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 June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

U.S. Marshalls Ordered to Seize Kurdish Oil Cargo off Texas

Acting on a request from the central government in Iraq, a U.S. judge has signed an order telling the U.S. Marshals Service to seize a cargo of oil from Iraqi Kurdistan

Diana Containerships Q2 & 1H 2014 Financial Results

Greece-based Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has reported net income of $0.6 million for the second quarter of 2014,

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

Tanker Trends

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

Scorpio Tankers Report Q2, 1H 2014 Profit Slip

Scorpio Tankers Inc. has reported its results for the three and six months ended June 30, 2014. Highlights excerpted here as follows: Results for the three months ended June 30,

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

Finance

Diana Containerships Q2 & 1H 2014 Financial Results

Greece-based Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has reported net income of $0.6 million for the second quarter of 2014,

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1823 sec (5 req/sec)