NAT announces the acquisition of a Suezmax tanker and the sale of a 2003 vessel, enhancing financial flexibility.
Quiver AI Summary
On January 22, 2025, Nordic American Tankers Ltd. (NAT) announced several recent transactions highlighting its financial activity and position. The company declared a purchase option for a 2018-built Suezmax tanker at favorable terms and confirmed the sale of a 2003-built vessel to a UK-based owner, which is expected to close in February and provide a cash influx of $22.5 million. NAT emphasized its solid financial standing and plans for future expansion while reaffirming its commitment to prioritizing dividends for shareholders. The press release also included cautionary statements regarding forward-looking projections and the inherent risks involved.
Potential Positives
- NAT has successfully declared the purchase option for a 2018-built Suezmax tanker, indicating strategic asset acquisition.
- The upcoming sale of a 2003-built vessel is expected to produce a substantial cash injection of USD 22.5 million, enhancing the company’s liquidity.
- The press release emphasizes NAT's financial flexibility and solid position, reflecting confidence in the company’s future operations.
- The commitment to prioritize dividends signals a focus on shareholder value and investor confidence.
Potential Negatives
- The reliance on forward-looking statements indicates uncertainty regarding future performance, which may cause concern for investors about the company's ability to achieve its projected goals.
- The company emphasizes the challenging nature of assumptions behind its projections, which may lead to skepticism from shareholders regarding management's confidence in the company's strategies and plans.
- The mention of various factors that could cause actual results to differ materially from projections suggests potential vulnerabilities in the company's operations and market position, which could deter potential investors.
FAQ
What recent transactions did Nordic American Tankers complete?
NAT declared a purchase option for a Suezmax tanker and sold a 2003-built vessel, generating USD 22.5 million.
How will the recent sale impact NAT's financial position?
The sale is expected to produce a significant cash injection, reflecting NAT's financial flexibility for future expansion.
Is dividend distribution still a priority for NAT?
Yes, NAT assures shareholders that dividend distribution will always be a priority going forward.
What does the forward-looking statement caution entail?
The cautionary statement highlights the uncertainties around future projections, emphasizing that results may differ from expectations.
Who should shareholders contact for more information?
Shareholders can contact Bjørn Giæver, CFO, or Alexander Kihle, Finance Manager, for further inquiries.
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 95 institutional investors add shares of $NAT stock to their portfolio, and 91 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- 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
- PHILIP JAMES WEALTH MANGEMENT, LLC added 1,108,591 shares (+inf%) to their portfolio in Q3 2024, for an estimated $4,068,528
- 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, January 22, 2025
Dear Shareholders and Investors,
In the recent past, NAT has carried through several transactions, reflecting a very active period.
NAT has declared the purchase option for a 2018-built Suezmax tanker on favorable terms from a close financing partner.
Furthermore, we have also sold a 2003-built vessel to a UK based owner.
This sale which is expected to close in the second half of February, will produce a cash injection of USD 22.5 million.
NAT is in a very solid position and the transactions above reflect our financial flexibility.
Going forward, we see expansion on the horizon.
We wish to assure shareholders that dividend always will be a priority.
Please also see our home page www.nat.bm
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd.
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