Nordic American Tanker Ltd (NYSE:NAT) Tanks On Disappointing Q1 Results

Nordic American Tanker Ltd (NYSE:NAT)

Nordic American Tanker Ltd (NYSE:NAT) has reaffirmed its commitment to protecting its dividend potential as well as earnings, after posting first-quarter earnings that failed to beat Wall Street estimates. The Bermuda-based company says it generated a net loss of $0.03 cents a share which was in line with consensus estimates.

Q1 Operating Efficiency

During the quarter Nordic American Tanker Ltd (NYSE:NAT) says it earned $22,700 per vessel per day compared to $21,600 per day per vessel in the fourth quarter. Consequently, revenues came in at $55.2 million. The company’s cash break-even rate per ship per day currently stands at $11,500 at the back of $8,400 in operating expenses per ship per day. The company’s net debt stands at $10.2 million a vessel.

Nordic American Tanker Ltd (NYSE:NAT) ‘s fleet of vessels increased to 30 with the delivery of the Nordic Space. Three new vessels are on their way with delivery set for the second half of 2018. The company has already paid 30% of the acquisition price with the remaining amount set to be paid upon delivery of the ships. According to management the new ships should go a long way in bolstering dividend and earnings capacity once delivered.

Nordic American Tanker Ltd (NYSE:NAT) is aggressively bolstering its fleet as it looks to take advantage of the growing global demand for oil.

“The development of the world economy affects the tanker industry and the demand for oil. The current demand for oil is increasing and the growth is particularly strong in China and India. NAT is very active in the Far East and does business with the major oil companies in the area, “said the company in a Press release.

Dividend Offering

Nordic American Tanker Ltd (NYSE:NAT)’s board of directors has approved a cash dividend of $0.20 a share set to be paid to shareholders of record as of May 22, 2017. Payment will be made on June 8, 2017. Having maintained a dividend payout ratio of 70% over the past nine quarters the company has reaffirmed its commitment to such payments reiterating they go a long way in providing it a competitive cash yield.

Over the last 20 years, Nordic American says it has paid quarterly dividends 79 times totaling $48.31 a share.

Nordic American Tanker Ltd (NYSE:NAT)’s stock was down by 4.10% in Monday trading session closing the day at lows of $6.78 a share. The stock has shed 16% in the market since the start of the year having dropped by 54% over the past 12 months.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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