NAT Inks Time Charters for Two Suezmax Newbuilds

Tanker shipping company Nordic American Tankers (NAT) announced Wednesday it has lined up six-year time charters for a pair of Suezmax newbuilds scheduled to be delivered from South Korea later this year.

The contracts for the 156,800 dwt tankers are with Oman-based ASYAD Shipping Company, and they will commence upon delivery from the shipyard in May and June.

Herbjorn Hansson, NAT board chairman, president, CEO, said, “Our business is expanding in the Middle East, which is an important area for our operations. We regard this cooperation with Oman interests as a substantial step forward to cementing and building out our position in the area. This may only be the beginning.”

Dr. Ibrahim Al Nadhairi, CEO of ASYAD Shipping & Drydock Services, said, "Further projects may also be developed between our respective companies. From ASYAD Shipping perspective this will be a further expansion of the crude transportation verticals. This new partnership will leverage Asyad shipping readiness to evolve its leading position in shipping and logistics services. Morever, it will support its operation capabilities to secure more business opportunities for Oman and make it a global logistics hub."

The time charters will generate an aggregate revenue of more than $100 million, New York-listed NAT said. "The cumulative cash flow, after operating expenses, from these contracts will equal in excess of 60% of the original price of the vessels," the company added, noting its vessels typically operate for more than 25 years.

The NAT fleet now consists of 23 vessels following the recent sales of two vessels.