NORDIC AMERICAN TANKERS LIMITED
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||||||
(registrant)
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||||||
Dated: November 15, 2016
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By:
|
/S/ HERBJØRN HANSSON
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Herbjørn Hansson
|
||||||
Chairman, Chief Executive Officer and President
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· |
NAT has paid quarterly dividends 77 times of $47.91 per share during the period since 1997.
|
· |
The low oil price is positive for the tanker market. For the consumer, a reduced oil price can be compared with a tax break, stimulating the economy.
|
· |
The recent equity offering of $120m was for the expansion beyond the current 30 vessel fleet. In October 2016, NAT announced agreements with Samsung to build three Suezmax newbuildings for delivery in 2018. Including these three newbuildings, we expect that the NAT fleet will consist of minimum 33 vessels. The construction of our newbuilding for delivery in 1Q2017 is on schedule.
|
· |
The quality of the NAT fleet is at the top as evidenced by our vetting statistics, that is, inspections of our ships by clients. In such vetting processes safety for our crew, the environment and our assets are in focus.
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· |
Operating cash flow2 per share has been as follows: $0.24 for 3Q2016, $0.46 for 2Q2016 and $0.55 for 3Q2015.
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· |
NAT has a credit facility of $500m, maturing in December 2020.
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· |
Net Asset Value (NAV), or the steel value of a vessel, is irrelevant when valuing NAT as a going concern.
|
· |
A homogenous fleet reduces our cash operating costs, which helps to keep our cash break-even rate below $11,000 per day per vessel, including financial charges and G&A costs.
|
NAT continues to maintain a strong balance sheet with low net debt and is focusing on keeping a low financial risk. At the end of 3Q2016, the Company had net debt of about $248m or about $8.5m per vessel.
The table on the right shows our operating cash flow, stock liquidity and dividend over the last eight quarters. Liquidity in the stock is high compared with other tanker companies.
For further information on our financial position for 3Q2016, 2Q2016 and 3Q2015, please see later in this release.
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The graph to the right shows the average yearly spot rates since 2000 as reported by Clarksons Platou. The rates above are an indication of the level of the market and its direction.
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATION
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||||||||||||||||||||
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||||||||||||||||||||
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Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||
Amounts in USD '000
|
Sep. 30, 2016
(unaudited)
|
Jun. 30, 2016
(unaudited)
|
Sep. 30, 2015
(unaudited)
|
Sep. 30, 2016
(unaudited)
|
Sep. 30, 2015
(unaudited)
|
|||||||||||||||
Net Voyage Revenue
|
45,864
|
***
|
61,652
|
66,673
|
184,250
|
***
|
209,697
|
|||||||||||||
Vessel Operating Expenses
|
(21,647
|
)
|
(18,743
|
)
|
(15,733
|
)
|
(58,579
|
)
|
(48,762
|
)
|
||||||||||
General and Administrative Expenses
|
(3,158
|
)*
|
(3,850
|
)*
|
(1,384
|
)*
|
(10,376
|
)**
|
(6,290
|
)**
|
||||||||||
Depreciation Expenses
|
(23,248
|
)
|
(21,447
|
)
|
(20,477
|
)
|
(66,320
|
)
|
(60,944
|
)
|
||||||||||
Operating Expenses
|
(48,053
|
)
|
(44,039
|
)
|
(37,594
|
)
|
(135,275
|
)
|
(115,996
|
)
|
||||||||||
Net Operating Gain (Loss)
|
(2,189
|
)
|
17,612
|
29,079
|
48,975
|
93,701
|
||||||||||||||
Interest Income
|
27
|
36
|
33
|
91
|
106
|
|||||||||||||||
Interest Expense
|
(2,946
|
)
|
(2,415
|
)
|
(2,604
|
)
|
(7,897
|
)
|
(8,004
|
)
|
||||||||||
Other Financial Income (Expense)
|
(2,466
|
)
|
(2,264
|
)
|
(678
|
)
|
(6,473
|
)
|
(1,330
|
)
|
||||||||||
Total Other Expenses
|
(5,386
|
)
|
(4,643
|
)
|
(3,249
|
)
|
(14,280
|
)
|
(9,228
|
)
|
||||||||||
Net Gain (Loss)
|
(7,574
|
)
|
12,970
|
25,831
|
34,696
|
84,472
|
||||||||||||||
Basic Gain (Loss) per Share
|
(0.08
|
)
|
0.15
|
0.29
|
0.39
|
0.95
|
||||||||||||||
Basic Weighted Average Number of Common Shares Outstanding
|
89,457,166
|
89,319,666
|
89,182,001
|
89,361,814
|
89,182,001
|
|||||||||||||||
Common Shares Outstanding
|
101,969,666
|
89,319,666
|
89,182,001
|
101,969,666
|
89,182,001
|
|||||||||||||||
*) |
The G&A for the three months ended September 30, 2016, June 30, 2016 and September 30, 2015 include non-cash charges of $0.6m, $1.6m and $(0.5m) respectively which are charges related to share based compensation and pension cost.
