Nordic American Tankers (NYSE

NAT) - The 2nd Quarter 2018 report - A busy quarter

Link to the complete 2nd Quarter 2018 report:
http://hugin.info/201/R/2210734/860760.pdf

Hamilton, Bermuda, August 14^th 2018

Highlights:

• On July 25, 2018, we announced our 84th consecutive quarterly dividend ($0.02 per share). This is an unparalleled dividend performance in the volatile tanker industry. With improved market conditions, higher dividends can be expected.

• The time charter equivalent for our vessels during 2Q2018 was $10,500 per day per ship.
  In 1Q2018 it was $11,200 per day per vessel and in 2Q2017 it was $16,100 per day per vessel.

• In June we entered into a 3-year fixed time charter contract with a major energy company for our second newbuilding for delivery in August this year. The contract is expected to commence in the autumn of 2018 and has a base rate of $21,000/day.  Two optional periods at higher rates could extend the TC contract into 2023.

• On July 10, 2018 we took delivery of the first of our three newbuild Suezmax vessels from Samsung in South Korea. The vessel was named Nordic Aquarius and was delivered on time and budget.

• Towards the end of the 2^nd quarter NAT entered into several agreements to sell 8 Suezmax vessels. These vessels have now been delivered to their respective new owners.

• The new additions and sale of vessels have reduced the average age of our fleet. Going forward, we expect the NAT fleet to expand when timing is right.

• Also in 2Q2018, spot market rates were below our cash break even. We are well familiar with the volatile nature of our business. We have seen in the past that markets can turn quickly. We see a strengthening of the world economy which is good for NAT. Ironically, political uncertainty may also stimulate the tanker market.  We are optimistic going forward as NAT is well positioned when the tanker market improves.

• During the 2^nd quarter we decided to cancel our contemplated bond offering. This decision was well received.

• NAT Net Loss for 2Q2018 (after depreciation, G&A and finance charges) came in at -$27.2M against a Net Loss for 1Q2018 of -19.7M. A better reflection of the performance for the quarter, the Adjusted Net Operating Earnings*, came in at $0.8M for 2Q2018, down from $4.4M in 1Q 2018.

• Our net debt** at the end of 2Q2018 stood at about $203M for the fleet, equaling about $7.3M per vessel, which is attractive. 

• For many years we have had focus on the environment and sound technical solutions.

• Later in this report we have included financial information for 2Q2018 and for other periods. 

^* Adjusted Net Operating Earnings (Loss) represents Net Operating Earnings or Loss before depreciation and non-cash administrative charges