Nordic American Tankers Ltd (NYSE: NAT) –
Rhea-AI Summary
Nordic American Tankers (NAT) has announced its fleet renewal strategy for 2025, planning to purchase two or three ships while selling an equal number. As an initial step, the company has agreed to sell one Suezmax tanker (built 2003) for USD 22.5 million, with the transaction expected to complete in Q1 2025.
The company is collaborating with its long-term financing partners, Beal Bank (Dallas) and Ocean Yield (New York), to support this fleet modernization initiative. These financial arrangements aim to increase liquidity and enhance financial flexibility while maintaining NAT's commitment to dividend payments and balance sheet strength.
NAT highlights its consistent dividend payment history, having distributed dividends for 109 consecutive quarters since its New York listing in 1995.
Positive
- Sale of 2003 Suezmax tanker for USD 22.5 million strengthening balance sheet
- Secured financing partnerships with Beal Bank and Ocean Yield
- Increased liquidity and financial flexibility through new transactions
- Consistent dividend payment track record (109 consecutive quarters)
Negative
- Aging fleet requiring significant renewal investment
- Potential short-term fleet capacity reduction during transition period
News Market Reaction 1 Alert
On the day this news was published, NAT declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
REPEAT
Wednesday, February 5, 2025
Dear Shareholders and Investors,
A major project for 2025 is to renew and grow our fleet. We plan to buy two or three ships and to sell two or three.
As a first step, last week we agreed to sell one of our suezmaxes, built in 2003, which will net our company USD 22.5 million and thus strengthen our balance sheet. The buyer will take over the vessel in Q1 2025.
We are helped in this major project by our two longtime financing partners, Beal Bank based in Dallas, and Ocean Yield, whose parent company is based in New York.
As always, our financing is driven by our main goals of prioritizing dividends and retaining a sturdy balance sheet.
Since NAT became stock listed in New York in 1995, we have paid dividends for 109 consecutive quarters.
The transactions with Beal Bank and Ocean Yield will increase our liquidity and strongly enhance our financial flexibility.
We look forward to a very active year for NAT.
Sincerely,
Herbjorn 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:
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391
Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 724 171
FAQ
How much will NAT receive from the sale of its 2003 Suezmax tanker?
What is NAT's fleet renewal plan for 2025?
Who are NAT's financing partners for the 2025 fleet renewal project?
How many consecutive quarters has NAT paid dividends?
When will the buyer take over NAT's sold Suezmax vessel?
