Chairman, President, and Chief Executive Officer
| ||
Fleet value going up
1 |
Normally, a set-back in oil demand is followed by a forceful rebound. We are now at a positive turning point for the NAT vessels. Production of oil goes up following increased oil demand. The upward move in the price of oil, in raw materials such as steel and copper has increased the value of our fleet by more than $100 million over the last few months. This strengthens NAT which has an expansionary perspective.
|
2 |
We believe that the global economy is poised to enjoy a robust growth going forward. This is good for the NAT business.
|
3 |
As seen in the past, small events can turn the market in our favor. The closure of the Suez Canal a few days during the first quarter served as a reminder of how finely balanced the market is. One ship too many pushes freight rates lower and one ship too few does the opposite.
|
4 |
Despite OPEC oil production cuts during 1Q 2021, the average time charter equivalent (TCE) came in at $9,400 per day per ship - an improvement on the previous quarter that gave a TCE of $8,700 per day per ship. Except for one, all our ships are working on short term contracts. An upswing in demand will immediately increase the NAT results. The operating costs per ship are about USD 8,000 per day.
|
5 |
the first quarter of 2021 produced a net loss of $25.0 million or an earning per share (EPS) of -$0.16. this compares to the previous quarter, that produced an EPS of -$0.19. Consequently, there was a small improvement in 1Q 2021 compared to 4Q 2020.
|
6 |
Payment of dividend is a priority for NAT. The dividend for 1Q2021 is 2 cents ($0.02) per share, payable on Friday June 18, 2021, to shareholders on record Friday June 4, 2021. This is our 95th consecutive quarterly dividend payment. When earnings improve, higher dividends can be expected.
|
7 |
The Founder, Chairman and CEO and his son Alexander are between them the second largest shareholder in the company.
|
8 |
Our industry network and close customer relationships with major oil companies and traders are based on trust, fleet quality and on our people. The Quality of our fleet is proven by the technical 'vetting' - inspections undertaken by those who lease the vessels. NAT has sound corporate governance principles. The Company has zero tolerance for corruption.
|
9 |
detailed financial information for the first quarter of 2021 and for other periods is included later in this report.
|
1) |
The total outstanding balance to CLMG/Beal Bank (including current portion of the debt), is $249.7million as of March 31, 2021. Restricted cash of $4.0 million is related to deposits held for future Drydockings of our vessels, in accordance with our borrowing agreement.
|
2) |
The total outstanding balance to Ocean Yield (including current portion of the debt) is $110.3 million as of March 31, 2021.
|
NORDIC AMERICAN TANKERS LIMITED
| ||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATION (UNAUDITED) |
Three Months Ended
|
Twelve Months Ended
| ||||||||||||||
Mar. 31, 2021
|
Dec. 31, 2020
|
Mar. 31, 2020
|
Dec. 31, 2020
| |||||||||||||
Amounts in USD '000
| ||||||||||||||||
Net Voyage Revenue
|
18,811
|
16,293
|
86,179
|
233,530
| ||||||||||||
Vessel Operating Expenses
|
(16,450
|
)
|
(16,684
|
)
|
(16,981
|
)
|
(66,883
|
)
| ||||||||
General and Administrative Expenses
|
(3,664
|
)
|
(4,888
|
)
|
(4,483
|
)
|
(17,586
|
)
| ||||||||
Depreciation Expenses
|
(17,077
|
)
|
(17,042
|
)
|
(17,084
|
)
|
(67,834
|
)
| ||||||||
Operating Expenses
|
(37,191
|
)
|
(38,614
|
)
|
(38,548
|
)
|
(152,303
|
)
| ||||||||
Net Operating Income (Loss)
|
(18,380
|
)
|
(22,321
|
)
|
47,631
|
81,227
| ||||||||||
Interest Income
|
0
|
0
|
92
|
96
| ||||||||||||
Interest Expense
|
(6,678
|
)
|
(6,526
|
)
|
(8,404
|
)
|
(31,481
|
)
| ||||||||
Other Financial Income (Expenses)
|
28
|
184
|
230
|
191
| ||||||||||||
Total Other Expenses
|
(6,650
|
)
|
(6,342
|
)
|
(8,082
|
)
|
(31,194
|
)
| ||||||||
Net Income (Loss)
|
(25,030
|
)
|
(28,663
|
)
|
39,549
|
50,033
| ||||||||||
Basic and Diluted Earnings (Loss) per Share
|
(0.16
|
)
|
(0.19
|
)
|
0.27
|
0.34
| ||||||||||
Weighted Average Number of Common Shares Outstanding
|
151,856,939
|
151,121,043
|
147,230,634
|
149,292,586
| ||||||||||||
Common Shares Outstanding
|
153,318,987
|
151,446,112
|
147,230,634
|
151,446,112
