Wednesday, November 30, 2022
Dear Shareholders and Investors,
Please see HIGHLIGHTS and the enclosed 3Q 2022 report
below.
Highlights:
1) The average Time Charter Equivalent (TCE) for our
fleet during the third quarter of 2022 came in at $27,850 per day
per ship, up from the second quarter of $20,080 per day per vessel.
Rates have risen dramatically during the fourth quarter and so far,
74% of our spot voyage days have been booked at an average TCE of
$54,100 per day per ship. Our operating costs are $8,000 per day
per ship.
2) The net profit for 3Q 2022 was $10.0 million or
an Earnings per share (EPS) of $0.05. The second quarter saw a net
loss of -$4 million and an EPS of -$0.02. Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) for 3Q 2022
doubled from the previous quarter and came in with a positive $29.6
million, compared to an EBITDA of $14.2 million in 2Q
2022.
3) As previously announced, the dividend for the third
quarter of 2022 will be 5 cents ($0.05) per share and will be
payable on December 20, 2022 to shareholders on record as of
December 6, 2022. Based on our fourth quarter performance so far,
we anticipate the dividend for the fourth quarter could double,
compared to the third quarter payout. This dividend is expected to
be announced in February 2023 and paid in March 2023.
4) Political uncertainty has always stimulated demand
for our ships. Given the geopolitical realities we face now, oil
will have to be transported over longer distances than in the past,
increasing ton-mile and demand for our tankers.
5) The orderbook for new suezmax tankers scheduled to
join the global fleet currently stands at 11 ships (2% of the world
suezmax fleet) through 2024. A low orderbook is a leading indicator
of improved utilization and earnings for our tankers.
6) The combination of ton-mile expansion and low supply
growth is bullish news for our vessels for 2023 and beyond. NAT has
19 one-million barrel suezmax tankers on the water, making money
every day, Sundays and Holidays included.
7) The NAT fleet of versatile suezmax tankers offers
flexibility in loading and discharging around the world that helps
our clients manage their requirements efficiently under quickly
changing circumstances.
8) Through careful voyage planning and adjustment of
speed of our vessels, the NAT fleet is reducing
emissions.
9) NAT has one of the lowest debt levels among publicly
listed tanker companies. Our net debt stood at $224 million equal
to $11.2 million per ship at September 30, 2022. In the solid
tanker market we now see, our debt is reduced by the day. The
objective of NAT is to become more or less debt free, which was the
case in the past.
10) Financial information for the third quarter of 2022
and for other periods is included in the report attached
below.
For contacts, please see at the end of this
communication.
Sincerely,
Herbjorn HanssonFounder, Chairman & CEO
Nordic American Tankers Ltd.
www.nat.bm
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.
Contacts:
Bjørn Giæver, CFO
Nordic American
Tankers Ltd
Tel: +1 888 755
8391
Alexander Kihle, Finance ManagerNordic American Tankers LtdTel:
+47 91 724 171
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