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. WolfeSeward &
Kissel LLPNew York, USATel: +1 212 574 1223 |
|
Bjørn Giæver, CFONordic American
Tankers LimitedTel: +1 888 755 8391 or +47 91 35 00
91 |
|
Herbjørn
Hansson, Chairman & CEONordic American Tankers LimitedTel:
+1 866 805 9504 or +47 90 14 62 91 |
|
|
|
|
www.nat.bm
Nordic American Tankers (NYSE:NAT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Nordic American Tankers (NYSE:NAT)
Historical Stock Chart
From Mar 2023 to Mar 2024