Nordic American Tankers Limited

03/09/2025 | Press release | Distributed by Public on 03/09/2025 20:21

EMERGING ECONOMIES. IN ADDITION, WE SEE GEO-POLITICAL DEVELOPMENTS THAT COULD MAKE MORE OIL VOLUMES AVAILABLE FOR THE NAT FLEET (Form 6-K)

EMERGING ECONOMIES. IN ADDITION, WE SEE GEO-POLITICAL DEVELOPMENTS THAT COULD MAKE MORE OIL VOLUMES AVAILABLE FOR THE NAT FLEET.
5.
THE AVERAGE TIME CHARTER EQUIVALENT (TCE) FOR THE NAT TIME CHARTER AND SPOT FLEET FOR THE SECOND QUARTER OF 2025 CAME IN AT $26,880 PER DAY PER SHIP. THIS PRODUCED AN ADJUSTED EBITDA OF $15.8 MILLION FOR THE SECOND QUARTER. INCLUDING THE SALE OF "NORDIC CASTOR" WE RECORDED A NET LOSS OF $0.9 MILLION FOR THE QUARTER. OUR CASH POSITION AS OF AUGUST 28 IS $86 MILLION.
6.
THE TOP QUALITY OF THE NAT VESSELS IS PROVEN BY THE VETTING PERFORMANCE UNDERTAKEN BY THE MAJOR OIL COMPANIES. THESE COMPANIES EMPLOY ABOUT 50% OF THE NAT FLEET. NAT HAS NOT CARRIED RUSSIAN OIL FOR MORE THAN THREE AND HALF YEARS.
7.
THANKS TO CAREFUL VOYAGE PLANNING AND ADJUSTMENT OF SPEED, WE REDUCE EMISSIONS OF OUR VESSELS.
SINCERELY,
HERBJØRN HANSSON
FOUNDER, CHAIRMAN & CEO
NORDIC AMERICAN TANKERS LTD
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Our Fleet
As of June 30, 2025, our fleet consisted of 20 well maintained Suezmax tankers with a cargo lifting capacity of 1 million barrels of oil each. We only have Suezmaxes in our fleet and the vast majority of our ships are built in South Korea.
We take extra care to maintain our vessels to the highest standards for the safety of crew, cargo and the environment. The outcome of the inspections of our ships by oil companies ("vetting") reflects the good quality and maintenance of our fleet.
NAT has one of the largest fleets of Suezmax tankers in the world. In a capital-intensive industry like ours, careful maintenance of our ships and the timing & financing of expansion are key elements to ensure both our financial stability and our commitment to paying cash dividends.
Results for the second quarter of 2025
The second quarter of 2025 saw fleet adjustments impacting our available trading days and affecting our income negatively. The primary reason being a busy scheduled dry-docking program as well as vessels leaving and entering our fleet during the quarter.
The second quarter of 2025 produced a Net loss of -$0.9 million, compared to the first quarter with a net profit of $4.2 million. The net income included a book profit for the sale of "Nordic Castor" of $7.1 million compared to a book profit for the sale of "Nordic Apollo" of $9.5 million in the first quarter.
The adjusted EBITDA for the second quarter came in at $15.8 million, a slight improvement from the first quarter with $14.9 million adjusted EBITDA.
Our financing and refinancing activities this year have all been done at improved terms, but with increased leverage, interest costs increased by about $1.9 million in the second quarter.
The average time charter equivalent (TCE) for our fleet during the second quarter of 2025 came in at $26,880 per day per vessel versus $24,714 per day per ship in the first quarter of 2025. These numbers are on a discharge-to-discharge basis. We currently have fourteen of our twenty vessels in the spot market.
For detailed information about our statement of operations (P&L), balance sheet, cash flow and reconciliation of certain non-GAAP financial measures, we refer to tables on page 5 and 6 of this press release.
Financing
Our Net Debt (total liabilities, less current assets) stood at $321.4 million, which equals $16.1 million per ship based on 20 vessels, as of June 30, 2025.
The details of our two financing arrangements are as follows;

1)
The $150 million five-year Senior Secured Credit agreement with CLMG/Beal Bank dated 6th February 2025 had a total outstanding balance of $146.9 million as of June 30, 2025, including current portion of the debt. The loan is secured in 7 of our suezmax tankers.

