6-K 1 d9966398_6k.htm

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 February 2023
Commission File Number: 001-13944
 

 

NORDIC AMERICAN TANKERS LIMITED
(Translation of registrant’s name into English)
 
 
 
 

LOM Building, 27 Reid Street, Hamilton, HM 11, 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 February 27, 2023, announcing the Company’s dividend and earnings report for the fourth quarter of 2022.

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
 
(registrant)
 
 
Dated: February 27, 2023
By:
/S/ HERBJØRN HANSSON
 
 
Herbjørn Hansson
 
 
Chairman, President, and Chief Executive Officer
 
 
 
 
 
 
 
 
 


Exhibit 1




Nordic American Tankers Limited (NYSE: NAT) – Report December 31, 2022 (Fourth quarter & full year 2022) –  Rates & Dividends are up

Monday, February 27, 2023


The 4Q 2022 Net result is more than $50 million better than the same quarter 2021. The direction of NAT is unquestionably upwards.

Highlights: 

1
The average Time Charter Equivalent (TCE) for our spot vessels (15) during the fourth quarter of 2022 came in at $57,340 per day per ship. Including vessels on term contracts (4), the total average NAT TCE was $49,035 per day per ship. This was 76% up from the third quarter of 2022. Our operating costs are about $8,000 per day per vessel.

2
The net profit for 4Q 2022 more than tripled from 3Q 2022 and landed at $36 million or an Earnings per share (EPS) of $0.17. the previous quarter saw a net profit of $10.0 million and an EPS of $0.05. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for 4Q 2022 came in with a positive $51.1 million, compared to an adjusted EBITDA of $28.4 million in 3Q 2022. The bulk of our 2022 periodic drydockings took place in the fourth quarter and as such affected our revenues negatively.

3
Strong rates have continued into first quarter this year. So far, 72% of our spot voyage days have been booked at an average TCE of $60,630 per day per ship. With the 1Q 2023 bookings, we expect the first quarter 2023 net results to further improve vis-à-vis the strong 4Q 2022.

4
The dividend for the fourth quarter of 2022 will be 15 cents ($0.15) per share compared to 5 cents in the previous quarter. The Dividend will be payable on March 28, 2023 to shareholders on record as of March 14, 2023.

5
NAT has one of the lowest debt levels among publicly listed tanker companies. Our net debt stood at $197 million equal to $10.3 million per ship at December 31, 2022. The turnaround in the market is further illustrated by our cash position that stood at $59.6 million December 31, 2022 compared to $34.7 million same time a year ago. Currently our cash position is about $90 million.

6
As we have seen in the past, political uncertainty creates demand for the transport of oil. As a consequence of Russia’s invasion of Ukraine and the West’s strong reaction, energy security is of paramount concern.  Oil will have to be sourced from further away than in the past, creating longer voyages. Uncertain times also encourage hoarding among some buyers, adding to demand for oil and for the NAT tankers.


7
NAT in particular stands to benefit from the fact that the supply of Suezmax tankers will remain at historic low levels for at least the next two or three years. Only 14 new ships are currently on order, representing only 2% of the existing fleet. This is a 30 year low. Environmental regulations, increased steel and production costs, and higher interest rates make investing in new ships challenging. A small order book for new tankers has always been positive for our industry.

8
The NAT fleet of versatile suezmax tankers offers flexibility in loading and discharging ports. Through careful voyage planning and adjustment of speed of our vessels, the NAT fleet is reducing emissions.

9
Financial information for the fourth quarter of 2022 and for other periods is included later in this report.

Sincerely

Herbjørn Hansson
founder, Chairman & CEO
Nordic American Tankers Ltd



Our Fleet

As of December 31, 2022 our fleet consisted of 19 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.

The main operational challenges during the pandemic and now with the conflict in Ukraine have been related to crews and our work to safeguard our seafarers and our ships.

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 & full year 2022

For the fourth quarter 2022 the net profit was $36 million or an EPS of $0.17. This is a significant improvement compared with the third quarter 2022, where we recorded a net result of $10.0 million or an EPS of $0.05. For the fourth quarter 2021 we saw a net loss of -$72.9 million or -$0.41 per share.

The average time charter equivalent (TCE) for our fleet during the fourth quarter of 2022 came in at $49,035 per day per ship, up from the third quarter of $27,850 per day per vessel. The strong earnings have continued in the new year and so far in first quarter 2023, 72% of our spot voyage days have been booked at an average TCE of $60,630 per day per ship. This number is on a discharge-to-discharge basis. We currently have fifteen of our nineteen 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.



Financing

Our Net Debt (total liabilities less current assets) stood at $197 million, which equals $10.3 million per ship based on 19 vessels, as of December 31, 2022.

The details of our two financing arrangements are as follows;

1)
The total outstanding balance to CLMG/Beal Bank (including current portion of the debt), was $129.2 million as of December 31, 2022. The total outstanding balance to CLMG/Beal Bank as of the date of this report is $128.2 million. 

