Nordic American Tankers Ltd (NYSE
NAT) – The Full Year 2020 & the 4th quarter – 2020 was a good year. NAT is a dividend company. Good market prospects
February 26, 2021
Dear Shareholders and Investors,
Highlights:
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The following main elements in our business stand out at this time:
- During 2020 we distributed $67.2 million in cash dividends and repaid our existing loans with a gross amount of $75.5 million.
- The first half of 2020 was a strong period for NAT
- The third quarter of 2020 came out positively with a timecharter equivalent of about $25,000 per day per ship
- The fourth quarter of 2020 was weak
- We undertook planned technical maintenance of our ships during softer market periods of 2020
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At the time of this report the market has improved and we believe that we are close to a significant positive turnaround
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The full year 2020 produced a net income of $50 million or an earning per share (EPS) of $0.34. This is an improvement of about $60 million in 2020 compared to 2019, which produced an EPS
of -$0.07.
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We see strong oil demand, in particular from Asia for 2021. This is good for us. Oil will be required to improve standard of living for millions of people worldwide.
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In the final quarter of 2020 we concluded the financing of the two newbuilding suezmaxes, which we ordered in September 2020. This financing offers us pre-delivery funding for the last
two pre-delivery instalments of the newbuildings, if required.
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In December 2020, we expanded our senior secured loan with our existing lender in Texas with $30 million, as a liquidity reserve. Accordingly, our long term liabilities as per December
31, 2020 stood at $335.5 million.
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During 2020, 11 of our vessels were taken through scheduled drydockings. The majority of these dockings were conducted during the second half of the year. For 2021, we have 4 vessels due
for scheduled drydockings and our fleet is as such ready for a recovery.
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Our top quality fleet as evidenced by “vettings” undertaken by the oil companies performed technically well last year.
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The reduced oil production from OPEC+ during the fourth quarter of 2020 affected our earnings. The average time charter equivalent (TCE) for our trading fleet during the fourth quarter of
2020 was $8,700 per day per ship.
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We see that the market is finely balanced and there are clear signs we are going into a stronger market.
- Cash dividends are a priority for NAT. In 2020 we paid $67.2 million or 45 cents per share in cash dividends.
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