Monday, February 27, 2023
Dear Shareholders and Investors,
The 4Q 2022 Net result is more than $50 million better
than the same quarter 2021. The direction of NAT is unquestionably
upwards.
Highlights:
1) The average Time Charter Equivalent (TCE) for our
spot vessels (15) during the fourth quarter of 2022 came in at
$57,340 per day per ship. Including vessels on term contracts (4),
the total average NAT TCE was $49,035 per day per ship. This was
76% up from the third quarter of 2022. Our operating costs are
about $8,000 per day per vessel.
2) The net profit for 4Q 2022 more than
tripled from 3Q 2022 and landed at $36 million or an Earnings
per share (EPS) of $0.17. the previous quarter saw a net profit of
$10.0 million and an EPS of $0.05. Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) for 4Q 2022
came in with a positive $51.1 million, compared to an adjusted
EBITDA of $28.4 million in 3Q 2022. The bulk of our 2022 periodic
drydockings took place in the fourth quarter and as such affected
our revenues negatively.
3) Strong rates have continued into first quarter this
year. So far, 72% of our spot voyage days have been booked at an
average TCE of $60,630 per day per ship. With the 1Q 2023 bookings,
we expect the first quarter 2023 net results to further improve
vis-à-vis the strong 4Q 2022.
4) The dividend for the fourth quarter of 2022 will be
15 cents ($0.15) per share compared to 5 cents in the previous
quarter. The Dividend will be payable on March 28, 2023 to
shareholders on record as of March 14, 2023.
5) NAT has one of the lowest debt levels among publicly
listed tanker companies. Our net debt stood at $197 million equal
to $10.3 million per ship at December 31, 2022. The turnaround in
the market is further illustrated by our cash position that stood
at $59.6 million December 31, 2022 compared to $34.7 million same
time a year ago. Currently our cash position is about $90
million.
6) As we have seen in the past, political uncertainty
creates demand for the transport of oil. As a consequence of
Russia’s invasion of Ukraine and the West’s strong reaction, energy
security is of paramount concern. Oil will have to be sourced
from further away than in the past, creating longer voyages.
Uncertain times also encourage hoarding among some buyers, adding
to demand for oil and for the NAT tankers.
7) NAT in particular stands to benefit from the fact
that the supply of Suezmax tankers will remain at historic low
levels for at least the next two or three years.
Only 14 new ships are currently on order, representing only 2% of
the existing fleet. This is a 30 year low. Environmental
regulations, increased steel and production costs, and higher
interest rates make investing in new ships challenging. A small
order book for new tankers has always been positive for our
industry.
8) The NAT fleet of versatile suezmax tankers offers
flexibility in loading and discharging ports.
Through careful voyage planning and adjustment of speed of
our vessels, the NAT fleet is reducing emissions.
9) Financial information for the fourth quarter of 2022
and for other periods is enclosed in the full report
below.
Sincerely
Herbjørn Hansson
Founder, 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:
Alexander Kihle, Finance ManagerNordic American Tankers LtdTel:
+47 91 724 171
Bjørn Giæver, CFONordic American Tankers LtdTel: +1 888 755
8391
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