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 ChairmanNordic American Offshore Ltd.Tel:
+1 866 805 9504 or +47 90 14 62 91 |
Bjørn Giæver, CFONordic
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. WolfeSeward &
Kissel LLPNew York, USATel: +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.
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/343168bf-98f5-4197-a495-6da6d698e4ed
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