2)
The 5 vessels financed through Ocean Yield have as of December 31, 2022 a total outstanding balance of $180.8 million, including current portion of the debt.
Current portion of long term debt is presented in our balance sheet with a total of $39.7 million net of transaction costs. This number includes current portion of the long term debt related to CLMG/Beal Bank of $25.8 million, which includes $15.2 million in excess payment from earnings generated in the fourth quarter. $13.9 million is related to the Ocean Yield financing. Restricted cash of $3.7 million is related to deposits held for future Drydockings of our vessels, in accordance with our borrowing agreement with Beal Bank/CLMG.

We have not utilized the ATM in the fourth quarter.

For the fourth quarter of 2022 a cash dividend of 15 cent ($0.15) per share has been declared. This is our consecutive quarterly dividend number 102.

Payment of the dividend will be on March 28, 2023, to shareholders of record on March 14, 2023.  


World Economy and the Tanker Market

As we have seen in the past, political uncertainty creates demand for the transport of oil. As a consequence of Russia’s invasion of Ukraine and the West’s strong reaction, energy security is of paramount concern.  Oil will have to be sourced from further away than in the past, creating longer voyages. Uncertain times also encourages hoarding among some buyers, adding to demand for oil and for the NAT tankers.

We also see a longer-term trend, and that is the increased demand for oil, in particular from Asian economies. Over the last decades, hundreds of millions of people have been lifted out of poverty. A strong middle class has taken root and continues to grow rapidly, producing an ever-expanding appetite for oil.

Finally, NAT in particular stands to benefit from the fact that the supply of Suezmax tankers will remain at historic low levels for at least the next two or three years. Environmental regulations, increased steel and production costs, and higher interest rates make investing in new ships quite challenging. A smaller order book for new tankers has always helped our industry.

The world’s Suezmax fleet (excl. shuttle, product & Jones Act tankers) counted 573 vessels as of December 31, 2022, with only 14 vessels in order (2% of the world suezmax fleet). This is a historically low orderbook by any measure. Only six suezmax tankers for delivery from the shipyards for the balance of this year and only five Suezmax tankers are in the orderbooks for 2024. For 2025 there is so far only expected 3 vessels for delivery. For comparison, there was 32 Suezmax tankers delivered in 2022 alone.

The available shipyard capacity has to a large extent been booked by bulk, gas and container ships, leaving very limited capacity to build additional Suezmax tankers with quality yards on this side of 2025. This is very good news for the long term market dynamics in our industry and we could potentially see net negative fleet growth in the conventional suezmax market in the coming two to three years.

All of the above are good news for the short- and long term outlook for our tankers. It is our opinion 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 current fleet of 19 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.


* * * * *



NORDIC AMERICAN TANKERS LIMITED
                    
 
                              
CONSOLIDATED CONDENSED
STATEMENTS OF OPERATION
(UNAUDITED)
  
Three Months Ended
   
Twelve Months Ended
  
 
Dec. 31, 2022
    
Sep. 30, 2022
    
Dec. 31, 2021
    
Dec. 31, 2022
    
Dec. 31, 2021
  
Amounts in USD '000
                               
Net Voyage Revenue
    
71,097
      
47,382
      
22,625
      
168,825
      
67,496
  
                                         
                                         
Vessel Operating Expenses
    
(15,219
)
    
(14,829
)
    
(16,236
)
    
(63,430
)
    
(67,676
)
Depreciation Expenses
    
(12,732
)
    
(12,299
)
    
(16,278
)
    
(50,421
)
    
(68,352
)
Impairment
    
0
      
0
      
(51,905
)
    
(314
)
    
(60,311
)
Gain / (Loss) on Disposal of Vessels
    
5,662
      
1,173
      
0
      
6,005
      
0
  
General and Administrative Expenses
    
(5,086
)
    
(4,282
)
    
(4,356
)
    
(18,798
)
    
(15,620
)
Operating Expenses
    
(27,375
)
    
(30,237
)
    
(88,775
)
    
(126,958
)
    
(211,959
)
Net Operating Income (Loss)
    
43,722
      
17,145
      
(66,150
)
    
41,867
      
(144,463
)
                                         
Interest Expense
    
(8,046
)
    
(7,278
)
    
(6,661
)
    
(27,055
)
    
(26,377
)
Other Financial Income (Expenses)
    
356
      
141
      
(138
)
    
289
      
(488
)
Total Other Expenses
    
(7,690
)
    
(7,137
)
    
(6,799
)
    
(26,766
)
    
(26,865
)
Net Income (Loss)
    
36,032
      
10,008
      
(72,949
)
    
15,101
      
(171,328
)
Basic and Diluted Earnings (Loss) per Share
    
0.17
      
0.05
      
(0.41
)
    
0.07
      
(1.05
)
Weighted Average Number of Common Shares Outstanding
    
208,796,444
      
206,904,866
      
178,327,023
      
202,032,942
      
162,549,611
  
Common Shares Outstanding
    
208,796,444
      
208,796,444
      
183,694,196
      
208,796,444
      
183,694,196
  
                                         


CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
        
Amounts in USD '000
  
Dec. 31, 2022
    
Dec. 31, 2021
  
             
Cash and Cash Equivalents
    
59,583
      
34,739
  
Restricted Cash
    
3,719
      
9,909
  
Accounts Receivable, Net
    
20,474
      
9,374
  
Prepaid Expenses
    
5,975
      
4,847
  
Inventory
    
25,430
      
20,873
  
Voyages in Progress
    
23,997
      
10,488
  
Other Current Assets
    
4,336
      
1,918
  
Vessels Held for Sale
    
0
      
14,960
  
Total current assets
    
143,514
      
107,108
  
Vessels, Net
    
735,134
      
715,264
  
Vessels under Construction
    
0
      
24,270
  
Other Non-Current Assets
    
2,087
      
4,511
  
Total Non-Current Assets
    
737,221
      
744,045
  
Total Assets
    
880,735
      
851,153
  
                 
Accounts Payable
    
6,960
      
6,552
  
Accrued Voyage Expenses
    
11,315
      
14,985
  
Other Current Liabilities
    
15,290
      
8,561
  
Current Portion of Long Term Debt
    
39,700
      
37,547
  
Total Current liabilities
    
73,265
      
67,645
  
Long-Term Debt
    
266,337
      
283,411
  
Other Non-Current Liabilities
    
1,151
      
1,873
  
Total Non-current Liabilities
    
267,488
      
285,284
  
Shareholders' Equity
    
539,982
      
498,224
  
Total Liabilities and Shareholders' Equity
    
880,735
      
851,153
  

NORDIC AMERICAN TANKERS LIMITED
            
 
            
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(UNAUDITED)
  
Twelve Months Ended
    
Twelve Months Ended
  
   
Dec. 31, 2022
    
Dec. 31, 2021
  
Amounts in USD '000 
            
Net Cash Provided by (Used in) Operating Activities
    
24,134
      
(44,458
)
                 
Investment in Vessels
    
(5,116
)
    
(3,868
)
Investment in Vessels, Newbuildings
    
(90,301
)
    
(13,270
)
Investment in Other Fixed Assets
    
0
      
(589
)
Proceeds from Vessel Sales
    
81,074
      
14,262
  
Net Cash Used in Investing Activities
    
(14,343
)
    
(3,465
)
                 
Proceeds from Issuance of Common Stock
    
49,096
      
80,051
  
Proceeds from Borrowing Activities
    
88,000
      
0
  
Repayments of Vessel Financing
    
(11,476
)
    
(7,958
)
Repayment of Borrowing Facility
    
(93,933
)
    
(30,780
)
Financing Transaction Costs
    
0
      
(1,100
)
Dividends Distributed
    
(22,682
)
    
(9,700
)
Net Cash Provided by Financing Activities
    
9,005
      
30,513
  
                 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
    
18,796
      
(17,409
)
Effect of exchange rate changes on Cash
    
(142
)
    
(13
)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
    
44,648
      
62,070
  
Cash, Cash Equivalents and Restricted Cash at End of Period
    
63,302
      
44,648
  
Cash and Cash Equivalents
    
59,583
      
34,739
  
Restricted Cash
    
3,719
      
9,909
  


NORDIC AMERICAN TANKERS LIMITED
        
 
                              
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
  
Three Months Ended
    
Twelve Months Ended
  
Amounts in USD '000
  
Dec. 31, 2022
    
Sep. 30, 2022
    
Dec. 31, 2021
    
Dec. 31, 2022
    
Dec. 31, 2021
  
Voyage Revenue
    
110,207
      
104,879
      
55,037
      
339,340
      
195,759
  
Voyage Expense
    
(39,110
)
    
(57,497
)
    
(32,412
)
    
(170,515
)
    
(128,263
)
Net Voyage Revenue (1)
    
71,097
      
47,382
      
22,625
      
168,825
      
67,496
  
                                         
 
  
Three Months Ended
    
Twelve Months Ended
  
Amounts in USD '000
  
Dec. 31, 2022
    
Sep. 30, 2022
    
Dec. 31, 2021
    
Dec. 31, 2022
    
Dec. 31, 2021
  
Net Income (Loss)
    
36,032
      
10,009
      
(72,949
)
    
15,101
      
(171,328
)
Interest Expense
    
8,046
      
7,278
      
6,661
      
27,055
      
26,377
  
Depreciation Expense
    
12,732
      
12,299
      
16,278
      
50,421
      
68,352
  
EBITDA (2)
    
56,810
      
29,586
      
(50,010
)
    
92,577
      
(76,599
)
Impairment and (Gain) / Loss on Disposal of Vessels
    
(5,662
)
    
(1,173
)
    
51,905
      
(5,691
)
    
60,311
  
ADJUSTED EBITDA
    
51,148
      
28,413
      
1,895
      
86,886
      
(16,288
)
                                         

(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.


Contacts:
  
 
Alexander Kihle, Finance Manager
Nordic American Tankers Ltd
Tel: +47 91 72 41 71
 
  
Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391
  
   
     
Web-site: www.nat.bm