Nordic American Tankers reports significant activity in 2025, including vessel acquisitions, sales, and a new financing agreement.
Quiver AI Summary
Nordic American Tankers (NAT) has experienced a highly active start to 2025, focusing on vessel acquisitions and sales, while maintaining a commitment to dividends. The company reported the purchase of two vessels and declared purchase options on two others, alongside the sale of several ships as part of its strategic plan. Key developments include the acquisition of the Suezmax tankers Nordic Aquarius and Nordic Galaxy, financed with lease agreements, and the sale of the Nordic Apollo and Nordic Castor. NAT also secured a new financing agreement of $150 million with Beal Bank for the refinancing of seven vessels. Overall, NAT's leadership expresses confidence in a positive trajectory and strong market positioning.
Potential Positives
- Nordic American has successfully completed the purchase of two vessels and secured refinancing arrangements, demonstrating strong operational activity and financial maneuverability.
- The sale of the 2003-built Suezmax tanker Nordic Apollo for $22.9 million contributes positively to the company's asset management and cash flow.
- The signing of a five-year financing agreement for $150 million provides financial stability and supports future growth plans.
- The company is actively expanding its fleet by acquiring modern Suezmax tankers, indicating confidence in market growth and operational capabilities.
Potential Negatives
- Forward-looking statements indicate uncertainty in future performance and reliance on assumptions that could be significantly impacted by uncontrollable factors, potentially undermining investor confidence.
- The refinancing arrangements and lease financing involve risks that could affect the company's financial stability if market conditions change adversely.
- The sale of older vessels could suggest issues with fleet aging or operational challenges, raising concerns about the comparative value and performance of the remaining fleet.
FAQ
What recent acquisitions has Nordic American Tankers made?
Nordic American Tankers has acquired two vessels and declared purchase options for two leased ships since the start of 2025.
What vessels did Nordic American Tankers sell in 2025?
The company sold the 2003-built Suezmax tanker, Nordic Apollo, and the 2004-built Nordic Castor during 2025.
What financing agreements has NAT entered into recently?
NAT signed a five-year financing agreement worth $150 million with Beal Bank/CLMG for a secured credit arrangement.
When were the new vessels delivered to Nordic American Tankers?
The vessels Nordic Galaxy and Nordic Moon were delivered on April 4, 2025, and April 28, 2025, respectively.
What is the current market outlook for Nordic American Tankers?
Nordic American Tankers is in a strong position, marking one of its most active periods in years.
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 109 institutional investors add shares of $NAT stock to their portfolio, and 94 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
- CITADEL ADVISORS LLC added 3,001,376 shares (+607566.0%) to their portfolio in Q4 2024, for an estimated $7,503,440
- NUVEEN ASSET MANAGEMENT, LLC removed 1,291,537 shares (-71.1%) from their portfolio in Q4 2024, for an estimated $3,228,842
- GOLDMAN SACHS GROUP INC removed 947,119 shares (-18.9%) from their portfolio in Q4 2024, for an estimated $2,367,797
- BRIDGEWAY CAPITAL MANAGEMENT, LLC added 828,717 shares (+inf%) to their portfolio in Q4 2024, for an estimated $2,071,792
- UBS GROUP AG added 647,088 shares (+132.9%) to their portfolio in Q4 2024, for an estimated $1,617,720
- TRUEMARK INVESTMENTS, LLC removed 598,688 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $1,472,772
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Friday, May 9, 2025
Dear Shareholders and Investors,
The first months of 2025 since the end of 2024 has been the most active period in Nordic American (NAT) for several years. The path forward is up. Dividend is a priority.
As per previous communication to the market, we are in the process of acquiring two or three vessels and to sell a few ships.
We have purchased two vessels, declared purchase options on two of our lease financed ships and subsequently refinanced them. As a part of our total plan, two of our early built vessels have been sold.
Below is pertinent information, reflecting the active period since the start of 2025:
- January 22nd, 2025, NAT announced that it had declared the purchase option for the 2018 built Suezmax Nordic Aquarius. The purchase option price was $24 mill and a refinancing of the ship, reflecting the strong market value appreciation has been agreed with our finance partner Ocean Yield.
- January 22nd, 2025, we also announced the sale of the 2003-built Suezmax tanker, Nordic Apollo, at a price of $22.9 million.
- February 6th, 2025, we signed a five-year financing agreement with Beal Bank/CLMG for a Senior Secured Credit Agreement on new terms, referred to as the Amended and Restated Agreement. This arrangement replaces the facility of February 12, 2019, and is in the amount of $150 million. It is a single loan with collateral security in 7 of our suezmax vessels.
- February 28th, 2025, NAT announced that it had purchased one 2016-built Suezmax, built in South Korea, which was named Nordic Galaxy. The price was $66 million, and the vessel was financed with 50% lease financing with Ocean Yield. The vessel was delivered to us April 4, 2025.
- February 28th, 2025, NAT announced it had declared the purchase option for the 2018-built Suezmax tanker Nordic Cygnus. The purchase option price was $24 mill and a refinancing of the ship, reflecting the strong market value appreciation, has been agreed with Ocean Yield.
- March 14, 2025, Nordic American announced that it had agreed to purchase a second 2016-built Suezmax tanker which was named Nordic Moon. This was a sister vessel of the previously purchased vessel and built at the Sungdong South Korean shipyard. The price was $66 million, and this acquisition has also been 50% lease financed with Ocean Yield. The vessel was delivered to us April 28, 2025.
- On May 2nd, 2025, NAT entered into an agreement to sell the Nordic Castor (2004), at the price of $22.5 million net to us.
In summary:
Nordic American is in a strong position and is in one of the most active periods for years.
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