Link to the complete 2nd Quarter 2017
report:
http://hugin.info/159489/R/2125310/811146.pdf
Hamilton, Bermuda, August 3, 2017.
NAO has ten high-quality Platform
Supply Vessels (PSVs) built in Norway in the period 2012-2016.
Seven of our ten vessels are in operation. Going into the third
quarter, an improvement in the PSV market has taken place. In
a volatile market, the longer it lasts, the better.
The basic features of NAO are
similar to the business model of the NYSE listed Nordic American
Tankers Limited (NAT) which is a strong company.
Nordic American Tankers Limited
(NAT) holds 22.6% of NAO common shares and the immediate Hansson
family, including the Executive Chairman, holds 10.8% of NAO
commons shares.
The Board has declared a dividend
of $0.02 per share for 2Q2017 to shareholders of record as of
August 17, 2017. The payment of the dividend is expected to take
place on or about August 31, 2017. Since its establishment in late
2013, NAO has paid dividends for 14 consecutive quarters, totalling
$2.63 per share, including the dividend to be paid on or about
August 31, 2017.
NAT has announced that its
shareholders are expected to receive NAO shares as a part dividend
payment from NAT during August 2017. Following such distribution,
NAT is expected to own about 16% of NAO. Currently, NAO has about
35,000 shareholders. When NAT shareholders receive NAO shares as a
dividend, it is expected that the number of NAO shareholders will
increase.
NAO pursues a conservative
financial policy. At the end of 2Q2017, the net debt[1] per vessel
was $9.5m. NAO has in place until early 2020 a non-amortizing
credit facility of $150m.
We concentrate on keeping our
vessel operating costs low, while always maintaining our strong
commitment to safe operations. As we expand our fleet, we do not
anticipate that our administrative costs will rise
correspondingly.
Going forward, the first objective
of NAO is to reach cash break-even level.
For further details on our
financial position, please see later in this release. Our 2016
Annual Report (Form 20-F) contains information about NAO. This
report was filed with the SEC April 24, 2017. It is on our
web site www.nao.bm.
Strategy Going
Forward
The main elements of NAO's
strategy are based on quarterly dividends, low G&A costs and
liquidity in the stock.
We seek to achieve a competitive
cash yield and a satisfactory Total Return[2], a precise
measure of value creation.
NAO is committed to protecting its
underlying earnings, dividend potential and strong balance sheet.
We shall endeavor to safeguard and further strengthen NAO's
position in a deliberate, predictable and transparent way.
We encourage investors interested
in the offshore sector to consider buying shares in NAO.
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," "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 PSV market, as a result of changes in the general
market conditions of the oil and natural gas industry which
influence charter hire rates and vessel values, demand in platform
supply vessels, our operating expenses, including bunker prices,
dry docking and insurance costs, governmental rules and
regulations or actions taken by regulatory authorities as well as
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
the availability of financing and refinancing, vessel breakdowns
and instances of off-hire and other important factors described
from time to time in the reports filed by the Company with the
Securities and Exchange Commission.
Contacts:
Herbjørn
Hansson, Executive Chairman
Nordic American Offshore Ltd.
Tel: +1 866 805 9504 or +47 90 14 62 91
|
Turid M.
Sørensen, CFO
Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or +47 90 57 29 27
|
Marianne
Lie, Executive Vice Chair
Nordic American Offshore Ltd.
Tel.: +47 91 64 55 06 |
Gary J.
Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223 |
|
|
Web-site:
www.nao.bm |
|
[1] Net debt is
working capital less long term debt divided by 10 vessels
[2] Total
Return is defined as stock price plus dividends, assuming dividends
are reinvested in the stock.
2nd Quarter 2017 Result
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nordic American Offshore Ltd via
Globenewswire
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