NAT: 2Q 2015 Encouraging for Tanker Market

In the first quarter of 2015 Nordic American Tankers (NAT) benefited from both a strong Suezmax tanker market and a significant drop in the oil price that had a positive effect on the tanker industry.

Cashflow from operations was USD 50 million, compared with USD 24.5 million in 4Q2014. For all of 2014, cashflow from operations was USD 77.7m compared with -USD 11.1m in 2013.

The strong level in 1Q2015 was reflected in an average TCE rate of about USD 37,000 per vessel per day, as against USD 24,000 per day per vessel achieved in 4Q2014 and USD 26,300 in 1Q2014.

Earnings per share in 1Q2015 was USD 0.34, compared with -USD 0.02 in 4Q2014, and USD 0.05 for 1Q2014.

“The size of its fleet allows NAT to reap immediate and sizeable profits when spot market rates rise. Even with its inherent volatility, the tanker market remains strong. So far, the 2Q2015 tanker market is encouraging,” NAT said.

On April 14, 2015, NAT declared a cash dividend of USD 0.38 per share payable to shareholders of record as of May 7, 2015. The dividend is expected to be paid on or about May 21, 2015.

The balance sheet was strengthened in 1Q2015 as NAT retained about USD 17m of cashflow from operations during the quarter.

“In an opportunistic way NAT is now assessing investments that further build up the position of the company. After an acquisition of vessels or other forms of expansion, our objective is for the company to pay a higher dividend per share and produce higher earnings per share than had such an acquisition not taken place,” the company said.

According to NAT, despite decreased seaborne imports of crude oil into the US, going forward, European crude imports have shown a rising trend along with economies in the Far East that have resumed their growth.