NAT Posts 1Q 2013 Results

MarineLink.com
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: http://hugin.info/201/R/1701030/561521.pdf

www.nat.bm

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

People & Company News

BIMCO Welcomes EU Decision on Migrants

BIMCO has stated today that it appreciates the new efforts by EU leaders to reduce increasing reliance on merchant shipping to rescue the growing numbers of

Long Beach, Los Angeles ports host forum to gather input

More than 100 cargo owners, trucking firm leaders, longshore labor, marine terminals and other goods movement industry representatives turned out Wednesday for

Arctic Nations to Fight Climate Change Despite Russia Tensions

The eight Arctic Council nations pledged on Friday to do more to combat climate change that is shrinking the vast frigid region, with countries trying to put

Tanker Trends

MISC Says AET Tankers Unit Not for Sale

MISC Berhad issued a statement today addressing recent market speculation that the company is set to sell its wholly owned petroleum tanker subsidiary AET Tankers.

Strong Tanker Market Extends Peak Season High Earnings

Tanker earnings for crude oil tankers have climbed to new strong levels in the first quarter of 2015, with averages not seen since 2008, the Baltic and International Maritime Council (BIMCO) reported.

Asia Tankers-VLCC Rates Soar

Middle East VLCC rates hit $69,500 a day; daily VLCC rates average $51,000, highest since 2008 (Clarkson). Rates for very large crude carriers (VLCCs) on a key

Finance

Long Beach, Los Angeles ports host forum to gather input

More than 100 cargo owners, trucking firm leaders, longshore labor, marine terminals and other goods movement industry representatives turned out Wednesday for

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

Oil Price Shock Soon to be Positive Overall for Canada

Canada's economy will start to show more positive effects from the drop in oil prices than negatives from the second quarter onwards, Bank of Canada Governor Stephen Poloz said on Friday.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair 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: 0.2220 sec (5 req/sec)