Nordic American Tankers Expanded Cooperation With A Key Client

By Vessels

Nordic American Tankers Ltd. (NYSE:NAT) announced that it has entered into a 30 months charter contract with a subsidiary of ExxonMobil (EM) for one of the NAT suezmaxes. The firm period is 18 months with an option of further 12 months. The gross revenue from the contract of 30 months is about $25 million, reflecting a time charter rate between $25,000 and $30,000 per day.

The charter is scheduled to commence in a few days. The cash breakeven level of NAT, including all G&A costs and financial items, is now about $11,000 per day per vessel, spread across 30 units.

Nordic American Tankers Expanded Cooperation With A Key Client

Crude oil tanker Nordic Zenith - Image courtesy: Konstantin K. / MyShip

This type of a solid employment base strengthens NAT and is sustaining our dividend distribution policy. This new contract supplements the contract of affreightment NAT already have with a subsidiary of EM.

Including the newbuildings to be delivered in August 2016 and in January 2017, from a Korean shipyard, and the four vessels recently acquired, the NAT suezmax fleet now stands at 30 units.

Commented the Chairman & CEO, Herbjørn Hansson: "The expanded cooperation secures increased flexibility and better customer service".

Mr. Hansson commented further: "At this time, we also change the name of our chartering department from Orion Tankers (which was initially established as a chartering pool with external participants) to NAT Chartering. All the suezmax tankers under our umbrella are now owned by NAT. We have no plans to invite other companies into the chartering arrangements of NAT. NAT Chartering is headed up by Erik Tomstad who is reporting to me".

NAT Chartering has been strengthened further with two persons who have relevant experience from London and Oslo. This is an indication that further expansion can be expected. Based on a fleet of 30 vessels, NAT do not plan to issue new equity.

Source: NAT