Nordic American Tankers Plans Fleet Expansion and Sales

Author: Logan Wright Updated: 02-05-2025 09:45 AM

Fleet Expansion Plans for Nordic American Tankers

Dear Shareholders and Investors,

Nordic American Tankers Ltd (NYSE: NAT) is embarking on a significant initiative for 2025 centered around invigorating and expanding our fleet operations. Our objective includes purchasing two or three new vessels while strategically selling an equivalent number. This approach is part of our continuous effort to optimize our fleet's performance and capabilities.

Strategic Selling

We have already initiated this journey by agreeing to sell one of our suezmax vessels, built in 2003. This move will provide us with USD 22.5 million, effectively bolstering our balance sheet. The buyer is set to take possession of the ship in the first quarter of 2025, marking a vital step in our strategy.

Engaging in these transactions not only positions us to enhance our financial health but also helps improve our liquidity, thereby empowering us to be more agile in our responses to market changes.

Partners in Progress

Our ambitious fleet renewal is supported by two long-standing financing partners: Beal Bank, based in Dallas, and Ocean Yield, with its parent company situated in New York. Their continued partnership is crucial as we navigate this pivotal project.

Our financing strategy remains rooted in our commitment to prioritizing dividends while maintaining a robust balance sheet. Since our listing in New York in 1995, NAT has consistently paid dividends for 109 consecutive quarters, illustrating our long-term dedication to delivering value to our shareholders.

Future Outlook

As we progress through 2025, we anticipate a highly dynamic year for Nordic American Tankers. Our strategic initiatives not only aim to improve our fleet's operational efficiency but also to foster our relationship with shareholders. We take great pride in our earnings record and will continue to seek opportunities for growth and enhancement.

Sincerely,

Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd

Frequently Asked Questions

What is Nordic American Tankers planning for 2025?

Nordic American Tankers aims to renew its fleet by purchasing and selling vessels, strengthening its financial position and operational capacity.

How much will the sale of the suezmax vessel add to NAT's balance sheet?

The sale of the suezmax vessel, expected to net USD 22.5 million, will enhance the company’s balance sheet significantly.

Who are the financial partners supporting Nordic American Tankers?

The company is partnering with Beal Bank and Ocean Yield, both of whom have been longstanding supporters of its financial strategies.

How often has NAT paid dividends since its listing?

NAT has a strong history of paying dividends, maintaining this practice for 109 consecutive quarters since its listing.

What is the strategy behind selling and buying vessels?

This strategy is aimed at optimizing fleet performance, enhancing liquidity, and ensuring financial flexibility to adapt to market conditions.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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