Nordic American Tankers Ltd (NYSE: NAT) – Extraordinarily Strong Tanker Market
Hamilton, Bermuda March 17, 2020
We receive questions about the state of the tanker market, which is the strongest we have seen in decades.
Increased exports from Saudi Arabia lead to extra demand for tonnage. As an example, it has been indicated that one million barrels a day extra from Saudi Arabia to the Far East create demand for about 45 suezmaxes. It is simple: Increased demand leads to more transportation work for our tankers. The last days we have entered into solid contracts for our suezmax tankers in the region of $65,000 per day to more than $100,000 per day. Our operating costs are about $8,000 per day per vessel. NAT has 23 suezmaxes which can load one mill barrels each.
We paid 7 cents ($0.07) in dividend in the fourth quarter of 2019. We are hopeful to double that for the first quarter of 2020. NAT is now entering into contracts that go into the second quarter of 2020.
Please note that the comments made in this message are not predictions. Our description is a glimpse of the tanker market as we see it now.
All the commotion associated with the virus is impacting many companies and people. The impact on NAT is limited.
As matters stand now, we are in a very strong phase of the tanker market. We believe that this could last for quite a long time including next year (2021). Our description of the future is of course not a promise, but it is an indication how matters stand at this time as we see them.
NAT is on a very strong footing. We expect this to benefit our shareholders.
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.
Gary J. Wolfe
|Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Chairman & CEO