Nordic American Tankers earned $46.9 million in the first quarter

Nordic American Tankers earned .9 million in the first quarter

Nordic American Tankers CEO Herbjørn Hansson already declared in February that the first quarter was “firing on all cylinders.” reflected in the results.

The average daily rate for the shipping company’s vessels operating in the spot market of $60,005 contributed to a net result of $46.9 million, as well as NOK 510 million at the day’s rate.

That’s up from $36.0 million in the fourth quarter of last year, and up sharply from minus $27.0 million last year.

If the ships were included in longer shipping contracts, the average daily rate for the entire fleet was $51,902 per ship fleet. According to the company, this is the shipping company’s second-strongest earnings ever.

Shareholders get paid for it. The dividend is proposed at $0.15 per share. Share – as in the fourth quarter of last year. On the New York Stock Exchange, where the company is listed, the stock is trading at $3.8.

(million US dollars) First quarter / 23 x 1/22
operating income 87.1 15.5
playback result 54.7 -20.9
The result after tax 46.9 -27.0

Very interesting market

In the report, Hanson writes that the seasonal cooldown seen so far in the market has already bottomed out, at levels that in previous years would have been considered very good earnings.

“It shows that the lack of Suezmax vessels should ensure a very interesting market going forward for the North American tanker industry. There will be seasonal movements, but we expect profits to be at higher levels than they have been previously due to lower orders,” he wrote.

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Global demand for Suez Max class tankers is now just 3 percent. It’s historically low, according to the shipping company.

The Sandefjord shipowner operates a fleet of 19 such vessels, i.e. tankers with a cargo capacity of more than 1 million barrels of crude oil.

So far in the second quarter, contracts have been entered into that guarantee the company an average hourly rental rate of $42,111 per hour. Ship per day from April to June.

“Spot prices have now turned higher, but if the level is reached for the entire second quarter, it will be the second quarter that has only been achieved three times in the company’s history,” Hanson points out.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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