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Non-Tech
Nordic American Tankers (NAT)

An SI Board Since September 2000

Posts	SubjectMarks	Bans	Symbol
52	9	0	NAT

Emcee: The Barracuda™	Type: Unmoderated

Introduction Market Data Compact

The oil markets have a logistical bottle neck-oil tankers.

Oil located in the Middle East is of no value unless it can be moved to market. There is currently a shortage of tanker capacity, which is causing tanker charter rates to rise.

Due to environmental and safety regulations, about 10-20% of the world's tanker capacity is being retired/yr. There are currently about 3200 tankers worldwide. Approximately 400 of the 3200 tankers are VLCC's and ULCC's

It is my belief that the world's shipyards will not be able to replace 320 tankers/yr.

Investors Business Daily has given NAT a top rating. I agree.

This URL gives tanker info such as charter rates, new building etc.

maritimedirect.com

Facts

NAT was incorporated in 1995.
NAT owns 3 suezmax tankers (150 000 dwt), “British Hawk”, “British Hunter” and “British Harrier”, all on charter to BP Shipping until September 2004. BP has an option to prolong the charter by 7 x 1 year.
BP Amoco Plc guarantees the charters.
NAT is paying dividend to its shareholders on a quarterly basis. The minimum guaranteed annual dividend until 2004 is USD 1.35 per share. If the timecharter equivalent for suezmax tankers is above an average of USD 22,000 per day during a quarter – the dividend will increase correspondingly.
NAT receives a minimum of USD 22,000/day per vessel on a timecharter basis from BP. If the market for suezmax tankers is above USD 22,000, based on an agreed formula and specific trades, NAT will receive additional charter hire from BP. The additional revenue is being calculated and paid in arrears. NAT will distribute all excess earnings to the company’s shareholders.
If the market for suezmax tankers is less than USD 22,000/day, NAT will still receive the minimum timecharter equivalent of USD 22,000.
No off-hire risk. The vessels receive hire 365 days a year.
No management risk or costly administration. Ugland Nordic Shipping ASA is the commercial manager of NAT.
Fixed interest costs on loan.
NAT is listed on the stock exchanges in New York (AMEX) and Oslo (Oslo Stock Exchange) – ticker code ”NAT”.
Outstanding number of shares is 9.706.606.
Company history

NAT was incorporated in 1995 under the laws of the Island of Bermuda. In September of 1995 the company offered and sold 11,731,613 warrants to the public at an offering price of USD 5.00 per warrant. Exercise price was USD 10.21 per warrant and these were exercised on September 30th 1997. The proceeds were utilised to acquire 3 suezmax tankers built at Samsung Heavy Industries Co. Ltd. The 3 vessels, "British Hawk", British Hunter" and "British Harrier", were all delivered during the autumn of 1997 and commenced their charter to BP Shipping (BP) immediately after delivery.

The charter party with BP is valid until September 2004 with a further seven one-year options in BP's favour. The contract ensures that the ships receive a minimum rate of USD 22,000 per day per ship on a time charter basis, but in periods when the tanker market is stronger the company will receive the market rate. The market rate is calculated quarterly in arrears on the basis of a formula set out in the contract. If the market is below USD 22,000 per day, NAT will still receive the minimum rate of USD 22,000.

Based on this rate structure, NAT is paying dividend to its shareholders every quarter. The base hire (USD 22,000/day) is being paid in advance and any additional hire is being paid in arrears. The minimum annual dividend based on the minimum rate is USD 1.35 per share. If there are payments of additional hire in excess of the timecharter equivalent of USD 22,000 per day, the shareholders will receive additional dividend.

