Net operating earnings was $5.4 mill for 4Q18 and the adjusted net operating earnings was $23.6 mill for the quarter. By comparison, in 3Q18, the adjusted net operating earnings were $2.1 mill and in 4Q17, the corresponding amount was $11.2 mill.
The TCE for NAT’s Suezmaxes in 4Q18 was $20,100 per day per ship, compared to just $12,000 in 3Q18.
By earlier this week, NAT had covered 70% of the income for 1Q19 at about $25.000 per day.
NAT’s fleet consists of 23 Suezmaxes. All the ships above 15 years of age has a CAP 1 class notation, which above all is related to steel quality, the company claimed.
The average age of the fleet is about 10,8 years; 10 tankers were built from 2010 onwards, while 13 were built between 2000 and 2009.
NAT’s existing revolving credit facility (RCF) syndicated by three banks was nearing its final year before maturity and would be classified as short term within 2019. During the last 18 months, NAT has reduced its RCF debt by about $150 mill and the remainder was taken care of by new $306 mill financing concluded on 12th February, 2019.
This $306 mill senior secured credit agreement is a five-year loan arranged by CSG Investments, and funded by Beal Bank of Dallas, Texas.
The new credit will mean an effective interest reduction compared to what was paid under the old RCF at the end of 2018. It is also lower than what was indicated for the Secured Bond NAT contemplated in 2018 and the Back-Stop facility that was cancelled in 3Q18.
The new loan will amortise over 20 years with full maturity after five years with annual down payments amounting to 5% of the original loan amount.
NAT said that the new financing plan will contribute to a competitive cash break-even rate. More importantly, it allows the company greater financial flexibility, it said.
With this new US based debt facility, together with the three 2018 newbuildings financed by a leasing arrangement with Ocean Yield, all long term financing is now in place , the company confirmed.