In the fourth quarter of 2015 Nordic American Tankers (NAT) profited from a strong tanker market which pushed the company’s operating cash flow by 16 percent.
Due to a cash breakeven rate below USD 12,000 per day per ship and a growing NAT Suezmax fleet, the fourth quarter operating cash flow was at USD 57.2 million, compared to USD 24.5 million a year earlier.
The company’s full year operating cash flow was at USD 212 million, representing “the strongest year in NAT’s history”.
Tanker daily rates achieved on average USD 39,800 per day throughout the fourth quarter, as against USD 24,000 for the same period in 2014, which helped the company post USD 30.1 million net profit for the final three months of 2015, reaching a full year net profit of USD 114.6 million.
During the quarter NAT expanded its credit facility up to USD 500 million, maturing in December 2020. The undrawn part of the company’s credit facility plus net working capital stood at about USD 267 million at the end of 2015.
The company has a fleet of 26 vessels of which two are under construction. By way of comparison, in the autumn of 2004, the company had three vessels. The new tankers are scheduled to join the company’s fleet in the third quarter of 2016 and in the first quarter of 2017.
“Our objective is to have a strategy that is flexible and has benefits in both a strong tanker market and a weak one,” NAT said.
“After an acquisition of vessels or other forms of expansion, our objective is for the company to pay a higher dividend per share and produce higher earnings per share than had such an acquisition not taken place,” the company added.