Nordic American Tankers Improve Performance in Q3 2013

MarineLink.com
Monday, November 11, 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.
 

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

People & Company News

LNG Vessel with Wartsila Integrated Solutions Delivered to Evergas

The first in a series of 27,500 cbm 'Dragon' class vessels ordered by Evergas, a world renowned owner and operator of seaborne petrochemical and liquid gas transport vessels,

Executive Changes at Transocean

Transocean Ltd. today announced that, as mutually agreed with the company, Esa Ikaheimonen is stepping down as Executive Vice President and Chief Financial Officer effective immediately.

BMT, Endeavour Energy Win Africa’s LNG Import Terminal Contract

BMT Asia Pacific (BMT), a subsidiary of BMT Group Ltd, has been appointed Owners Engineer and lead design consultant by Endeavour Energy for the development

Tanker Trends

LNG Vessel with Wartsila Integrated Solutions Delivered to Evergas

The first in a series of 27,500 cbm 'Dragon' class vessels ordered by Evergas, a world renowned owner and operator of seaborne petrochemical and liquid gas transport vessels,

Bahri Orders VLCC Newbuilds

Bahri ordered five newbuild very large crude carriers from Hyundai Samho Heavy Industries   The National Shipping Company of Saudi Arabia (Bahri) today signed

Tankers Switch to Digital Navigation

In July 2015 international regulation requires all tankers to be compliant with IMO rules for the use of ECDIS and ENCs. As many shipping companies start planning

Finance

WTO Launches Dedicated Website for new TFA Facility

The TFAF was created at the request of developing country and least-developed country (LDC) members to help ensure that they receive the assistance needed to

Aegean Marine Profit Beats Estimates

Greece-based Aegean Marine Petroleum Network Inc. (ANW) reported first-quarter earnings of $12.2 million or $0.25 per share compared with $5.1 million or $0.11 per share last year.

Shreyas Shipping Turns Around

Shreyas Shipping and Logistics swung to a net profit of Rs. 61.75 crore (about $9.6 million) in the fiscal year ended March 31, a big turnaround from its loss of Rs.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Repair Ship Simulators
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: 0.1531 sec (7 req/sec)