Nordic American Tankers Ltd (NYSE: NAT) – Report March 31, 2023 (First quarter 2023) – History in the making!
22 May 2023 - 7:31PM
Monday, May 22, 2023
Dear Shareholders and Investors,
Highlights:
- The average Time Charter Equivalent (TCE) for our spot vessels
(15) during the first quarter of 2023 came in at $60,005 per day
per ship. Including vessels on term contracts (4), the total
average NAT TCE was $51,902 per day per ship. This is the second
strongest first quarter TCE ever achieved in NAT’s 28 year history.
Our operating costs are about $8,000 per day per vessel.
- The net profit for 1Q 2023 landed at $46.9 million or an
earnings per share (EPS) of $0.22. The previous quarter saw a net
profit of $36 million and an EPS of $0.17. Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) for 1Q 2023
came in with a positive $67.7 million, compared to an adjusted
EBITDA of $51.1 million in 4Q 2022.
- The board has decided that the dividend after the first quarter
of 2023 will be 15 cents ($0.15) per share. The Dividend will be
payable on July 6, 2023 to shareholders on record as of June 15,
2023.
- The seasonal slowdown seen so far in 2Q 2023 has already
bottomed, at levels that in previous years would have been
perceived as peak season earnings. This goes to illustrate that the
scarcity of Suezmax tankers should secure a very interesting market
for NAT going forward. Seasonal variations will occur, but we
expect earnings to be at higher levels than in the past due to the
low orderbook of new ships.
- 65% of our spot voyage days for the second quarter of 2023 have
now been booked at an average TCE of $42,111 per day per ship. Spot
rates have now turned upwards, but if this level is achieved for
the full second quarter, it is a second quarter level only achieved
three times in the past for NAT.
- On the demand side, last year was focused on Europe’s energy
challenge following the Russian invasion in Ukraine. This year will
see the populations in China and other nations returning to
mobility and travel in a big way. We expect the re-emergence of
India and the Far East after the pandemic to have a significant
effect on oil markets. This should add to an already tight market
for NAT.
- NAT has one of the lowest debt levels among publicly listed
tanker companies. Our net debt stood at $168 million equal to $8.9
million per ship at March 31, 2023.
- 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.
- Financial information for the first quarter of 2023 and for
other periods is included later in this report.
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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