NAT Nordic American Tankers Limited

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of  December 2024

Commission File Number: 001-13944

NORDIC AMERICAN TANKERS LIMITED

(Translation of registrant’s name into English)

 

Swan building, 26 Victoria Street, Hamilton, HM12, Bermuda

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached as Exhibit 1 is a press release of Nordic American Tankers Limited (the "Company") dated November 29, 2024, announcing the Company’s dividend and earnings report for the third quarter of 2024.

The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company’s Registration Statement on Form F-3 (File No. 333-261630), filed with the U.S. Securities and Exchange Commission with an effective date of February 14, 2022.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Nordic American Tankers Limited (NYSE: NAT) – Report as per September 30, 2024 – Prospects for our Suezmax tankers are good

Friday, November 29, 2024

Highlights: 

The international profile of NAT is reflected in the fact that during the last five years our ships have loaded & discharged in 68 countries. Ninety day periods offer a short-term snapshot of a company. However, it is more constructive to view the longer-term picture. The direction of NAT is unquestionably upwards, and there is room for profitable growth.

6.

Through careful voyage planning and adjustment of speed of our vessels, we reduce emissions. It is a fact that each individual ship in the NAT fleet is of excellent technical condition, as demonstrated in the vetting performance, the score card undertaken by our customers. Most of our business is with major oil and energy companies.

Sincerely,

Herbjørn Hansson

founder, Chairman & CEO

Nordic American Tankers Ltd

Our Fleet

As of September 30, 2024, 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.

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”) reflect 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 third quarter of 2024

For the third quarter of 2024, the net income was $8.7 million or an EPS of $0.04.

The average time charter equivalent (TCE) for our fleet during the third quarter of 2024 came in at $30,656 per day per ship. This number is on a discharge-to-discharge basis. We currently have fifteen 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 the tables on page 4 and 5 of this press release.

Financing

Our Net Debt (total liabilities less current assets) stood at $223 million, which equals $11.1 million per ship based on 20 vessels, as of September 30, 2024.

The details of our financing arrangements are as follows;

Current portion of long-term debt is now $95.9 million net of transaction costs. $20.5 million is related to the Ocean Yield financing and $75.4 million is related to the Beal/CLMG financing. Restricted cash of $8.3 million is related to deposits held for future drydocking’s of our vessels.

For the third quarter of 2024 a cash dividend of 4 cent ($0.04) per share has been declared. This is our 109^th consecutive quarterly dividend.

Payment of the dividend will be on January 16, 2025, to shareholders of record on December 17, 2024.  

World Economy and the Tanker Market

The world is not short of political uncertainty, and we do not see this going away anytime soon. We see high demand for oil, a fragmented trade picture with logistical inefficiencies and a tight supply of ships. The limited supply of new ships is maybe the most important factor pointing to tight supply/demand balance for several years. Seasonal variations will occur, but as we have seen over the last 18 months, the trend supports earnings at higher levels than in the past.

NAT in particular stands to benefit from the fact that the supply of Suezmax tankers will remain muted for at least the next two or three years. Environmental regulations, increased 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 581 vessels as of September 30, 2024, flat from the previous two quarters. The 3^rd quarter 2024 saw a marginal increase in the orderbook for Suezmax tankers that now count 100 vessels to be delivered over the next 4 years. To put this in perspective, by the end of this year, 102 suezmax tankers will be above 20 years of age, matching the current orderbook for new ships.

Only four new vessels remain to enter the world suezmax fleet in 2024, 26 in 2025, 34 in 2026, 32 in 2027 and so far, 4 newbuild orders are booked for 2028.

All of the above are good news for the short- and long-term outlook for our tankers. It is anticipated that the tanker markets will continue 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 interests 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.

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.

