Nordic American Tankers (NAT) booked a net loss of USD 34.2 million in the third quarter of this year, widening its loss when compared to the corresponding quarter from last year when the loss equaled USD 7.5 million.
For the first nine months ended September 2017, the company’s loss reached USD 53.6 million, a plunge from the profit reported in the same period last year which stood at USD 34.6 million.
The company said that the third quarter of the year proved to be challenging, as expected, resulting in lower earnings than in the preceding quarters.
The Time Charter Equivalent (TCE) for the Q3 was USD 10,600 per day per ship. In addition, the company had eight ships in drydocking during the quarter.
For the fourth quarter of this year, NAT said that it sees strengthening of tanker rates with recent fixtures at USD 20,000 per day. However, the company warned that this might change quickly both up and down amid market volatility.
With respect to its financial situation, the tanker owner and operator said that it was maintaining its financial soundness and that it was about to make its capital structure “more efficient to support its future growth.”
The company’s net debt at the end of the quarter stood at USD 341.5 million, or USD 11.4 million per vessel, which NAT claims is the lowest in the industry.
Speaking of the financing agreement signed for its three Suezmax newbuildings slated for delivery next year, NAT said it expects to finalize the deal by the end of this month.
Some 30% of the building price was paid in cash on contract signature in October 2016, while the remaining 70% will be financed through the deal with an unnamed international financial institution.
“We have agreed main terms and are in the final documentation stages for this financing. The above-mentioned financing is part of our strategy to explore alternative sources of funding to make our capital structure more efficient,” NAT added.
NAT’s fleet consists of 33, including 3 newbuilds, with an aggregate cargo capacity of 33 million barrels of crude oil, and an average age of 12 years.