Bermuda July 5, 2019
Dear shareholders/investors,
We sent you our most recent memo on scrubbers
March 20, 2019. Many of you come to us with questions
relating to scrubbers. NAT has a clear policy which has
been communicated before.
Please see our memo below.
Nordic American Tankers Ltd
(NYSE: NAT) - Comments on Scrubbers
Bermuda March 20, 2019
Dear shareholders/investors,
Nordic American Tankers Ltd (NYSE: NAT or the
"Company") communicated its view on the new Sulphur requirements,
effective from 2020 in our Press Release October 24, 2017 and in a
NAT conference call held February 20, 2019. The Company is
steadfast on its decision that scrubbers are not a solution for NAT
based upon a conservative financial policy. NAT does not take on
risk it does not have to.
An increased number of ports now prohibit or
impose strict requirements on the use of scrubbers, which purify
emissions from large ships. The scrubber cleans the exhaust from
vessels for Sulphur and emit impure water into the sea, and that is
what the ports now will put an end to. Therefore, we still do
not see that this new requirement is an issue for NAT.
According to Reuters of yesterday, the Norwegian
authorities may ban the use of scrubbers. It is indicated in the
Reuters message that a worldwide ban may become in effect.
Press Release October 24,
2017.
In this press release it was stated that discussions about the
sulphur requirements for bunker consumption on ships to be in
effect from 2020. Our 33 (which NAT had at the time) Suezmax
tankers are fully compliant to run on 0.10% sulphur content or
less. Therefore, going forward we do not see that this new
requirement is an issue for NAT.
Conference call February 20,
2019.
The same scrubber considerations were discussed at
the NAT investor conference call February 20, 2019.
Reuters: Norway considers a ban
on scrubbers
Now, a ban on so-called scrubbers is also being
considered in Norway, according to Reuters.
An increasing number of ports around the world
prohibits the use of scrubbers, which purify emissions from large
ships. The news agency E24 wrote a few days ago how the industry
believes that ships without scrubbers could be exposed, as more and
more customers demand lower emissions from their shipping
partners.
Now comes the news that several ports consider
banning scrubbers. The point of the scrubbers is that they clean
the exhaust from the ships for sulphur. The consequence is that the
ships pump impure water into the sea - and that is what the ports
will now put an end to, writes Reuters.
Also in Norway, a ban on the use of scrubbers that emit unclean
water into the fjords is now being considered. E24 refers to a
non-named source in the Ministry of Climate and Environment.
It is a question whether all types of scrubbers
may be prohibited.
The International Shipping Organization (IMO) has
decided that the limit for sulphur content in fuel used in shipping
should be reduced from the current 3.5 per cent to 0.5 per
cent.
We cannot say for certain what the outcome can be
expected to be. We feel confident, though, that the view of NAT
communicated explicitly Oct 24, 2017, is the right avenue
forward.
Whether a worldwide ban may become relevant,
remains to be seen.
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 worldwide 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: |
|
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
|
|
Bjørn
Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91 |
|
Herbjørn Hansson, Chairman & CEO
Nordic American Tankers Limited
Tel: +1 866 805 9504 or +47 90 14 62 91 |
|
|
|
|
www.nat.bm
Press Release (PDF)
This
announcement is distributed by West Corporation on behalf of West
Corporation 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 Tankers Limited via
Globenewswire
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