Nordic American Tankers acquires two Suezmax tankers expected to enhance earnings and dividend capacity.
Quiver AI Summary
Nordic American Tankers Ltd. (NAT) announced the acquisition of a Suezmax tanker built in South Korea, with delivery expected at the end of March 2025. The company has also agreed to purchase a sister vessel, similarly constructed in 2016, which will be delivered in April 2025 at a price in the mid to high USD 60s. Both vessels are fully financed and are anticipated to enhance earnings and dividend capacity for NAT, which will then operate a fleet of 21 Suezmax tankers. The company is following a strategy of acquiring and occasionally selling vessels, with 2025 projected to be an active year for growth.
Potential Positives
- Acquisition of two new suezmax tankers enhances fleet capacity, expanding it to 21 well-maintained vessels.
- Both acquisitions are fully financed, indicating strong financial management and reducing the risk associated with new investments.
- Expected increase in earnings and dividend capacity from the addition of the new vessels contributes positively to shareholder value.
- 2025 is projected to be an active year for the company, signaling growth potential and strategic expansion plans.
Potential Negatives
- The company's reliance on forward-looking statements in the press release emphasizes uncertainty and risks related to their projections, which could undermine investor confidence.
- The significant dependency on assumptions and external factors, such as market conditions and regulatory changes, suggests potential volatility in future earnings and performance.
- The cautionary statement indicates a lack of guarantees in achieving the anticipated expansion and financial outcomes, which may raise concerns among shareholders regarding long-term strategic stability.
FAQ
What recent acquisition did Nordic American Tankers make?
Nordic American Tankers recently acquired a Suezmax tanker built by Sungdong in South Korea.
When is the delivery date for the new tanker?
The tanker is expected to be delivered to NAT at the end of March 2025.
How many vessels will NAT have after these acquisitions?
After these transactions, NAT's fleet will consist of 21 well-maintained Suezmax tankers.
What is the purchase price of the newly acquired vessels?
The price for the new vessels is in the mid/high USD 60s.
What is NAT's outlook for 2025?
2025 is expected to be an active year for NAT, with plans to acquire and sell ships.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NAT Hedge Fund Activity
We have seen 113 institutional investors add shares of $NAT stock to their portfolio, and 103 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 3,283,065 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $8,207,662
- CITADEL ADVISORS LLC added 3,001,376 shares (+607566.0%) to their portfolio in Q4 2024, for an estimated $7,503,440
- NUVEEN ASSET MANAGEMENT, LLC removed 1,291,537 shares (-71.1%) from their portfolio in Q4 2024, for an estimated $3,228,842
- GOLDMAN SACHS GROUP INC removed 947,119 shares (-18.9%) from their portfolio in Q4 2024, for an estimated $2,367,797
- BRIDGEWAY CAPITAL MANAGEMENT, LLC added 828,717 shares (+inf%) to their portfolio in Q4 2024, for an estimated $2,071,792
- PREVAIL INNOVATIVE WEALTH ADVISORS, LLC removed 777,711 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $2,854,199
- UBS GROUP AG added 647,088 shares (+132.9%) to their portfolio in Q4 2024, for an estimated $1,617,720
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Friday, March 14, 2025
Dear Shareholders and Investors,
As previously communicated, we recently acquired a Sungdong (South-Korea) built suezmax tanker from a first-class owner. The vessel is expected to be delivered to NAT at the end of this month (March 2025).
Sungdong was controlled by the Samsung group at the time.
The vessel has been owned by the same company since it was built in 2016.
We have now agreed to acquire a sister vessel, from the same owner, also built in 2016 at the same South-Korean yard. This vessel will be delivered to NAT within April this year.
The price to NAT is in the mid/high USD 60s.
Both vessels are fully financed and will provide additional earnings and dividend capacity.
Following these transactions , the NAT fleet will consist of 21 well maintained suezmax tankers.
We follow the plan to acquire ships and sell a few units.
2025 is expected to be an active year for NAT, which is in a strong position.
Sincerely,
Herbjorn Hansson
Founder, Chairman & CEO
Nordic American Tankers Ltd. www.nat.bm
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.
Contacts:
Bjørn Giæver, CFO
Nordic American Tankers Ltd
Tel: +1 888 755 8391
Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 724 171
