In August 2017, we informed you about NAT time charter (TC) arrangements with Shell, ExxonMobil and other major oil companies both in the West and in the East. (see related news below)
The Company announced earlier today that it has entered into a 2-year contract with British Petroleum (BP). The minimum rate is well above Company’s 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 Company’s 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, the Company has shorter contracts with other major energy companies in the East and in the West.