Still impacted by weak tanker market conditions, Bermuda-based tanker owner Nordic American Tankers (NAT) suffered a net loss of USD 3.4 million in the first quarter of this year, down from a profit of USD 29.3 million posted in the same period of 2016.
The company’s net operating earnings for the quarter were USD 5.1 million, considerably lower from USD 33.6 million recorded in the first quarter last year.
Although the company saw a loss, NAT said it “is in a solid financial position with a strong cashflow.”
The average daily time charter equivalents (TCE) earned for the first quarter were USD 22,700 per day per vessel as against the previous quarter of USD 21,600 per day per vessel. Net voyage revenue stood at USD 55.2 million in 1Q, compared to USD 76.7 million seen in the period ended March 31, 2016.
In late February, NAT took delivery Nordic Space, a newbuilding Suezmax.
NAT is expected to take delivery of three Suezmax newbuildings ordered at Samsung Heavy Industries shipyard in South Korea, in the second half of 2018. As NAT already paid 30% of the total purchase, it will finance the remaining 70%, which is due upon delivery of the ships, from cash on hand and increased debt.
Currently, NAT has 30 Suezmaxes in operation.