NAT Buys Suezmax Duo

Nordic American Tankers Limited (NAT) said that it has agreed to acquire two Far East built Suezmax tankers at an average age of five years for a total of USD 122 million.

The vessels are expected to be delivered in September and October 2015, respectively.

The company said that it does not plan to issue equity to finance the two vessels.

“The acquisition represents a natural step in the further development of Nordic American. By adding two more ships, we increase the dividend capacity and earnings potential. We believe that our strong balance sheet, the dividend policy, well defined and transparent operating model provide NAT with a solid competitive position,” NAT said in a statement.

The move comes following the announcement from Herbjørn Hansson, NAT’s Chairman & CEO, that NAT was looking into fleet expansion opportunities that might involve “a ship or two.”

NAT already has two newbuildings on order scheduled for delivery in 2016 and 2017 respectively.

For the second quarter of 2015, NAT is expected to achieve rates generally at the same level as in the first quarter of 2015, which should result in a strong dividend for the 2nd Q of 2015.

Image courtesy: DN GL

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