NORDIC AMERICAN TANKERS Ltd 6-K, filed Mar 5, 2025
NORDIC AMERICAN TANKERS Ltd (NAT)
6-K
2025-03-05
For: 2024-12-31
View Original
Added on
April 09, 2026
About this 6-K
NORDIC AMERICAN TANKERS Ltd filed this 6-K on March 5, 2025.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2025
Commission File Number: 001-13944
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NORDIC AMERICAN TANKERS LIMITED
(Translation of registrant’s name into English)
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Swan building, 26 Victoria Street, Hamilton, HM12, Bermuda
(Address of principal executive office)
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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 ☐
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INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 1
is a press release of Nordic American Tankers Limited (the "Company") dated February 28, 2025, announcing the Company’s dividend and earnings report for the fourth 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.
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NORDIC AMERICAN TANKERS LIMITED
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(registrant)
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Dated: March 5, 2025
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By:
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/S/ HERBJØRN HANSSON
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Herbjørn Hansson
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Chairman, President, and Chief Executive Officer
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Exhibit 1
Nordic American Tankers Limited (NYSE: NAT) – Report as per December 31, 2024
– The direction is upwards. Dividend payments continue and are 6 cents this quarter.
– The direction is upwards. Dividend payments continue and are 6 cents this quarter.
Friday, February 28, 2025
Ninety day periods offer a short-term snapshot of a company, but it is more instructive to look at the bigger, longer-term picture. The direction of NAT is unquestionably
upwards as we create room for profitable growth. Whatever we do, dividends remain our primary objective.
As part of our plan to buy a few ships and sell a few ships, we have since the end of 2024 agreed to purchase one 2016-built suezmax tanker from a first
class owner. The vessel will be delivered to NAT during the second quarter of this year. The price is in the mid/high 60’s. The new unit will provide additional earnings and dividend capacity to NAT. We expect the vessel to be financed with cash
and lease financing.
As previously advised, we have sold one of our 2003-built suezmax tankers and the vessel was delivered to its new owners earlier this week. The proceeds from
this sale ($23 mill) will also enhance our financial flexibility.
Highlights:
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1
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NAT achieved a net voyage revenue for the full year 2024 of $225 million and a net result of $46.6 million. The average time charter equivalent (TCE) for our fleet (spot & TC vessels) during the fourth quarter of 2024 came in at $26,416 per day per ship, leaving NAT with a solid operating margin
as running costs per vessel are about $9,000 per day.
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The dividend for the fourth quarter is 6 cents ($0.06) per share. This is our 110th consecutive quarterly cash dividend
declaration. The dividend is payable March 24, 2025, to shareholder on record as of March 10, 2025.
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The new administration in the White House is increasing the pressure on sanctioned oil trades and sanctioned vessels. This is one
reason why we are optimistic about prospects for 2025, as there will be more transportation work for NAT, a fully compliant company in all respects. NAT has not transported Russian oil the last 3.5 years.
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Following the new and improved $150 million financing agreement with Beal Bank, seven of our vessels are not encumbered and are
debt free, thus providing us with greater financial flexibility.
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In addition, we have exercised the purchase option for two of our 2018-built vessels that are lease-financed through Ocean Yield,
one of our two well-established financial partners. The vessels will be transferred to us during the third quarter this year. The market value of these vessels is well in excess of the outstanding loan which gives us extra
maneuverability.
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Thanks to careful voyage planning and adjustment of speed, we continue to reduce emissions of our vessels.
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1
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Each ship in the NAT fleet is in excellent technical condition, as proven by the vetting performance.
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Sincerely,
Herbjørn Hansson
founder, Chairman & CEO
Nordic American Tankers Ltd
Our Fleet
As of December 31, 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 and the vast
majority of our ships are built in South Korea.
After the last quarter of 2024 we purchased one 2016-built suezmax tanker that we plan to take delivery of during the second quarter of 2025. The vessel will be financed with cash-at-hand and lease
financing.
We have also declared purchase options for two of our 2018-built suezmax tankers currently financed with Ocean Yield. These two transactions will be concluded in the third quarter of 2025, by us
paying down the outstanding debt on the vessels. We plan to fund this with a combination of cash and new financing.
As previously advised, we have sold the 2003-built Nordic Apollo and the vessel was delivered to its new owners on February 26, 2025. The proceeds from this sale will also add to our financial
flexibility.
The above transactions are all a part of our plan to renew and grow our fleet, in which we plan to sell a few vessels and purchase a few vessels.
