NAT Chairman Reassures Shareholders, Mulls Expansion

MarineLink.com
Thursday, August 29, 2013

In an open letter to shareholders, Herbjorn Hansson
, Chairman & CEO
 of Nordic American Tankers Limited sets out that his company is in a strong position. Selected extracts from the letter follow:

"The company is in a solid financial condition. This is demonstrated by the fact that as of June 30, 2013 our net debt is about $4.4 million per ship. In comparison, at the end of June 2004, at the time when the company turned into and (sic) operating unit, the net debt was about $8 million per ship. Cash on hand, net working capital and undrawn portion of our credit facility is $330 million, representing our financial liquidity reserves June 30, 2013. This allows us to plan for further growth.

In July and August the situation has improved, signaling that results for the third quarter should be better than those for the second quarter. Since July 1st, the IMAREX rates have been above the second quarter level. Towards the end of August weakness is again seen. The actual results for a fleet may differ from the quotations of IMAREX.  In an improving market there is a time-lag of two to three weeks before we can benefit from the higher rates.

NAT is now assessing various investments that would allow us to expand profitably. As always, our primary objective is to maximize total return to our shareholders. Over time we have produced a competitive total return for our shareholders and we believe that we are in an excellent position to achieve such results in the future.

My family and I have continued to increase our ownership of shares in NAT this year, evidencing our bedrock confidence in the future of Nordic American. In the offering of April we bought $1.5 million worth of shares for cash and have made additional cash purchases since then. We now have about 5.5% of the shares in NAT and are proud to be the company's largest shareholder."

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Senate Confirms Three to Serve on Federal Maritime Commission

The U.S. Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners: Rebecca F. Dye, Michael A. Khouri and Daniel B. Maffei.

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Tanker Trends

Tanker Allision on the Piscataqua River

The U.S. Coast Guard says it is continuing to monitor the condition of the chemical tanker Chem Venus, after it allided with three unoccupied, moored sailboats

NAT Takes Delivery of Suezmax, Earnings Capacity Up

Nordic American Tankers Limited ("NAT" or "the Company") announced that it today took delivery of a Suezmax vessel, the Nordic Sirius, built at a shipyard in Japan.

BIMCO - Oil Product Tankers Earnings Decline as stockbuilding Slows Down

BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pipelines Pod Propulsion Port Authority Ship Simulators Sonar 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: 0.1023 sec (10 req/sec)