Nordic American Tankers Shows Positive Q3 Performance and Growth

Positive Developments for Nordic American Tankers Ltd

Dear Shareholders and Investors,

As we explore the performance of Nordic American Tankers Ltd, known by its ticker symbol (NYSE: NAT), we find ourselves in an optimistic position as we review recent outcomes and future prospects. Our company has established a robust international presence, with vessels loading and discharging in 68 different countries over the past five years. While quarterly numbers provide immediate insight, a broader perspective reveals NAT's upward trajectory, showcasing our potential for sustainable and profitable growth.

Third Quarter Performance Overview

During the third quarter of 2024, NAT secured time-charter contracts with both national and international oil companies, with total anticipated net revenue reaching around $125 million. This surge in long-term contracts is largely attributable to the recognized scarcity of Suezmax vessels. Our clients acknowledge this limited availability, prompting them to enter into enduring agreements with us.

Market Factors Influencing Growth

In recent years, the volume of sanctioned oil transported by lower-quality vessels, often referred to as the "dark fleet," has increased significantly. NAT, however, has chosen not to engage in this market, prioritizing ethical and sustainable shipping practices. Additionally, our vessels do not traverse the Suez Canal or operate in the Red Sea regions. With impending regulatory changes anticipated from the new US administration, we expect an increase in transportation opportunities, benefiting our operational capacity.

Financial Highlights and Investment in Fleet

For the ninety-two day period that ended on September 30, 2024, NAT reported a net profit of $8.7 million. This translates to earnings per share of $0.04, which marks an increase compared to the $7.5 million net profit reported for the same period last year. The third quarter of 2024 also saw an average NAT time-charter equivalent of $30,656 per day per vessel, against daily operating costs of roughly $9,000 per ship, granting us a strong profit margin.

NAT has maintained the tradition of paying dividends since its inception in 1995, and this commitment will continue. With plans to enhance our fleet with additional ships, we aim to positively influence dividend payments moving forward. For the third quarter, we have declared a dividend of $0.04 per share, constituting our 109th consecutive quarterly cash dividend. This payout is scheduled to occur on January 16, 2025, to shareholders of record as of December 17, 2024.

Commitment to Sustainability

In our ongoing efforts to promote sustainability and reduce emissions, we employ meticulous voyage planning and speed adjustments for our vessels. Each ship within the NAT fleet is maintained in excellent technical condition, a fact corroborated by our vetting scores from clients. This commitment positions us favorably among major oil and energy organizations, ensuring our ongoing contribution to a responsible maritime industry.

Conclusion

The upward momentum of Nordic American Tankers Ltd reflects a combination of strategic contracts, financial stability, and a steadfast commitment to sustainability. As we continue to navigate the complexities of the maritime logistics space, we stand poised to seize growth opportunities while upholding our principles. Our shareholders can remain confident in our promise to deliver value through strategic expansions and consistent dividend payments.

Sincerely,

Herbjorn Hansson
Founder, Chairman & CEO

Frequently Asked Questions

What were the main highlights of the third quarter for NAT?

NAT secured time-charter contracts worth about $125 million, reported a net profit of $8.7 million, and declared a dividend of $0.04 per share.

How does NAT plan to ensure profitability?

By securing long-term contracts and expanding its fleet, NAT aims to strengthen profitability while maintaining a robust operational margin.

What sustainability measures does NAT implement?

NAT practices careful voyage planning and speed adjustments to reduce emissions and ensure each vessel is technically sound, enhancing overall sustainability.

What is the future outlook for NAT?

With plans for fleet expansion and a favorable contracting environment, NAT is positioned for continued growth in the maritime industry.

How can shareholders expect to benefit from NAT's performance?

NAT's commitment to dividends, marked by its 109th consecutive payout announcement, along with potential growth in profits, reassures shareholders of their ongoing benefits.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.