Hamilton, Bermuda, March 2, 2020
Dear Shareholders,
We already referred to the Corona Virus in a press release of Friday January 31, 2020, stating that “we do not see any implications for NAT” – from the Virus.
In the NAT Q4 2019 report of Tuesday February 18, 2020 we drew the same conclusion. We have learnt over the years that we do not necessarily see negative implications for NAT in times when there is political uncertainty.
Political uncertainty may create positive implications for NAT. The last few years, irrespective of the Corona Virus, there are exports of crude oil from the USA. This development creates work for many suezmaxes of our type.
It is part of our business to handle risk. We have traded ships in Hormuz for decades – Hormuz in the Persian Gulf is an area between the adversaries Saudi Arabia and Iran of about 30 nautical miles.
Although the indirect effects from the Virus may have short term negative implications for the oil market, it does not necessarily impact the market for NAT.
Reduced world oil trade in itself is negative for NAT. On the plus side there are several positive factors. Observers must not lose their heads – tendencies we see now.
Situations like these create irrational behavior by many parties, among investors, financial institutions and others. As a tanker company, we are cautious and do not wish to stimulate such irrational behavior.
As an example, we now see increased demand for storage space. Several of our ships are employed in this way. In tough times, you always have cans of reserve food in your basement. Now we have “reserve” oil.
The NAT tanker business has a solid future – short term bumps in the road, caused by Virus or other contingencies, do not distort our expectations in this regard. The East/Far East remain the area of growth in the years to come – the economic machine of international business, stimulating the NAT tanker business.
A main objective for NAT is to remain a dividend company.
Sincerely,
Herbjørn Hansson
Chairman & CEO
Nordic American Tankers Ltd.
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.
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Contacts: |
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Gary J. Wolfe
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| Bjørn Giæver, CFO Nordic American Tankers Limited Tel: +1 888 755 8391 or +47 91 35 00 91 |
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Herbjørn Hansson, Chairman & CEO |
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