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 fourth quarter and the full year of 2024
The full year of 2024 produced a Net income of $46.6 million. For the fourth quarter of 2024, the net income was $1.3 million or an EPS of $0.01.
The average time charter equivalent (TCE) for our fleet during the fourth quarter of 2024 came in at $26,416 per day per ship. This number is 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 the tables on page 5 and 6 of
this press release.
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Financing
Our Net Debt (total liabilities less current assets) stood at $210.0 million, which equals $10.5 million per ship based on 20 vessels, as of December 31, 2024.
The details of our two financing arrangements are as follows;
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The total outstanding balance to CLMG/Beal Bank, was $72.5 million as of December 31, 2024, including current portion of the debt. This loan has been
renewed on a five-year term with a higher loan amount and a lower margin. Seven vessels (including the recently sold Nordic Apollo) that used to be in the collateral package for this loan have been released. The increased loan amount of
$150 million and the 7 released collateral vessels strengthens our financial flexibility and is an important tool in our plan to renew and grow our fleet.
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The 6 vessels financed through Ocean Yield have as of December 31, 2024 a total outstanding balance of $199.5 million, including current portion of the
debt. We have since the end of the quarter declared purchase options for the Nordic Aquarius and the Nordic Cygnus and we will have these vessels transferred to us during 3Q 2025 at which point the outstanding $48 million debt ($24m each)
on these two vessels will be paid down.
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Current portion of long-term debt is now $21.5 million net of transaction costs. $20.6 million is related to the Ocean Yield financing and $0.9 million is related to the Beal/CLMG financing.
Restricted cash of $5.2 million is related to deposits held for future drydockings of our vessels, in accordance with our borrowing agreement with Beal Bank/CLMG.
Our G&A for 4Q 2024 was influenced by a settlement of our option program of 3,855,000 options, that was distributed among 20 employees and associates in 2022. This resulted in a $886.650
additional cost in the G&A.
We made a final utilization of our $60 million ATM dated February 14th, 2022, and issued 2,954,219 new shares during 4Q 2024, raising gross proceeds of $9.2 million. There was $17.2
million remaining under the $60 million ATM on December 31, 2024. This ATM program has now lapsed.
For the fourth quarter of 2024 a cash dividend of 6 cent ($0.06) per share has been declared. This is our 110th consecutive quarterly dividend declaration.
Payment of the dividend will be on March 24, 2025, to shareholders of record on March 10, 2025.
World Economy and the Tanker Market
Political uncertainty continues and we do not see this going away anytime soon. We see high demand for oil, driven by uncertain time and a fragmented trade
picture with logistical inefficiencies and a tight supply of ships. 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 excessive in a historic perspective. 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 583 vessels as of December 31, 2024. The orderbook for Suezmax tankers now counts 97 vessels
which equals 17% of the world’s conventional suezmax fleet spread over the next 4 years (The historic average for orderbook in percent of existing fleet is 20%).
26 new suezmax tankers will enter the world fleet in 2025, 34 in 2026, 33 in 2027 and still only 4 ships have been booked for 2028. It is also worth noting that by the end of
2027, the world fleet will count 156 conventional suezmax tankers of 20 years of age or older (27% of the existing world fleet). This number compares favorably with the orderbook of 93 units for delivery up until the same date.
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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 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 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.
