Hamilton, Bermuda - September 5, 2017
In our message of August 23 and earlier in August 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. We are pleased to inform you that we now have entered into a 2 year contract with British Petroleum (BP). The minimum rate is well above our cash break-even level with an index linked formula providing for upside potential to NAT. Commencement is mid September; i.e. in about 10 days.
As an example of the income potential of NAT, if our fleet is achieving about $30,000 per day spread across all the NAT vessels, the dividend potential could be about $2 per share per year. In the past, on occasions, the tanker market has been much higher than that.
NAT has now five vessels on longer term contracts with major oil companies worldwide. In addition, we have shorter contracts with other major energy companies in the East and in the West. The contracts with big oil, such as Shell, BP and ExxonMobil, are examples of the confidence customers have in NAT and in our fleet of Suezmax vessels.
Chairman & CEO
Nordic American Tankers Limited
Nordic American Tanker Shipping Ltd., press release