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Stock Market & Financial Investment News

News Breaks
June 1, 2014
18:12 EDTNATNordic American Tanker acquires two Suezmax vessels at $36.5M each
Nordic American Tankers announced that the company has agreed to acquire two Suezmax vessels, delivered from a top shipyard in 2005. The agreed purchase price is $36.5M each. The vessels are expected to be delivered to us no later than August. "The acquisitions will be financed from the financial resources of the company. Including the delivery of the current acquisitions, NAT will have a fleet of 22 Suezmax vessels - enhancing our dividend and earnings capacity. The acquired vessels are essentially sister ships to other vessels in our current fleet. It is of significant importance to have more or less identical vessels in the fleet both from an operational and cost synergy point of view." The vessels were built to high technical specifications. The company added, "Our focus on safety for crew, vessels and the environment will never cease. NAT is a company built on quality in all respects. The acquisition represents a natural step in the further development of NAT. The company will seek to increase its dividend and earnings capacity through further expansion, when the time is right. We believe that our strong balance sheet, well defined and transparent operating model provide the company with a strong competitive position."
News For NAT From The Last 14 Days
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November 20, 2014
05:55 EDTNATNordic American Tankers CEO says 'low oil price good for tanker industry'
Herbjørn Hansson, chairman & CEO of Nordic American Tankers, released a letter to shareholders staing: "Let me be very clear that the effect is positive for the world tanker business. The upswing in Suezmax tanker rates in the recent past may have to some extent to do with the decrease in the oil price. The Suezmax tanker market is strong at the time of this letter which is boding well for Q4. The most significant impact of a lower oil price is an increase in oil demand. Lower prices may trigger stockpiling or have a more general positive impact. A saving of $20 per barrel equates to savings for the U.S. of about $55B annually. Such an oil price decrease has the same effect on the overall economy as a tax reduction. By far our largest cost item is the bunker fuel that the ships are burning in the main engines. Until recently, bunker fuel costs stood at about $600-$650 per ton. Our 22 vessels typically burn about 40-50 tons of fuel per day each depending upon the speed of the vessel. Recently bunker prices have dropped to around $450 per ton, decreasing our cost base. This is also positive for our business. We believe that there are positive signs in the market for Suezmax tankers. With this letter I wish to make it clear that a lower oil price is contributing positively to our business beyond the effects of changing trade patterns and constrained Suezmax tanker supply growth. We remain cautious as always but we believe we see some bright spots on the horizon."

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