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
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATION (UNAUDITED)
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Three Months Ended
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Twelve Months Ended
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Dec. 31, 2024
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Sept. 30, 2024
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Dec. 31, 2023
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Dec. 31, 2024
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Dec. 31, 2023
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Amounts in USD '000
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Net Voyage Revenue
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46,389
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52,036
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59,254
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225,096
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262,180
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Vessel Operating Expenses
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(14,708)
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(15,772)
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(15,520)
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(62,809)
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(60,003)
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Depreciation Expenses
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(13,870)
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(14,210)
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(13,278)
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(56,151)
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(51,397)
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General and Administrative Expenses
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(9,056)
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(5,834)
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(5,856)
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(28,825)
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(22,890)
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Operating Expenses
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(37,634)
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(35,816)
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(34,654)
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(147,785)
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(134,290)
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Net Operating Income
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8,755
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16,220
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24,600
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77,311
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127,890
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Interest Income
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130
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173
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42
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731
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1,302
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Interest Expense
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(7,097)
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(7,726)
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(7,204)
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(30,739)
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(30,498)
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Other Financial Income (Expenses)
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(493)
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19
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66
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(660)
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17
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Total Other Expenses
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(7,460)
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(7,534)
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(7,096)
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(30,668)
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(29,179)
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Net Income
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1,295
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8,686
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17,504
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46,643
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98,711
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Basic and Diluted Earnings per Share
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0.01
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0.04
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0.08
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0.22
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0.47
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Weighted Average Number of Common Shares Outstanding
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210,505,764
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208,796,444
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208,796,444
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209,227,286
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208,796,444
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Common Shares Outstanding
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211,750,663
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208,796,444
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208,796,444
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211,750,663
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208,796,444
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CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
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Dec. 31, 2024
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Dec. 31, 2023
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Amounts in USD '000
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Cash and Cash Equivalents
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39,177
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31,078
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Restricted Cash
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5,207
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2,283
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Accounts Receivable, Net
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16,223
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26,287
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Prepaid Expenses
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6,227
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4,319
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Inventory
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21,931
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31,183
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Voyages in Progress
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6,570
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11,178
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Other Current Assets
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3,436
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2,582
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Total Current Assets
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98,771
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108,910
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Vessels, Net
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715,273
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768,584
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Other Non-Current Assets
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3,543
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1,702
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Total Non-Current Assets
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718,816
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770,286
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Total Assets
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817,587
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879,196
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Accounts Payable
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4,257
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3,446
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Accrued Voyage Expenses
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12,294
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11,748
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Other Current Liabilities
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13,204
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10,858
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Dividends Payable
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8,470
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12,528
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Current Portion of Long Term Debt
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21,560
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31,898
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Total Current liabilities
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59,785
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70,478
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Long-Term Debt
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248,144
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269,697
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Other Non-Current Liabilities
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845
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717
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Total Non-current Liabilities
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248,989
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270,414
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Shareholders' Equity
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508,813
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538,304
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Total Liabilities and Shareholders' Equity
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817,587
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879,196
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NORDIC AMERICAN TANKERS LIMITED
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(UNAUDITED)
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Twelve Months Ended
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Twelve Months Ended
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Dec. 31, 2024
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Dec. 31, 2023
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Amounts in USD '000
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Net Cash Provided by Operating Activities
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124,611
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139,445
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Investment in Vessels
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(870)
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(73,526)
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Investment in Other Fixed Assets
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(1,750)
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(144)
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Net Cash Used in Investing Activities
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(2,620)
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(73,670)
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Proceeds from Issuance of Common Stock
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8,932
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0
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Proceeds from Vessel Financing
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0
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53,331
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Repayments of Vessel Financing
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(20,662)
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(14,671)
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Repayment of Borrowing Facility
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(12,079)
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(44,549)
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Dividends Distributed
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(87,695)
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(89,783)
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Net Cash Used in Financing Activities
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(111,504)
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(95,672)
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Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
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10,487
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(29,897)
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Effect of exchange rate changes on Cash
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536
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(44)
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Cash, Cash Equivalents and Restricted Cash at Beginning of Period
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33,361
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63,302
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Cash, Cash Equivalents and Restricted Cash at End of Period
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44,384
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33,361
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Cash and Cash Equivalents
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39,177
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31,078
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Restricted Cash
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5,207
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2,283
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NORDIC AMERICAN TANKERS LIMITED
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
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Three Months Ended
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Twelve months ended
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Amounts in USD '000
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Dec. 31, 2024
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Sept. 30, 2024
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Dec. 31, 2023
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Dec. 31, 2024
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Dec. 31, 2023
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Voyage Revenue
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74,430
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82,217
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92,704
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349,742
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391,687
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Voyage Expense
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(28,041)
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(30,181)
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(33,450)
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(124,646)
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(129,507)
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Net Voyage Revenue (1)
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46,389
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52,036
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59,254
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225,096
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262,180
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Three Months Ended
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Twelve Months Ended
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Twelve Months Ended
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Amounts in USD '000
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Dec. 31, 2024
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Sept. 30, 2024
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Dec. 31, 2023
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Dec. 31, 2024
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Dec. 31, 2023
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Net Income
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1,295
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8,686
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17,504
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46,644
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98,711
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Interest Expense (Income), net
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6,967
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7,553
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7,162
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30,739
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29,196
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Depreciation Expense
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13,870
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14,210
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13,278
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56,151
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51,397
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EBITDA (2)
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22,132
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30,449
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37,944
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133,534
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179,304
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(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.
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(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.
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6
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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Contacts:
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Alexander Kihle, Finance Manager
Nordic American Tankers Limited
Tel: +47 91 72 41 71
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Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391
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Web-site: www.nat.bm
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