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

People & Company News

MacGregor's Hatlapa Brand is 95 Today

November 2014 marks the 95th anniversary of MacGregor's Hatlapa brand. Since its foundation in 1919 by German engineer Max Hatlapa, the formerly independent Uetersen-based

BSEE Responds to Explosion in Gulf of Mexico

The Bureau of Safety and Environmental Enforcement (BSEE) is responding to an explosion at West Delta 105 in the Gulf of Mexico, approximately 12 miles off the coast of New Orleans.

OW Bunker Bankruptcy has ‘Limited Impact’ on Monjasa

Though OW Bunker’s collapse has varyingly affected many companies around the globe, Danish bunker fuel provider Monjasa A/S said in a statement that the news holds

Tanker Trends

Shipowner Exmar Shelves IPO ... for Now

EXMAR (Euronext: EXM) said that due to unfavorable current capital market conditions, it is delaying the launch of the contemplated initial public offering (IPO)

NAT CEO: Low Oil Prices Benefit the Tanker Market

Nordic American Tankers Limited Chairman & CEO Herbjørn Hansson addressed the impacts of low oil prices on the tanker business in a letter to shareholders, citing

CEO Lone: China, India to Dominate Oil Trade

China and India will account for about 35% of global oil trade in the next 10 to 15 years, according to predictions by  Harald Lone, Chairman and CEO of Newport Shipping Group.

Finance

Rosneft Completes Geological Survey

Rosneft reports on 100% completion of the geological survey program on Company's offshore license areas for 2014. In the current year geological survey covered

DGS Marine Advises Fixed Premium P&I Cover

  DGS Marine, a leading global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I facility, has highlighted

Maersk to Introduce Low Sulphur Surcharge

To offset the additional cost incurred by switching to cleaner fuels in Emission Control Areas, as required by the new regulation, Maersk Line will introduce a new Low Sulphur Surcharge (LSS).

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction 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: 0.1434 sec (7 req/sec)