Hamilton, Bermuda, June 18, 2018
To shareholders and investors,
In the course of the last nine months, the financial position of NAT has changed much to the better. It is worth noting that the expected improvement in the tanker market is becoming clearer. We also brought this up in our February 2018 report.
We have now decided that it is not in the best interest of NAT shareholders to conduct a bond offering.
NAT has financial flexibility through a large suezmax fleet and a long standing cooperation with our customers; oil and energy companies, including oil traders.
Our lending and investment banks in the US and Europe play key roles in NAT. The debt per ship of NAT is low – below the scrap value of each ship.
When conditions change, it is the NAT policy to retain its expansionary business model that has been rewarding over many years. Over time expansion is the objective. However, sales and acquisitions of vessels do not necessarily take place at the same time. It can be expected that NAT will immediately reap the benefits of an upswing in the tanker market. Going forward, dividend is an important element of the NAT strategy.
Nordic American Tanker Shipping Ltd., press release