Friday, May 9, 2025
Dear Shareholders and Investors,
The first months of 2025 since the end of 2024 has been the most active period in Nordic American (NAT) for several years. The path forward is up. Dividend is a priority.
As per previous communication to the market, we are in the process of acquiring two or three vessels and to sell a few ships.
We have purchased two vessels, declared purchase options on two of our lease financed ships and subsequently refinanced them. As a part of our total plan, two of our early built vessels have been sold.
Below is pertinent information, reflecting the active period since the start of 2025:
- January 22nd, 2025, NAT announced that it had declared the purchase option for the 2018 built Suezmax Nordic Aquarius. The purchase option price was $24 mill and a refinancing of the ship, reflecting the strong market value appreciation has been agreed with our finance partner Ocean Yield.
- January 22nd, 2025, we also announced the sale of the 2003-built Suezmax tanker, Nordic Apollo, at a price of $22.9 million.
- February 6th, 2025, we signed a five-year financing agreement with Beal Bank/CLMG for a Senior Secured Credit Agreement on new terms, referred to as the Amended and Restated Agreement. This arrangement replaces the facility of February 12, 2019, and is in the amount of $150 million. It is a single loan with collateral security in 7 of our suezmax vessels.
- February 28th, 2025, NAT announced that it had purchased one 2016-built Suezmax, built in South Korea, which was named Nordic Galaxy. The price was $66 million, and the vessel was financed with 50% lease financing with Ocean Yield. The vessel was delivered to us April 4, 2025.
- February 28th, 2025, NAT announced it had declared the purchase option for the 2018-built Suezmax tanker Nordic Cygnus. The purchase option price was $24 mill and a refinancing of the ship, reflecting the strong market value appreciation, has been agreed with Ocean Yield.
- March 14, 2025, Nordic American announced that it had agreed to purchase a second 2016-built Suezmax tanker which was named Nordic Moon. This was a sister vessel of the previously purchased vessel and built at the Sungdong South Korean shipyard. The price was $66 million, and this acquisition has also been 50% lease financed with Ocean Yield. The vessel was delivered to us April 28, 2025.
- On May 2nd, 2025, NAT entered into an agreement to sell the Nordic Castor (2004), at the price of $22.5 million net to us.
In summary:
Nordic American is in a strong position and is in one of the most active periods for years.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.
Contacts:
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391
Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 724 171
