NAT sings Suezmax praises

Nov 13 2015

Thanks to a cash breakeven rate below $12,000 per day per ship, an increasing Suezmax fleet and spot rates of about $35,000 per day per ship, Nordic American Tankers (NAT) produced an operating cash flow of $49.1 mill in 3Q15, the company said.

For the nine months ending 30^th September, 2015, NAT’s operating cash flow was $154.6 mill. For the full year 2014, operating cash flow was $77.7 mill, while in 2013, the operating cash flow was a negative $11.1 mill.

For the NAT fleet, it is not meaningful to compare quarter for quarter in a precise way, the company said. During the first three quarters of this year, the Suezmax spot tanker market was healthy. So far, the fourth quarter is progressing well with achieved spot rates above the average for the first three quarters of 2015, NAT said.

NAT has acquired two 2010 built Suezmaxes. The first was taken over by the company on 22^nd September, 2015 and the second ship was delivered on 29^th October, 2015 giving a fleet of 26 ships of which one newbuilding is due for delivery in 2016 and a second newbuilding in early 2017.

No equity offering is planned in conjunction with the addition of these four vessels.

During the last year, oil prices have decreased significantly, positively impacting Suezmax tanker rates.