* * * * *

CONSOLIDATED CONDENSED STATEMENTS OF OPERATION (UNAUDITED)		Three Months Ended												Nine Months Ended
		Sept. 30, 2024				Jun. 30, 2024				Sept. 30, 2023				Sept. 30, 2024				Sept. 30, 2023
Amounts in USD '000
Net Voyage Revenue			52,036				66,099				48,036				178,707				202,927
Vessel Operating Expenses			(15,772	)			(16,810	)			(14,607	)			(48,101	)			(44,483	)
Depreciation Expenses			(14,210	)			(13,935	)			(12,669	)			(42,281	)			(38,119	)
General and Administrative Expenses			(5,834	)			(6,080	)			(6,292	)			(19,768	)			(17,034	)
Operating Expenses			(35,816	)			(36,825	)			(33,568	)			(110,150	)			(99,636	)
Net Operating Income			16,220				29,274				14,468				68,557				103,291
Interest Income			173				240				604				600				1,260
Interest Expense			(7,726	)			(7,865	)			(7,556	)			(23,642	)			(23,294	)
Other Financial Income (Expenses)			19				(43	)			(29	)			(167	)			(49	)
Total Other Expenses			(7,534	)			(7,668	)			(6,981	)			(23,209	)			(22,083	)
Net Income			8,686				21,606				7,487				45,348				81,208
Basic and Diluted Earnings per Share			0.04				0.10				0.04				0.22				0.39
Weighted Average Number of Common Shares Outstanding			208,796,444				208,796,444				208,796,444				208,796,444				208,796,444
Common Shares Outstanding			208,796,444				208,796,444				208,796,444				208,796,444				208,796,444

CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
Amounts in USD '000		Sept. 30, 2024				Dec. 31, 2023
Cash and Cash Equivalents			40,498				31,078
Restricted Cash			8,338				2,283
Accounts Receivable, Net			20,122				26,287
Prepaid Expenses			4,551				4,319
Inventory			24,085				31,183
Voyages in Progress			7,382				11,178
Other Current Assets			1,735				2,582
Total Current Assets			106,711				108,910
Vessels, Net			729,262				768,584
Other Non-Current Assets			3,859				1,702
Total Non-Current Assets			733,121				770,286
Total Assets			839,832				879,196
Accounts Payable			5,475				3,446
Accrued Voyage Expenses			10,984				11,748
Other Current Liabilities			9,004				10,858
Dividends Payable			25,056				12,528
Current Portion of Long Term Debt			95,923				31,898
Total Current liabilities			146,442				70,478
Long-Term Debt			181,825				269,697
Other Non-Current Liabilities			1,422				717
Total Non-current Liabilities			183,247				270,414
Shareholders' Equity			510,143				538,304
Total Liabilities and Shareholders' Equity			839,832				879,196

NORDIC AMERICAN TANKERS LIMITED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)
		Nine Months Ended				Twelve Months Ended
Amounts in USD '000		Sept. 30, 2024				Dec. 31, 2023
Net Cash Provided by Operating Activities			105,173				139,445
Investment in Vessels			(784	)			(73,526	)
Investment in Other Fixed Assets			(1,750	)			(144	)
Net Cash Used in Investing Activities			(2,534	)			(73,670	)
Proceeds from Vessel Financing			0				53,331
Repayments of Vessel Financing			(15,425	)			(14,671	)
Repayment of Borrowing Facility			(9,060	)			(44,549	)
Dividends Distributed			(62,638	)			(89,783	)
Net Cash Used in Financing Activities			(87,123	)			(95,672	)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash			15,516				(29,897	)
Effect of exchange rate changes on Cash			(41	)			(44	)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period			33,361				63,302
Cash, Cash Equivalents and Restricted Cash at End of Period			48,836				33,361
Cash and Cash Equivalents			40,498				31,078
Restricted Cash			8,338				2,283

NORDIC AMERICAN TANKERS LIMITED
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)		Three Months Ended												Nine Months Ended
Amounts in USD '000		Sept. 30, 2024				Jun. 30, 2024				Sept. 30, 2023				Sept. 30, 2024				Sept. 30, 2023
Voyage Revenue			82,217				97,808				78,450				275,312				298,983
Voyage Expense			(30,181	)			(31,709	)			(30,414	)			(96,605	)			(96,056	)
Net Voyage Revenue (1)			52,036				66,099				48,036				178,707				202,927
		Three Months Ended												Twelve Months Ended
Amounts in USD '000		Sept. 30, 2024				Jun. 30, 2024				Sept. 30, 2023				Dec. 31, 2023
Net Income			8,686				21,606				7,487				98,711
Interest Expense (Income), net			7,553				7,625				6,952				29,196
Depreciation Expense			14,210				13,935				12,669				51,397
EBITDA (2)			30,449				43,166				27,108				179,304

(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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this press release may constitute forward-looking statements.  The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.

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