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Nordic American Tankers Ltd. (NYSE: NAT) – A tanker market update in a changing world

 

June 18, 2020

Dear Shareholders and Investors,

We regularly comment on geopolitical events with relevance to NAT. Such events include trade negotiations between China and the US, OPEC-actions, Covid-19 pandemic, Middle East tensions and sanctions impacting jurisdictions where the NAT vessels are operating.

The above elements have taken place during the last few months. Changes of this nature are elements we often meet. For NAT it is important to note that the underlying balance between supply and demand for ships is good. The limited supply of new tankers has been the foundation and a driving force that has made it possible for tanker owners to benefit from these events. We at NAT see a positive development for the remainder of 2020 and for 2021. 

Our confidence is supported by the dividend for the first quarter of 2020 ($0.14) and for the second quarter of 2020 ($0.20). The dividend for the fourth quarter in 2019 was ($0.07). Our dividend has always been a reflection of our cashflow. At a time when other companies are cutting back their dividend distribution, it is important for us to emphasize that dividend remains a priority for NAT.

Please note that the Venezuela situation has resurfaced. NAT is always complying with sanctions imposed by the US.  

Meanwhile, China and other Asian economies seem to be recovering. Combined with international stimulus packages and a low oil price, we see the recovery of the world economy sooner rather than later.

The tanker market turned in a positive direction long time ago.

Best regards,

Herbjørn Hansson
Founder, Chairman & CEO

Nordic American Tankers Ltd.                                                           www.nat.bm  

 

 

 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 worldwide 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.

NAT is a Bermuda based company.


Contacts:
       

Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223

Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91       

Herbjørn Hansson, Chairman & CEO
Nordic American Tankers Limited
Tel: +1 866 805 9504 or +47 90 14 62 91