Nordic American Tankers plans to renew its fleet by selling and purchasing ships to strengthen its financial position.
Quiver AI Summary
Nordic American Tankers Ltd. (NAT) has announced a major fleet renewal and growth plan for 2025, which involves the purchase of two or three new ships while selling an equal number. The company has already agreed to sell a 2003-built suezmax vessel for USD 22.5 million, enhancing its balance sheet. The transaction is backed by financing partners Beal Bank and Ocean Yield, aiming to improve liquidity and financial flexibility. Since being listed in New York in 1995, NAT has consistently paid dividends for 109 quarters. The CEO, Herbjorn Hansson, expressed optimism for an active year ahead for the company.
Potential Positives
- Agreement to sell a suezmax vessel built in 2003 for USD 22.5 million, which will strengthen the company’s balance sheet.
- Plans to renew and grow the fleet by acquiring two or three ships, indicating a proactive approach to fleet management.
- Ongoing commitment to paying dividends, maintaining a record of 109 consecutive quarters of dividend payments, which highlights the company's focus on shareholder returns.
- Partnerships with Beal Bank and Ocean Yield to enhance liquidity and financial flexibility as part of the fleet renewal project.
Potential Negatives
- The planned sale of a suezmax vessel built in 2003 raises concerns about the aging fleet and potential operational challenges in maintaining competitiveness in the market.
- The company's reliance on financing partners for liquidity and financial flexibility may indicate underlying cash flow issues or a weakness in internal funding capabilities.
- The cautionary statement regarding forward-looking statements highlights significant uncertainties, which may undermine investor confidence in the company's projected growth and financial stability.
FAQ
What is the major project planned for 2025 at Nordic American Tankers?
The major project involves renewing and growing the fleet by buying and selling ships.
How much will the sale of the suezmax vessel net for the company?
The sale of the suezmax vessel will net Nordic American Tankers USD 22.5 million.
Who are the financing partners for Nordic American Tankers' project?
The financing partners are Beal Bank and Ocean Yield.
How long has Nordic American Tankers paid dividends?
Northern American Tankers has paid dividends for 109 consecutive quarters since listing in 1995.
What is the impact of the financial transactions on the company's liquidity?
The transactions will increase Nordic American Tankers' liquidity and enhance financial flexibility.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NAT Hedge Fund Activity
We have seen 94 institutional investors add shares of $NAT stock to their portfolio, and 97 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 3,283,065 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $8,207,662
- GOLDMAN SACHS GROUP INC removed 1,835,678 shares (-26.8%) from their portfolio in Q3 2024, for an estimated $6,736,938
- AMERICAN CENTURY COMPANIES INC added 1,526,260 shares (+43.6%) to their portfolio in Q3 2024, for an estimated $5,601,374
- TWO SIGMA ADVISERS, LP added 1,521,900 shares (+67.6%) to their portfolio in Q3 2024, for an estimated $5,585,373
- CITADEL ADVISORS LLC removed 1,232,263 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $4,522,405
- ARROWSTREET CAPITAL, LIMITED PARTNERSHIP removed 1,153,237 shares (-86.9%) from their portfolio in Q3 2024, for an estimated $4,232,379
- JPMORGAN CHASE & CO removed 946,604 shares (-60.1%) from their portfolio in Q3 2024, for an estimated $3,474,036
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
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 bases 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