Link to the complete 4th Quarter
2017 report:
http://hugin.info/159489/R/2167307/834315.pdf
Hamilton, Bermuda, February 8, 2017.
Nordic American Offshore Ltd
("NAO" or the "Company") owns and operates a fleet of 10 Platform
Supply Vessels (PSV) each averaging approximately 4,000 DWT in size
and with an average age just over 4 years. The vessels are
primarily engaged in the North Sea offshore market. We are now
optimistic for the North Sea market and we have decided to activate
our 3 modern vessels in lay-up after which all our vessels are
active. Having an attractive fleet, with all our
vessels fully operational, improved market conditions should allow
for immediate improvement in our financial results.
Results for the fourth quarter
came in lower compared with third quarter 2017. The Net Operating
Result was -$7.1m for 4Q2017 as compared with -$4.8m for 3Q2017.
The Adjusted Net Operating Result[1] was -$2.8m
as compared to -$0.2m for 3Q2017. 4Q2017 showed an
improvement on 4Q2016 of about $1.5 million.
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's
common shares. The Executive Chairman of NAO and his immediate
family hold 13.4% of NAO's commons shares.
The Board of Directors of NAO has
declared a dividend of $0.02 per share for 4Q2017 to shareholders
of record as of February 23, 2018. The payment of the dividend
is expected to take place on or about March 13, 2018. Since its
establishment in late 2013, NAO has paid dividends for 16
consecutive quarters, totaling $2.67 per share, including the
dividend to be paid March13, 2018.
NAO pursues a conservative
financial policy. At the end of 4Q2017, the net debt[2] per vessel
was $10.2 million. The Company has a waiver for certain loan
covenants, which expires in April 2018 and we expect this to be
extended.
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.
For further details on our
financial position, please see the financial information reported
below and this entire release. Our 2016 Annual Report (Form 20-F)
contains information about NAO. This report was filed with the SEC
April 24, 2017. It is also available on our web site at
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.
We encourage investors interested
in the offshore sector to consider buying shares in NAO.
Link to the graph:
http://hugin.info/159489/R/2167307/834315.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:
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
Marianne Lie, Executive Vice Chair
Nordic American Offshore Ltd.
Tel.: +47 91 64 55 06
Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91
Herbjørn Hansson, Executive Chairman
Nordic American Offshore Ltd.
Tel: +1 866 805 9504 or +47 90 14 62 91
Web-site: www.nao.bm
[1] Adjusted
Net Operating Result represents Net Operating Result before
depreciation and non-cash administrative. 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.
4th 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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