NAT Weathering a Weak Shipping Market

Press Release
Monday, February 11, 2013

Nordic American Tankers Limited (NAT) publishes its Q4 2012 financial report.

Extracts from the report follow:

In 2012, NAT improved its relative position within the industry despite a weak market. By retaining a strong balance sheet throughout 2012, NAT is able to consider expanding its fleet at a time when tankers are at historically attractive price levels.

Nordic American has one type of vessel only - the Suezmax size tankship which can carry one million barrels of oil. The Suezmax vessel is highly versatile, able to be utilized on most long-haul trade routes. A homogenous fleet streamlines operating and administration costs, which helps keep cash-breakeven point low.
 
As announced last month, NAT is paying a dividend of $0.16 a share for the fourth quarter 2012. Operating cash flow for the fleet was $17.5 million for 2012.  During 4Q 2012 the operating cash flow was -$1.1 million.  The transportation sector, which is important for the tanker industry, shows a very strong development in the Far East.  As an example, new passenger car sales in China increased from 3.9 million units in 2005 to 15.4 million in 2012.  This is positive for the tanker industry.
 
NAT achieved an average daily rate of $10,700 during 4Q2012. Rates achieved in the same period last year were around $12,000 per day. When the market turns, which may happen quickly, the dividend can be expected to increase. Our fleet is in excellent technical and operational condition, and NAT has the financial resources to maintain it that way.

As a matter of policy, the Company has always kept a strong balance sheet with low net debt and a focus on limiting the Company's financial risk.  This policy will continue.  The new non-amortizing credit facility maturing in the autumn of 2017 creates a good base for long term planning.

 

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

People & Company News

Wärtsilä Acquires L-3 MSI

Wärtsilä completes acquisition of L-3 Marine Systems International    Wärtsilä Corporation announced that its acquisition of the Germany based L-3 Marine Systems

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Vale to Ship Coal Along Mozambique Nacala Corridor

Brazilian miner Vale SA  plans to start exporting coal along the Nacala rail and port corridor in Mozambique and Malawi in the third quarter after heavy rains damaged the rail line,

Tanker Trends

New Power Optimization Solution for LNG Carriers

NAPA and DSME launch tailored NAPA-DSME Power Solution for LNG carriers; leading LNG carrier shipyard offers specialized performance monitoring solution   South Korean shipbuilder,

SFL Adjusts Charter Agreement with Frontline

Ship Finance International Limited (SFL) announced that it has entered into a heads of agreement to amend the long-term chartering agreements with Frontline Ltd.

Frontline Beats Q1 Forecasts, Inks Ship Finance Deal

Crude oil tanker firm Frontline posted first-quarter operating profit above expectations on Friday and said it had renegotiated its relationship with chartering

Finance

Mexico Removes Bid Limit on Shallow Water Oil Tenders

Mexico's oil regulator on Friday voted to remove limits on how many blocks companies can bid on in the first 14 shallow water exploration contracts up for grabs later this summer.

Wärtsilä Acquires L-3 MSI

Wärtsilä completes acquisition of L-3 Marine Systems International    Wärtsilä Corporation announced that its acquisition of the Germany based L-3 Marine Systems

Neptune Orient Lines Sells Logistics Business

Neptune Orient Lines sells APL Logistics to Kintetsu World Express   Neptune Orient Lines Limited (NOL) announced that it has completed the sale of its logistics business,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.2598 sec (4 req/sec)