Wednesday, February 9, 2022
Dear Shareholders and Investors,
We are pleased to inform you that we have concluded two six-year Time Charters for our two Suezmax newbuildings for delivery in May and June this year.
The contracts have been entered into with ASYAD Shipping Company and will commence upon delivery of the two NAT suezmaxes from the shipyard in South Korea. With the recent sales of two vessels, the NAT fleet now count 23 vessels.
The time charter rates concluded will secure a stable revenue stream over the six years, and generate an aggregate revenue of more than USD 100 million during these charters. The cumulative cash flow, after operating expenses, from these contracts will equal in excess of 60 percent of the original price of the vessels.
Thanks to the quality of our fleet and our maintenance schedules, the NAT suezmaxes are able to operate efficiently for more than 25 years.
Dr. Ibrahim Al Nadhairi CEO of ASYAD Shipping & Drydock Services said:
“We are pleased to have entered into these contracts with such a well reputed company as NAT, listed on the New York Stock exchange. 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”.
Mr Herbjorn Hansson of Nordic American Tankers commented:
“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.”
The origin of the NYSE listed Nordic American Tankers Ltd started out with three vessels on seven year charters back in 1997 and formed the back-bone of our growth and expansion.
The contracts we now have concluded, are in line with our conservative policy of relying on both spot and long-term charter markets to navigate in the tanker business.
Upon delivery of the two new-buildings, NAT will have a number of its vessels on long term charters. Contracts of a long term nature, is an insurance policy and is strengthening NAT.
The other NAT ships trading in the spot market, will reap the benefits on that front as the market improves.
About ASYAD Shipping Company
Established in 2003, ASYAD Shipping Company S.A.O.C. grew out of the Omani government’s vision to develop a national fleet catering to the maritime transportation requirements of the country’s rapidly growing hydrocarbon, petrochemical, mining, and metallurgical industries. Initially focused on the transportation of domestically produced liquefied natural gas (LNG) cargoes to international markets, ASYAD Shipping Company’s fleet has evolved to include Very Large Crude Carriers (VLCCs), Product Tankers, Chemical Tankers, LPG Carriers Very Large Ore Carriers (VLOCs), Bulk Carriers, multi-purpose vessels and, lately, a containership as well. Today it owns and operates a diversified fleet of around 70 ships.
ASYAD Shipping is owned by the government of the Sultanate of Oman through Asyad Group S.A.O.C.
Founder, Chairman & CEO
Nordic American Tankers Limited 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.
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Founder, Chairman & CEO
Nordic American Tankers Ltd
Tel: +1 866 805 9504