Nordic American Tanker upgraded to Hold from Underperform at Jefferies Jefferies upgraded Nordic American Tanker to Hold citing the improving outlook for crude oil tankers. The firm raised its price target for shares to $8.
Nordic American Tankers reports Q1 tanker rates averaged 37K per day per vessel Nordic American Tankers benefitted in Q1 from a strong Suezmax tanker market and the quality of its fleet. The significant drop in the oil price has affected the tanker industry positively. Cashflow from operations was $51M, compared with $24.5M in 4Q14. For all of 2014, cashflow from operations was $77.7M compared with ($11.1M) in 2013. The strong level in Q1 is reflected in an average TCE rate of about $37,000 per vessel per day. The size of its fleet allows NAT to reap immediate and sizeable profits when spot market rates rise. The company said that the Q2 tanker market is encouraging. The purchase of two Suezmax newbuildings, due to be delivered in 2016 and 2017, will not require the additional raising of equity from the capital markets. In recent months the price of oil fell to the lowest levels seen in recent years. This has positively affected the tanker market through increased transportation requirements and lower fuel costs.