|
**) |
The G&A for the nine months ended September 30, 2016 and September 30, 2015 include non-cash charges of $3.0m and $(0.1m) respectively, which are charges related to share based compensation and pension cost.
|
***) |
Net Voyage Revenue for the three and nine months ended September 30, 2016 includes a $5.3m income related to settlement with Gulf Navigation
|
Amounts in USD '000
|
Sep. 30, 2016
(unaudited)
|
Sep. 30, 2015
(unaudited)
|
Dec. 31, 2015
(unaudited)1 |
|||||||||
Cash and Cash Equivalents
|
151,550
|
47,375
|
29,889
|
|||||||||
Accounts Receivable, net
|
19,195
|
26,934
|
28,598
|
|||||||||
Prepaid Expenses
|
4,491
|
3,275
|
4,372
|
|||||||||
Inventory
|
21,396
|
17,334
|
14,843
|
|||||||||
Voyages in Progress
|
21,499
|
18,473
|
37,353
|
|||||||||
Other Current Assets
|
2,778
|
2,852
|
3,125
|
|||||||||
Total current assets
|
220,909
|
116,242
|
118,179
|
|||||||||
Vessels, Net
|
1,076,910
|
919,102
|
962,685
|
|||||||||
Deposit for vessels
|
32,000
|
44,450
|
64,000
|
|||||||||
Goodwill
|
18,979
|
18,979
|
18,979
|
|||||||||
Investment in Nordic American Offshore Ltd.
|
56,951
|
57,244
|
64,877
|
|||||||||
Other Non-current Assets
|
10,497
|
5,557
|
10,474
|
|||||||||
Total non-current assets
|
1,195,337
|
1,045,333
|
1,121,015
|
|||||||||
Total Assets
|
1,416,246
|
1,161,575
|
1,239,194
|
|||||||||
Accounts Payable
|
3,601
|
4,401
|
4,247
|
|||||||||
Accrued Voyage Expenses
|
9,211
|
4,204
|
7,035
|
|||||||||
Other Current Liabilities
|
8,766
|
7,736
|
9,577
|
|||||||||
Total Current liabilities
|
21,578
|
16,341
|
20,859
|
|||||||||
Long-term Debt
|
442,472
|
*
|
248,689
|
*
|
324,568
|
*
|
||||||
Deferred Compensation Liability
|
15,472
|
12,222
|
13,046
|
|||||||||
Total Non-current Liabilities
|
457,944
|
260,910
|
337,614
|
|||||||||
Shareholders' Equity
|
936,725
|
884,324
|
880,721
|
|||||||||
Total Liabilities and Shareholders' Equity
|
1,416,246
|
1,161,575
|
1,239,194
|
1 |
Annual 2015 financial information is derived from audited financial statements
|
* |
Long-term Debt consist of outstanding amounts on our Credit Facility less unamortized deferred financing cost. Outstanding amounts on our Credit Facility were 447,000, 250,000 and 330,000 as of September 30, 2016, September 30, 2015 and December 31, 2015, respectively.