2)
The 8 vessels financed through Ocean Yield had as of June 30, 2025, a total outstanding balance of $299.4 million, including current portion of the debt. During the second quarter we refinanced and increased the loan amount on the three 2018-built vessels through Ocean Yield as well as financed 50% of the purchase price with Ocean Yield of the "Nordic Moon" and "Nordic Galaxy" acquisitions.

3)
The remaining 5 of our 20 suezmax tankers are debt free and unencumbered.
2

As of June 30, 2025, the current portion of long-term debt was $35.4 million net of transaction costs. $28.0 million was related to the Ocean Yield financing and $7.4 million was related to the Beal/CLMG financing.
We have not utilized any ATM offerings in 2025.
For the second quarter of 2025 a cash dividend of 10 cent ($0.10) per share has been declared. This is our 112th consecutive quarterly dividend declaration.
Payment of the dividend will be on September 29, 2025, to shareholders of record on September 12, 2025.
World Economy and the Tanker Market
There is no shortage of geopolitical uncertainty, but we continue to see high demand for oil and oil transportation, especially for emerging economies that continue to have energy consumption per capita that is significantly lower than that of OECD-countries. Should the geopolitical tensions ease, more oil volume should become available in our market and the continued increased production from OPEC members is an important trend that is very favorable for the tanker market going forward. These are interesting dynamics for the NAT oil tankers. Seasonal variations will occur, but as we have seen so far, these last years, the trend supports future earnings at higher levels than in the past.
NAT in particular stands to benefit from the fact that the supply of Suezmax tankers is not historically excessive. Environmental regulations, increased steel and production costs, and higher interest rates make investing in new ships quite challenging.
The world's Suezmax fleet (excl. shuttle, product & Jones Act tankers) counted 594 vessels as of June 30, 2025.
The ordering activity in the second quarter of 2025 increased, and the orderbook for new Suezmax tankers now stands at 108 vessels to be delivered over the next 4 years. This is 18% of the existing world fleet for Suezmax tankers. To put this in perspective, before the end of 2027, there are now 167 conventional suezmax tankers that will turn 20 years of age, or older. In the same period, only 90 new vessels will be delivered into the world suezmax fleet.
The world suezmax fleet will see 13 new vessels added to the fleet for the rest of 2025, 36 in 2026, 41 in 2027 and 18 newbuild orders are booked for 2028.
The available shipyard capacity for large oil tankers is low and leaving limited capacity to build additional Suezmax tankers with quality yards on this side of 2027.
All the above is good news for the short- and long-term outlook for our tankers. It is anticipated that the tanker markets will continue to be strong in the coming years.
The supply of tanker tonnage is inelastic in the short term. When there are too many ships in an area, rates tend to go down. When there is scarcity of ships, rates tend to go up. Short-term spot tanker rates may be expected to be volatile.
Corporate Governance/Conflict of Interests
It is vital to ensure that there is no conflict of interest among shareholders, management, affiliates and related parties. Interests must be aligned. From time to time in the shipping industry, we see that questionable transactions take place which are not in harmony with sound corporate governance principles, both as to transparency and related party aspects. We have zero tolerance for corruption.
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Strategy Going Forward
The NAT strategy is built on expanding and maintaining a homogenous and top-quality fleet, leveraging on our industry network and close customer relationships with major oil companies and oil traders.
We are a dividend company with the objective of having a strong balance sheet and low G&A costs, enabling us to distribute free cash flows to our shareholders.
In an improved market, higher dividends can be expected.
Our fleet of 20 more or less identical vessels is a special feature of NAT that is particularly valuable to our customers.
NAT is firmly committed to protecting its underlying earnings and dividend potential. We shall safeguard and further strengthen this position in a deliberate, predictable and transparent way.
* * * * *
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NORDIC AMERICAN TANKERS LIMITED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATION (UNAUDITED)
Three Months Ended
Six Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun 30, 2024
Amounts in USD '000
Net Voyage Revenue
40,153
37,945
66,099
78,098
126,671
Vessel Operating Expenses
(18,375
)
(16,503
)
(16,810
)
(34,878
)
(32,329
)
Depreciation Expenses
(14,969
)
(13,246
)
(13,935
)
(28,215
)
(28,071
)
General and Administrative Expenses
(6,375
)
(6,848
)
(6,080
)
(13,223
)
(13,934
)
Gain on Disposal of Vessels
7,117
9,504
0
16,621
0
Operating Expenses
(32,602
)
(27,093
)
(36,825
)
(59,695
)
(74,334
)
Net Operating Income
7,551
10,852
29,274
18,403
52,337
Interest Income
400
489
240
889
427
Interest Expense
(9,239
)
(7,359
)
(7,865
)
(16,598
)
(15,916
)
Other Financial Income (Expenses)
436
264
(43
)
700
(186
)
Total Other Expenses
(8,403
)
(6,606
)
(7,668
)
(15,009
)
(15,675
)
Net Income (Loss)
(852
)
4,246
21,606
3,394
36,662
Basic and Diluted Earnings per Share
(0.00
)
0.02
0.10
0.02
0.17
Weighted Average Number of Common Shares Outstanding
211,750,663
211,750,663
208,796,444
211,750,663
208,796,444
Common Shares Outstanding
211,750,663
211,750,663
208,796,444
211,750,663
208,796,444

CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
Amounts in USD '000
Jun. 30, 2025
Dec. 31, 2024
Cash and Cash Equivalents
94,490
39,177
Restricted Cash
0
5,207
Accounts Receivable, Net
14,499
16,223
Prepaid Expenses
7,815
6,227
Inventory
19,081
21,931
Voyages in Progress
8,912
6,570
Other Current Assets
6,136
3,436
Total Current Assets
150,933
98,771
Vessels, Net
803,076
715,273
Other Non-Current Assets
3,383
3,543
Total Non-Current Assets
806,459
718,816
Total Assets
957,392
817,587
Accounts Payable
5,338
4,257
Accrued Voyage Expenses
12,240
12,294
Other Current Liabilities
11,715
13,204
Dividends Payable
0
8,470
Current Portion of Long Term Debt
35,412
21,560
Total Current liabilities
64,705
59,785
Long-Term Debt
406,889
248,144
Other Non-Current Liabilities
751
845
Total Non-current Liabilities
407,640
248,989
Shareholders' Equity
485,047
508,813
Total Liabilities and Shareholders' Equity
957,392
817,587

5


NORDIC AMERICAN TANKERS LIMITED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)
Six Months Ended
Twelve Months Ended
Jun. 30, 2025
Dec. 31, 2024
Amounts in USD '000
Net Cash Provided by (Used In) Operating Activities
525
124,611
Investment in Vessels
(135,656
)
(870
)
Deposit on Vessel Financing
0
0
Proceeds from Sale of Vessels
46,751
0
Investment in Other Fixed Assets
0
(1,750
)
Net Cash Provided By (Used In) Investing Activities
(88,905
)
(2,620
)
Proceeds from Issuance of Common Stock
0
8,932
Proceeds from Borrowing Facility
190,131
0
Repayments of Vessel Financing
(11,788
)
(20,662
)
Repayment of Borrowing Facility
(4,132
)
(12,079
)
Dividends Distributed
(35,998
)
(87,695
)
Net Cash Provided By (Used In) Financing Activities
138,213
(111,504
)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
49,833
10,487
Effect of exchange rate changes on Cash
273
536
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
44,384
33,361
Cash, Cash Equivalents and Restricted Cash at End of Period
94,490
44,384
Cash and Cash Equivalents
94,490
39,177
Restricted Cash
0
5,207


NORDIC AMERICAN TANKERS LIMITED
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
Three Months Ended
Six Months Ended
Amounts in USD '000
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Voyage Revenue
66,728
64,790
97,808
131,518
193,096
Voyage Expense
(26,575
)
(26,846
)
(31,709
)
(53,421
)
(66,425
)
Net Voyage Revenue (1)
40,153
37,944
66,099
78,097
126,671

Three Months Ended
Twelve Months Ended
Amounts in USD '000
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Dec. 31, 2024
Net Income (Loss)
(852
)
4,246
21,606
46,643
Interest Expense (Income), net
8,839
6,870
7,625
30,008
Depreciation Expense
14,969
13,246
13,935
56,151
EBITDA (2)
22,955
24,362
43,166
132,802
(Gain) on Disposal of Vessel
(7,117
)
(9,504
)
0
0
ADJUSTED EBITDA
15,838
14,858
43,166
132,802

(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)
Earnings before interest, taxes, depreciation and amortization (or 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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