Nordic American Offshore Ltd. (NYSE

NAO) 3Q2014 Dividend and Earnings Report: Dividend of $0.45 declared.

Link to the complete 3rd Quarter 2014 report:
http://hugin.info/201/R/1867157/656033.pdf

Hamilton, Bermuda, October 30, 2014.

Press release about Nordic American Offshore Ltd.

Nordic American Offshore Ltd. ("NAO" or "the Company") has declared a dividend of $0.45 per share for 3Q2014, as previously announced. This is the same dividend as for the previous two quarters. The record date is November 7, 2014 and the payment of dividend is expected to take place on or about November 21, 2014.  Since its establishment in late 2013 this start-up company has paid 3 dividends totalling $1.35 per share.

To prepare for a NYSE listing and for expansion, NAO had a successful Initial Public Offering (IPO) on the New York Stock Exchange in June 2014, raising net proceeds of around $100 million. NAO started trading June 12, 2014. After the IPO, the shares issued in the November 2013 private placement, which traded on the Oslo OTC market, were exchanged for NYSE traded shares. At the time of this report, the total share count is 23,431,370.

The main elements of the strategy of NAO are based on the same fundamentals as those of Nordic American Tankers Limited (NAT).  NAT is currently holding about 4 million shares or 17.1% of NAO.

The Company has ten high-quality Platform Supply Vessels, six in operation and four being built at Norwegian based shipyards. They are built in 2012 and onwards. Two of the newbuildings will be delivered in January 2015, and the other two are expected to be delivered during the third quarter 2015. Including a planned expansion of the credit facility, the Company will have the financial resources to take delivery of its four newbuildings on order, thereby offsetting the dilutive short term impact in sharecount following the June 2014 IPO.

Key points to consider:

• Earnings per share in 3Q2014 were $0.12 compared with $0.23 for 2Q2014 and $0.10 for 1Q2014. The weighted average number of shares was 23,431,370 in 3Q2014 vs 17,620,124 in 2Q2014, affecting our results on a per share basis. The Company is in a position to take delivery of the four 2015 newbuildings without issuing further equity.
• Net Income came to $2.8 million in 3Q2014, compared with $4.1 million in 2Q2014 and $1.7 million in 1Q2014. Operating cash flow^[1] was $6.0 million vs $7.7 million in 2Q2014. Adjusted for a non-recurring one-time cost, operating cash flow was $7.5million and Net Income of $4.3 million in 3Q2014.
• The Company has at the time of this report no net debt and its $60 million credit facility has not been drawn upon.
• The IPO in June 2014 strengthened the equity of the Company by about $100 million.
• Our vessels were fully utilized this quarter which is a reflection of the quality and standard of our fleet.

Financial Information