Nordic American Offshore Ltd. (NYSE

NAO) 3Q2014 Dividend and Earnings Report: Dividend of $0.45 declared. - Seite 2

On October 20, 2014 the Board declared a cash dividend of $0.45 per share for 3Q2014 to shareholders of record as of November 7, 2014. The payment date is on or about November 21, 2014.

Net income for 3Q2014 was $2.8 million after a non-recurring cost of $1.5 million. In March 2014, NAO entered into the UK Tonnage Tax system. Following this only minimal taxes are levied on our operation. Our fleet currently operates in the North Sea only.

The profit and loss (P&L) account for 3Q2014 has been charged with a non-recurring cost of $1.5 million associated with the listing and IPO in New York July, 2014. This one-time success fee, agreed to in 2013, was divided among 28 NAO-related people who contributed to the success of the listing and the IPO process. If it had been charged directly to the equity, there would have been no P&L impact.

The Company's operating cash flow was $6.0 million in 3Q2014, compared with $7.7 million for 2Q2014. Adjusted for the non-recurring costs, operating cash flow was $7.5m in 3Q2014.

The figures show that the 3^rd quarter results are in line with the previous quarter.

As a matter of policy, the Company will always focus on maintaining a strong balance sheet with low net debt, thereby limiting the Company's financial risk. At the end of 3Q2014, net debt per NAO vessel in operation was zero. NAO has in place up to the end of 2018 a non-amortizing credit facility of $60 million, which is undrawn at this time. 

We concentrate on keeping our vessel operating costs low, while always maintaining our strong commitment to safe operations. As we expand our fleet, we do not anticipate that our administrative costs will rise correspondingly.

The Fleet

Our fleet is comprised of ten high-quality PSVs including four newbuildings. We currently have six vessels in operation, all in the North Sea, operating in the UK and the Norwegian Sector. The vessels to be delivered next year may operate in either sector or elsewhere. The significant fuel efficiency of our ships is also very attractive for the customers.

The Company's objective is to ensure spot or term employment for the fleet, including for the newbuildings. The specifications of the fleet are by and large of the same nature. NAO will seek to grow the fleet further.

The PSV Market

The Company believes the market outlook for our PSVs is positive. Now there is a seasonal weakening in the spot market.

We believe that lower oil prices, as we see now, will have limited impact on our operations. PSVs are critical to operating offshore and represent a small part of overall costs. The recent reduction in oil price may affect future offshore exploration activities. It should be noted that PSVs are part of the entire life-cycle of an offshore oilfield.