NAT books 2 Suezmaxes at SHI

Tanker owner Nordic American Tankers (NAT)  has entered into two 2 Suezmax newbuilding contracts with Samsung Heavy Industries in South Korea.

The scheduled deliveries of the ships are in the first half of 2022.

“The combination of specifications, quality of yard, price, payment terms and deliveries make this an attractive investment for NAT and is consistent with our strategy to expand and renew our fleet,” the company said.

“Through the years we have enjoyed an excellent relationship with the shipbuilding sector in South Korea, and we are happy to conclude further Suezmax newbuilding contracts with Samsung Heavy Industries.”

The latest contract increases the company’s fleet of Suezmax tankers to 25 units.

NAT will consider various financing alternatives prior to deliveries. 

“The payment terms of the newbuildings are 10/10/10/10 with 60% of the building price on deliveries. The two first instalments of the vessels have already been funded,” the company said.

According to NAT’s information, a total of 13 additions to the world Suezmax fleet (excl. shuttle, product & Jones Act, are expected to be delivered in the remainder of 2020.

Furthermore, a total of 22 conventional Suezmax tankers are scheduled for delivery in 2021 and 12 in 2022.

For the 2nd quarter of 2020, NAT had a net income of $49.1 million, a further improvement from the 1 st quarter that saw a net income of $39.5 million.