Nordic American Tankers Limited (NYSE:NAT) - Letter to Shareholders from the Chairman & CEO. Improved Market Conditions for our Suezmax tankers.
Press release from Nordic American Tankers
Hamilton, Bermuda, January 10, 2014
All the best for the new year which has started out very well for NAT. In my letter to you one month ago, December 10 2013, I pointed at the improved conditions in the Suezmax spot tanker market. The strong development has continued into 2014. We do not predict spot tanker rates. I would note, though, that we are very pleased to see this strongly improved rate picture for Suezmax spot tankers.
We often have requests for information about spot Suezmax rates. Below are the rates as quoted by Fearnleys Shipbrokers January 9 - yesterday. Rates achieved by NAT per day may differ from the quotes of shipbrokers. Rates are volatile, and may move both up or down from the levels listed below. Rates are given in dollars per day for vessels in the spot market. All the NAT vessels (20 Suezmaxes) are in top technical condition, trading in the spot voyage market. NAT is a supplier of ships above all to the large international oil companies.
Market rate estimates are often in an "ideal" world, with minimum waiting time. The rates do not with any precision indicate the rates achieved in the market by a shipping company.
Market estimates for five different routes January 9, 2014:
The cash break-even rate for the NAT vessels, including administrative and financing items is about $12,000 per day per ship. A strong tanker market does impact the dividend payments to shareholders in a positive way.
I wish to be cautious and conservative. We do see, however, recent developments as positive signs, indicating that we are coming closer to a recovery.
All the best!
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.
Rolf Amundsen, Advisor, Norway
Turid M. Sørensen, EVP & CFO, Norway
Gary J. Wolfe