Nordic American Tankers Limited (NYSE:NAT) - Another TC contract with a major oil company.
September 05 2017 - 5:39AM
Hamilton, Bermuda, September 5, 2017
Dear Shareholder,
In our message of August 23 and earlier in
August 2017, we informed you about our time charter (TC)
arrangements with Shell, ExxonMobil and other major oil companies
both in the West and in the East. We are pleased to inform
you that we now have entered into a 2 year contract with British
Petroleum (BP). The minimum rate is well above our cash break-even
level with an index linked formula providing for upside potential
to NAT. Commencement is mid September; i.e. in about 10 days.
As an example of the income potential of NAT, if
our fleet is achieving about $30,000 per day spread across all the
NAT vessels, the dividend potential could be about $2 per share per
year. In the past, on occasions, the tanker market has been much
higher than that.
NAT has now five vessels on longer term
contracts with major oil companies worldwide. In addition, we have
shorter contracts with other major energy companies in the East and
in the West. The contracts with big oil, such as Shell, BP and
ExxonMobil, are examples of the confidence customers have in NAT
and in our fleet of Suezmax vessels.
Kind regards, Herbjørn Hansson Chairman & CEO Nordic
American Tankers Limited
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," "will," "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 tanker
market, as a result of changes in OPEC's petroleum production
levels and world wide oil consumption and storage, changes in our
operating expenses, including bunker prices, drydocking and
insurance costs, the market for our vessels, availability of
financing and refinancing, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other important factors
described from time to time in the reports filed by the Company
with the Securities and Exchange Commission, including the
prospectus and related prospectus supplement, our Annual Report on
Form 20-F, and our reports on Form 6-K.
Contacts:
Herbjørn Hansson, Chairman & CEONordic American Tankers
LimitedTel: +1 866 805 9504 or +47 90 14 62 91
Erik Tomstad, Chief Executive CharteringNordic American Tankers
LimitedTel: +47 23 69 69 01 or +47 90 98 32 40
Gary J. Wolfe Seward & Kissel LLP New York, USA Tel: +1 212
574 1223
www.nat.bm
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/7b116953-2ed6-4864-8cbc-65b988fe6f1f
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