Since the commencement of the BP contracts,
NAT has made the following dividend payments to its shareholders:

4. quarter 1997 USD 0.30 per share
1. quarter 1998 USD 0.40 per share
2. quarter 1998 USD 0.41 per share
3. quarter 1998 USD 0.32 per share
4. quarter 1998 USD 0.30 per share
1. quarter 1999 USD 0.32 per share
2. quarter 1999 USD 0.35 per share
3. quarter 1999 USD 0.35 per share
4. quarter 1999 USD 0.36 per share
1. quarter 2000 USD 0.34 per share
2. quarter 2000 USD 0.45 per share

In November 1998, the shareholders of NAT voted in favour of the company taking up a loan of USD 30 mill in order to repurchase shares through a tender offer. During this process the company repurchased 2,107,244 shares at a price of USD 12.50 per share. After the repurchase of shares there are 9,706,606 NAT-shares in issue.

Ugland Nordic Shipping ASA (UNS) is serving as the manager of NAT and provides certain management, administrative and advisory services to the company. UNS owns 22,8% of the company.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
52	8/21/2025 "Nordic American Tankers (NAT), is yet to report results for the	Stock Puppy	-	August 21
51	If I remember correctly, tankers command higher day rates during political unres	Night Writer	-	6/13/2019
50	I have held a position in the past, I may again. Drudge today says two Tankers w	Simprofié	-	6/13/2019
49	Does anyone follow this beat down tanker stock?	Night Writer	-	4/3/2019
48	Hamilton, Bermuda, January 13, 2016 The Board of Nordic American Tankers Limite	ortega	-	1/17/2016
47	'There has been a tripling in the average rates in the past 10 days, and eve	Lahcim Leinad	-	10/12/2011
46	Suezmax rates today are back above $30k/day, which is about average for the past	Lahcim Leinad	-	10/12/2011
45	Shipping may be “relatively close” to a bottom, Wilbur Ross, the billionaire cha	Lahcim Leinad	-	10/10/2011
44	At today's rates, given NAT's stated $11,000/day/tanker break even, pr	Lahcim Leinad	-	10/10/2011
43	In the last week, suezmax rates nearly doubled. Intertanko	Lahcim Leinad	-	10/10/2011
42	Suezmax Tanker Time Charter Rates Charles R. Weber Company, Inc.	Lahcim Leinad	-	10/6/2011
41	Intertanko - Suezm 130' m ts WAFR–USAC $/day rates. NAT breaks even @ $11k/	Lahcim Leinad	-	10/5/2011
40	NORDIC AMERICAN TANKERS LIMITED (NYSE:NAT) - A DIFFERENT COMPANY WITH A STRONG B	Lahcim Leinad	-	10/5/2011
39	This healthy baby has been tossed out with the rest of the failing tanker compan	Lahcim Leinad	-	10/4/2011
38	Laser–Machine Gun Mashup Tested on ‘Pirate Ships’ \| Danger Room \| Wired.com	Lahcim Leinad	-	9/1/2011
37	Chairman & CEO Herbjørn Hansson interviewed on CNBC, August 8, 2011: N	Lahcim Leinad	-	8/10/2011
36	NORDIC AMERICAN TANKER'S 2Q2011 REPORT. DIVIDEND IN 2Q2011 THE SAME AS IN 1	Lahcim Leinad	-	8/8/2011
35	Increased Fleet and Increased Dividend/Earnings Capacity. marketwatch.com	Lahcim Leinad	-	7/30/2011
34	Nordic American Tanker Shipping (NAT) Downgraded by Zacks Investment Research to	Lahcim Leinad	-	4/15/2011
33	Libyan troubles lift tanker demand Oil-consuming countries’ shift to using oil	Lahcim Leinad	-	4/3/2011
32	Below are the top five most-efficient companies in the Oil & Gas Storage &am	Lahcim Leinad	-	4/3/2011
31	Nordic American Tanker Shipping Ltd. (NYSE: NAT) Letter to Shareholders From the	Lahcim Leinad	-	3/21/2011
30	I started a new thread for all shippers: tankers, dry cargo & LNG. I thought	AurumRabosa	-	1/29/2007
29	I see Kramer is saying to avoid the tankers because he thinks a glut of new ship	AurumRabosa	-	1/29/2007
28	Yahoo has screwed up their message boards, so wondering if this might be a place	Steve Pick	-	7/20/2006

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