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Hamilton, Bermuda, December 14, 2015
Dear shareholder,
It is good news for our platform supply vessels (PSV) in Nordic American Offshore that the short term spot market has improved in the last few weeks. All our ships operate in the spot market, where rates have hovered around $5,000 per day. As an example, this week we negotiated a rate for one of our PSVs about four times that level for a short voyage. There are fewer PSVs available right now because many of them have been laid-up given the market. Our modern and efficient ships have been operating all the time in this market.
We are always looking for bright spots on the horizon and this example of a strong improvement in rates is such a bright spot. It would be too optimistic to expect rates to continue to be this strong, but we welcome every contract we sign at these levels.
During the last few days I have personally bought about $500,000 worth of stock in NAO, which reflects my attitude about the company's prospects. Nordic American Tankers (NAT), where I am the Chairman and one of the largest shareholders, now owns about 26% of the shares in NAO, after NAT increased its holding from about 19% November 12, 2015.
Along with focus on dividend, it is a priority to ensure that NAO is in a solid financial position with low net debt.
I wish you all the best for Christmas and for the New Year!
Herbjorn Hansson
Executive Chairman
Nordic American Offshore Ltd.
Nordic American Offshore Ltd. press release
