YASTEST
Link to the complete 3rd Quarter 2017
report:
http://hugin.info/159489/R/2148942/824607.pdf
Hamilton, Bermuda, November 10, 2017.
The Board has declared a dividend
of $0.02 per share for 3Q2017 to shareholders of record as of
November 27, 2017. The payment of the dividend is expected to
take place on or about December 12, 2017. Since its establishment
in late 2013, NAO has paid dividends for 15 consecutive quarters,
totalling $2.65 per share, including the dividend to be paid
December 12, 2017.
The third quarter produced
improved results for NAO. The Net Result was -$5.8m for 3Q2017
against -$6.7m for 2Q2017. The Adjusted Net Operating
Earnings[1] (EBITDA)
was -$0.2m compared to -$2.4m of the second quarter 2017.The cash
flow for 3Q2017 of -$0.2m is a substantial improvement year on year
and recent quarters. In 2Q2017 the cash flow was -$2.4m.
NAO has ten high-quality Platform
Supply Vessels (PSVs) built in Norway in the period 2012-2016.
Three of the ten vessels are currently in lay-up awaiting improved
market condition.
The basic features of NAO are
similar to the business model of the NYSE listed tanker company
Nordic American Tankers Limited (NAT). NAT holds 16.1% of NAO
common shares and the Executive Chairman of NAO and his immediate
family holds 13.4% of NAO commons shares.
NAO has about 35,000 shareholders.
NAO pursues a conservative
financial policy. At the end of 3Q2017, the net debt[2] per vessel
was $9.8m. 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. We have succeeded in reducing our
cost level in 2017 compared with 2016.
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[3], 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.
NAO has a modern fleet with low
fuel consumption and excellent safety records.
We encourage investors interested
in the offshore sector to consider buying shares in NAO.
Link to the graph:
http://hugin.info/159489/R/2148942/824607.pdf
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
|
Bjørn
Giæver, CFO
Nordic American Offshore Ltd.
Tel: +1 888 755 8391 or +47 91 35 00 91
|
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] Adjusted
Net Operating Earnings (Loss) represents Net Operating Earnings
(Loss) before depreciation and non-cash admin. charges.
[2] Net debt is
working capital less long-term debt divided by 10 vessels.
[3] Total
Return is defined as stock price plus dividends, assuming dividends
are reinvested in the stock.
3rd 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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