable while in Europe the uncertainty continues. Developments in the US economy are positive. Increased domestic crude oil production means crude oil previously bound for the US is displaced to markets with longer travel distances boosting vessel demand.

Financial Information
The Board has declared a dividend of $0.16 per share to shareholders of record as of November 29, 2013.  The dividend will be paid on or about December 11, 2013. The number of shares outstanding at the time of this report is 66,038,251, of which 23,000 are shares in treasury.

Earnings per share in 3Q2013 was -$0.29, compared with -$0.48 in 2Q2013 and -$0.44 in 3Q2012.
 
The Company's operating cash flow was $2.5m for 3Q2013, compared with -$10.6m for 2Q2013 and -$3.2m in 3Q2012.