|
CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
|
Mar. 31, 2021
|
Dec. 31, 2020
| ||||||
Amounts in USD '000
| ||||||||
Cash and Cash Equivalents
|
38,329
|
57,847
| ||||||
Restricted Cash
|
3,991
|
4,223
| ||||||
Accounts Receivable, Net
|
7,595
|
6,349
| ||||||
Prepaid Expenses
|
6,828
|
5,477
| ||||||
Inventory
|
23,783
|
19,408
| ||||||
Voyages in Progress
|
7,251
|
4,644
| ||||||
Other Current Assets
|
1,809
|
1,574
| ||||||
Total current assets
|
89,586
|
99,522
| ||||||
Vessels, Net
|
844,476
|
861,342
| ||||||
Vessels under Construction
|
11,378
|
11,000
| ||||||
Other Non-Current Assets
|
3,948
|
2,483
| ||||||
Total Non-Current Assets
|
859,802
|
874,825
| ||||||
Total Assets
|
949,388
|
974,347
| ||||||
Accounts Payable
|
2,011
|
4,099
| ||||||
Accrued Voyage Expenses
|
11,154
|
5,254
| ||||||
Other Current Liabilities
|
6,953
|
8,232
| ||||||
Current Portion of Long Term Debt
|
22,183
|
22,094
| ||||||
Total Current liabilities
|
42,301
|
39,679
| ||||||
Long-Term Debt
|
329,064
|
334,615
| ||||||
Other Non-Current Liabilities
|
859
|
927
| ||||||
Total Non-current Liabilities
|
329,923
|
335,542
| ||||||
Shareholders' Equity
|
577,164
|
599,126
| ||||||
Total Liabilities and Shareholders' Equity
|
949,388
|
974,347
|
NORDIC AMERICAN TANKERS LIMITED
| ||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED) |
Three Months Ended
|
Twelve Months Ended
| ||||||
Mar. 31, 2021
|
Dec. 31, 2020
| |||||||
Amounts in USD '000
| ||||||||
Net Cash Provided by Operating Activities
|
(14,643
|
)
|
110,944
| |||||
Investment in Vessels
|
(141
|
)
|
(6,845
|
)
| ||||
Investment in Other Fixed Assets
|
(553
|
)
|
(233
|
)
| ||||
Investment in Vessels under Construction
|
(378
|
)
|
(11,000
|
)
| ||||
Proceeds from Sale of Investment Securities
|
0
|
602
| ||||||
Net Cash Used in Investing Activities
|
(1,072
|
)
|
(17,476
|
)
| ||||
Proceeds from Issuance of Common Stock
|
6,188
|
20,713
| ||||||
Proceeds from Borrowing Activities
|
0
|
29,300
| ||||||
Repayments of Vessel Financing
|
(1,925
|
)
|
(7,630
|
)
| ||||
Repayment of Borrowing Facility
|
(4,202
|
)
|
(67,896
|
)
| ||||
Financing Transaction Costs
|
(1,100
|
)
|
(320
|
)
| ||||
Dividends Distributed
|
(3,047
|
)
|
(67,242
|
)
| ||||
Net Cash Used in Financing Activities
|
(4,086
|
)
|
(93,075
|
)
| ||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
(19,801
|
)
|
393
| |||||
Effect of exchange rate changes on Cash
|
51
|
39
| ||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
62,070
|
61,638
| ||||||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
42,320
|
62,070
| ||||||
Cash and Cash Equivalents
|
38,329
|
57,847
| ||||||
Restricted Cash
|
3,991
|
4,223
|
NORDIC AMERICAN TANKERS LIMITED
| ||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
|
Three Months Ended
|
Twelve Months Ended
| ||||||||||||||
Amounts in USD '000
|
Mar. 31, 2021
|
Dec. 31, 2020
|
Mar. 31, 2020
|
Dec. 31, 2020
| ||||||||||||
Voyage Revenue
|
47,999
|
43,841
|
132,145
|
354,619
| ||||||||||||
Voyage Expense
|
(29,188
|
)
|
(27,548
|
)
|
(45,966
|
)
|
(121,089
|
)
| ||||||||
Net Voyage Revenue (1)
|
18,811
|
16,293
|
86,179
|
233,530
| ||||||||||||
Three Months Ended
|
Twelve Months Ended
| |||||||||||||||
Amounts in USD '000
|
Mar. 31, 2021
|
Dec. 31, 2020
|
Mar. 31, 2020
|
Dec. 31, 2020
| ||||||||||||
Net Income (Loss)
|
(25,030
|
)
|
(28,663
|
)
|
39,549
|
50,033
| ||||||||||
Interest Expense
|
6,678
|
6,526
|
8,404
|
31,481
| ||||||||||||
Interest Income
|
0
|
0
|
(92
|
)
|
(96
|
)
| ||||||||||
Depreciation Expense
|
17,077
|
17,042
|
17,084
|
67,834
| ||||||||||||
EBITDA (2)
|
(1,275
|
)
|
(5,095
|
)
|
64,945
|
149,252
|
(1) |
Net voyage revenues represents voyage revenues less voyage expenses such as bunker fuel, port fees, canal tolls and brokerage commissions. Net voyage revenues is included because certain investors use this data to measure a shipping company's financial performance. Net voyage revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.
|
(2) |
EBITDA is included because certain investors use this data to measure a shipping company's financial performance. EBITDA is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.
|
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Nordic American Tankers Limited published this content on 26 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2021 17:28:06 UTC.