NAT Posts 1Q 2013 Results
Monday, May 13, 2013

During the first quarter of 2013, NAT acquired another Suezmax tanker, built to top specifications and launched this year. We expect the ship to be delivered to us by June 15, bringing our total fleet to 21 ships. In April, NAT completed an equity offering, with net proceeds of $102.2 million. The same month, the Board declared a dividend of $0.16 per share for 1Q 2013, identical to the dividend for 4Q 2012.

The tanker market remains challenging, though there are underlying signs of improvement. The orderbook for Suezmax tankers is shrinking and should have a positive impact on the tanker market rates in the future. The Imarex index, which measures the average daily rate for leasing a ship, was $12,466 for 1Q2013, approximately at the same level of what our operating fleet attained. In 4Q 2012, the index was $11,533. By contrast, Imarex stood at $22,804 during the 1Q 2012. When the market turns, which can take place quickly, the dividend can be expected to increase. NAT is very well placed to reap the economic benefits of a market upswing. Our fleet is in excellent technical and operational condition, and NAT has the financial resources to maintain it that way. Clients know that we do not compromise on the quality of our operations.

The Company will pay the dividend on or about May 14, 2013 to shareholders of record as of April 30, 2013. Starting in the fall of 1997, when NAT began its operations, the Company has paid a quarterly dividend for 63 consecutive quarters. Including the dividend to be paid in May, the total dividend payments over this period amount to $44.26 per share.

Key points:
Earnings per share (EPS) from ongoing operations in 1Q 2013 was -$0.59 of which -$0.16 were non-recurring. EPS in 4Q2012 were -$0.61 of which -$0.22 were non-recurring. EPS in 1Q2012 was -$0.18 of which -$0.03 were non-recurring.

NAT took full control of the Orion Tanker Pool as of January 1, 2013. The cost of increasing our ownership in this management company from 50% to 100% was $270,000.

We continue to focus on cost efficiency -- both in administration and onboard our vessels. Later in this report we have outlined some of the measures we are implementing to reduce energy use on the ships.

Spot rates achieved for 1Q 2013 were slightly above the level of 4Q2012. Continued recovery in the world economy is required to increase vessel demand and rates.

During the quarter the Company completed the acquisition of the management company Scandic American Shipping Ltd. There will be no change in the management of the Company following this takeover.

"Financial Vetting", or focus on the financial strength of shipowners, continues to be an important consideration. With NAT this is not a concern for our clients.

The Company does not engage in any type of derivatives.

A stock issue was launched April 1, and closed April 5. The total number of shares issued was 11,212,500, strengthening the financial basis of the Company by $102,258,000 which will be reflected in the 2Q 2013 accounts.

Investors who seek exposure to the tanker market, should consider Nordic American.

The complete first quarter 2013 report can be viewed here:

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

People & Company News

Höegh Names SSL as its Agent in Finland

Höegh Autoliners appointed Scandinavian Shipping & Logistics, which has already worked with the Norwegian ocean carrier in Sweden and Norway for several years, as its agent in Finland, effective Dec.

Volvo Ocean Race Partners with Yacht Racing Forum

The Volvo Ocean Race has agreed a three-year partnership with the Yacht Racing Forum.   "We are delighted to welcome the Volvo Ocean Race as a long-term partner,

Danelec Marine Expands in Brazil

Press release - Danelec Marine has announced that it is expanding its presence in Brazil by naming Telnav Telecomuniçacões Navais a Certified Service Center. With

Tanker Trends

Teekay LNG Partners Declare Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended September 30, 2015. The

TMS Cardiff Gas Orders First LPG Carriers

TMS Cardiff Gas Ltd. has signed a contract with Hyundai Heavy Industries of Korea for the construction of two 78,700 cbm LPG carriers with the option to build another two.

Odfjell's Tanker Overhaul Seeks to Slash Emissions by 20%

Norwegian tanker shipper Odfjell announced it is upgrading the propulsion systems aboard 19 of its chemical tanker vessels in a move that aims to reduce its fuel


Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,

Smith Taken on Rolls-Royce Holdings Board

Rolls-Royce Holdings plc today announces the appointment of Sir Kevin Smith CBE as a Non-Executive Director.  Sir Kevin will join the Board with effect from

Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics 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: 0.1919 sec (5 req/sec)