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,
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
At the time of this report the market has improved and we believe that we are close to a significant positive turnaround
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
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.
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.
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.
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.
Our top quality fleet as evidenced by “vettings” undertaken by the oil companies performed technically well last year.
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.
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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