|
Hamilton, Bermuda - August 23, 2017
Dear Shareholder,
In our message of August 9, 2017, we informed you about our time charter (TC) arrangements with Shell, ExxonMobil and other major oil companies both in the West and in the East. The TC arrangements are from three months to 18 months in duration. We are currently discussing additional TC arrangements with major oil interests worldwide.
Some of the agreements have special structures. There is an agreed minimum rate well above our cash break-even of $11,500 per day per ship with an upside in a rising market. As an example, if the whole NAT fleet is achieving average rates of $30,000 per day per ship, all things being equal, the cash surplus to NAT is expected to be in the region of $45 million per quarter. This is an indication of the potential earnings capacity of NAT.
The Chairman & CEO commented: "These balanced contracts give NAT a floor rate, which is well above our current cash break-even, and produce a solid cash surplus in a more buoyant market. My family is one of the largest shareholders of NAT and as a shareholder, we are very pleased with these arrangements".
Kind regards,
Herbjørn Hansson
Chairman & CEO
Nordic American Tankers Limited
Nordic American Tanker Shipping Ltd., press release