Nordic American Tankers Ltd (NYSE

NAT) – Report as per December 31, 2023 – Dividend is up and solid prospects going forward

 

Thursday, February 29, 2024

 

Dear Shareholders and Investors,

 

Highlights: 

        

1. In 2023, the Net Voyage Revenue for Nordic American Tankers Ltd (NAT) totaled $262.2 million. This is a remarkable improvement from 2022, when Net Voyage Revenue was $168.8 million. Our performance produced a net profit of $98.7 million for 2023, more than six times the $15.1 million result for 2022.
   
   
2. Maximizing dividends is a key goal and higher earnings result in higher dividends. The dividend for the fourth quarter of 2023 will be 12 cents ($0.12) per share, up from 6 cents in the previous quarter. This marks our 106th consecutive quarterly dividend. The dividend is payable April 10, 2024 to shareholders on record as of March 20, 2024.
   
   
3. The average Time Charter Equivalent (TCE) for our spot vessels during the fourth quarter of 2023 came in at $41,580 per day per ship. Including vessels on term contracts, the total average NAT TCE was $39,170 per day per ship. The daily operating costs per ship are about $9,000, boding well for the dividend going forward.
   
   
4. We clearly see a continued strong market for us in 2024. About 57% of our spot voyage days for the first quarter of 2024 have now been booked at an average TCE of $40,690 per day per ship. There is a scarcity of our type of ships, leading to strong results.
   
   
5. The fourth quarter of 2023 produced a net profit of $17.5 million equaling an EPS of $0.08 per share. This is higher than the net profit for all of 2022 ($15.1 million) and more than twice the net profit from the third quarter of 2023 ($7.5 million).
   
   
6. The tanker market was already sailing into a tighter supply-demand balance before recent political events took place. Russia has invaded Ukraine. Hamas launched attacks on Israel. The Houthi’s launched missile attacks on commercial shipping in the Red Sea. The United States have taken action against Iran-sponsored militias in Iraq & Syria. These ongoing conflicts are affecting the world’s oil distribution routes resulting in longer voyages and higher demand for our tankers.
   
   
7. The NAT fleet of versatile suezmax tankers offer flexibility in loading and discharging ports. Through careful voyage planning and adjustment of speed of our vessels, we reduce emissions. Each individual ship in the NAT fleet is of excellent technical quality, as demonstrated in the vetting performance, the score board undertaken by the oil companies.