Nordic American Tankers (NAT) announced yesterday (May30) that one of Company’s Samsung-built Suezmaxes, the Nordic Zenith, has obtained a term contract. The new contract is expected to commence on expiration of the present spot employment and it could last 12 to 15 months.

Nordic American Tankers fixes one year or more time charter for one of its Suezmax vessels
Caption: Crude oil tanker Nordic Zenith - Image courtesy of Cengiz Tokgöz

The charterer is Equinor, an energy company headquartered in Norway.  Equinor is a major stock-listed company and one of the largest of its type worldwide. Last year, NAT entered into a term contract with the same user for a period minimum of 3 years.  

Over the years, NAT has bought several vessels built at Samsung Shipyard in South Korea, including the Nordic Zenith. The vessels of NAT consist of Suezmaxes.  The NAT fleet is trading all over the world. The contract has a value between USD 9 mill and USD 11 mill depending upon the detailed scheduling of the vessel. The contract is producing positive cashflow and earnings for NAT, cementing the relationship with Equinor.

“Major energy and gas companies, including oil traders both in the West and the East, are prioritized customer groups for NAT.   

Going forward, we sense a strong upward trend for the tanker industry.  NAT is in a positive phase of development. Historically, all contracts of the tanker industry and of the NAT fleet (now 23 vessels), over a certain length, as a standard need the approval of the technical management arrangement associated with all our contracts. At this time almost all NAT vessels are trading in the spot market. “ - NAT

Source: NAT