The company’s net operating earnings for 1Q17 were $5.1 mill, a significant fall from $33.6 mill recorded in 1Q16.
The company’s adjusted net operating earnings in 1Q17 were $30.5 mill, compared to $28.2 mill in 4Q16 and 55.9 mill in 1Q16.
Although the company reported a loss, NAT claimed it “…is in a solid financial position with a strong cash flow.”
The average daily TCE earned for the Suezmaxes in 1Q17 was $22,700 per day per vessel as against the previous quarter of $21,600 per day per vessel. Net voyage revenue stood at $55.2 mill in 1Q17, compared to $76.7 mill reported for 1Q16.
In late February, NAT took delivery of the newbuilding Suezmax ‘Nordic Space’ and expects to take delivery of three Suezmaxes ordered at Samsung Heavy Industries, in the second half of 2018. The company has 30 Suezmaxes in operation.
NAT said it had paid 30% of the total purchase and will finance the remaining 70%, which is due upon delivery of the ships, from cash on hand and increased debt.
The company said that 1Q17 was another good period in a volatile tanker market. NAT claimed to be financially strong and is committed to servicing its customers and shareholders well.
NAT said it had followed the same strategy for years and has well developed and very good financial control mechanisms in place.
The company still claims a cash break-even rate of about $11,500 per day per ship, including financial charges and G&A costs. The operating expenses for the vessels was said to be low - about $8,400 per vessel per day.
NAT has a credit facility of $500 mill, maturing in December, 2020 and is in compliance with the provisions under this facility. Net debt is currently $10.2 mill per vessel based on a 30 vessel fleet.
Going forward, NAT said it believed the recent acquisitions of vessels will increase the total return for its shareholders over time.