NAT Upbeat on Q2 after Good Start
Image courtesy: DNV GLNordic American Tankers (NAT) wrapped up the first quarter of 2016 with an operating cash flow of USD 55.9 million.
The figure is somewhat higher than USD 51 million posted in Q1, 2015, however the amount is pretty much in line with last year’s quarterly figures, which produced an operating cash flow of USD 212 million for the full year 2015 – the strongest year in NAT’s history.
NAT said that the “good Q1 results” were due to a cash break-even rate below USD 12,000 per day per ship, a growing NAT Suezmax fleet and spot rates of about USD 36,000 per day, projecting a positive phase of development in the tanker market in the second quarter of 2016.
The company’s net income for the quarter totaled in USD 29.3 million, up from corresponding quarter in 2015 when it was USD 27.7 million, but somewhat lower that USD 30.1 million reported in Q4, 2015.
“NAT is firmly committed to protecting its underlying earnings and dividend potential. We shall endeavor to safeguard and further strengthen this position for our shareholders in a deliberate, predictable and transparent way. We encourage prospective investors interested in the crude tanker sector to consider buying shares in NAT,” the company said.
On May 2, 2016, NAT announced the acquisition of four existing Suezmax vessels which will be delivered to the company during May, June and July. Two were built in 2004, one in 2003 and one in 2000.
Including the four newly acquired vessels, NAT will have 28 vessels on the water and two newbuildings. No equity offerings are planned in conjunction with this 30 vessel fleet.
The construction of the two newbuildings for delivery in 3Q2016 and 1Q2017 is on schedule, NAT added.