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
|
Nine months ended
|
Twelve months ended
|
||||||||||
Sep. 30, 2016
|
Sep. 30, 2015
|
Dec. 31, 2015
|
||||||||||
Amounts in USD '000
|
(unaudited)
|
(unaudited)
|
(unaudited)1
|
|||||||||
Net Cash Provided by (Used in) Operating Activities
|
124,275
|
139,205
|
174,391
|
|||||||||
Investment in Vessels
|
(142,029
|
)
|
(106,851
|
)
|
(187,373
|
)
|
||||||
Investment in Nordic American Offshore Ltd
|
0
|
0
|
(9,508
|
)
|
||||||||
Long Term Deposit
|
0
|
0
|
(5,000
|
)
|
||||||||
Other
|
0
|
0
|
231
|
|||||||||
Return of investments
|
1,505
|
3,553
|
4,227
|
|||||||||
Net Cash Provided by (Used in) Investing Activities
|
(140,524
|
)
|
(103,298
|
)
|
(197,423
|
)
|
||||||
Proceeds from Issuance of Common Stock
|
120,094
|
0
|
0
|
|||||||||
Proceeds from Use of Credit Facility
|
117,000
|
0
|
80,000
|
|||||||||
Credit Facility Costs
|
(83
|
)
|
0
|
(4,640
|
)
|
|||||||
Dividends Paid
|
(99,142
|
)
|
(89,182
|
)
|
(123,071
|
)
|
||||||
Net Cash Provided by (Used in) Financing Activities
|
137,870
|
(89,182
|
)
|
(47,711
|
)
|
|||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
121,621
|
(53,276
|
)
|
(70,743
|
)
|
|||||||
Effect of exchange rate changes on Cash
|
39
|
(84
|
)
|
(104
|
)
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
29,889
|
100,735
|
100,735
|
|||||||||
Cash and Cash Equivalents at End of Period
|
151,550
|
47,375
|
29,889
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||||||
|
Three Months Ended
|
Nine Months ended
|
||||||||||||||||||
Amounts in USD '000
|
Sep. 30, 2016
(unaudited) |
Jun. 30, 2016
(unaudited) |
Sep. 30, 2015
(unaudited) |
Sep. 30, 2016
(unaudited)
|
Sep. 30, 2015
(unaudited) |
|||||||||||||||
Voyage Revenue
|
71,710
|
88,564
|
101,884
|
267,026
|
331,179
|
|||||||||||||||
Settlement
|
5,328
|
0
|
0
|
5,328
|
0
|
|||||||||||||||
Voyage Expense
|
(31,174
|
)
|
(26,913
|
)
|
(35,211
|
)
|
(88,104
|
)
|
(121,482
|
)
|
||||||||||
Net Voyage Revenue (1)
|
45,864
|
61,652
|
66,673
|
184,250
|
209,697
|
|
Three Months Ended
|
Nine Months ended
|
||||||||||||||||||
|
Sep. 30, 2016
(unaudited) |
Jun. 30, 2016
(unaudited) |
Sep. 30, 2015
(unaudited) |
Sep. 30, 2016
(unaudited)
|
Sep. 30, 2015
(unaudited) |
|||||||||||||||
Net Operating Gain (Loss)
|
(2,189
|
)
|
17,612
|
29,079
|
48,975
|
93,701
|
||||||||||||||
Depreciation Expense
|
23,248
|
21,447
|
20,477
|
66,320
|
60,944
|
|||||||||||||||
Share Based Compensation and Pension Cost
|
632
|
1,633
|
(499
|
)
|
2,974
|
(60
|
)
|
|||||||||||||
Operating Cash Flow (2)
|
21,691
|
40,692
|
49,057
|
118,270
|
154,585
|
(1) |
Net voyage revenues represents voyage revenues less voyage expenses such as bunker fuel, port fees, canal tolls and brokerage commissions. Net voyage revenues is included because certain investors use this data to measure a shipping company's financial performance. Net voyage revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.
|
(2) |
Operating cash flow represent s income from vessel operations before depreciation, non-cash administrative charges and net financing costs. Operating cash flow is included because certain investors use this data to measure a shipping company's financial performance. Operating cash flow is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.
|
Contacts:
|
|
Jan H. A. Moller,
Head of Investor Relations & Financial Manager
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 90 11 53 75
|
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
|
Turid M. Sørensen, CFO & EVP
Nordic American Tankers Limited
Tel: +47 33 42 73 00 or +47 90 57 29 27
|
Herbjørn Hansson, Chairman & CEO
Nordic American Tankers Limited
Tel: +1 866 805 9504 or +47 90 14 62 91
|
Rolf Amundsen, Advisor
Nordic American Tankers Limited
Tel: +1 800 601 9079 or + 47 908 26 906
|
Web-site: www.nat.bm
|