NAT: Two 6-year Time Charters concluded for Suezmax Newbuildings

Nordic American Tankers (NAT)

Nordic American Tankers has concluded two six-year Time Charters for two Suezmax newbuildings for delivery in May and June this year.

The contracts have been entered into with ASYAD Shipping Company and will commence upon delivery of the two NAT suezmaxes from the shipyard in South Korea. With the recent sales of two vessels, the NAT fleet now count 23 vessels.

The time charter rates concluded will secure a stable revenue stream over the six years, and generate an aggregate revenue of more than USD 100 million during these charters. The cumulative cash flow, after operating expenses, from these contracts will equal in excess of 60 percent of the original price of the vessels.

Thanks to the quality of our fleet and our maintenance schedules, the NAT suezmaxes are able to operate efficiently for more than 25 years.

Dr. Ibrahim Al Nadhairi CEO of ASYAD Shipping & Drydock Services said:

“We are pleased to have entered into these contracts with such a well reputed company as NAT, listed on the New York Stock exchange. Further projects may also be developed between our respective companies. From ASYAD Shipping perspective this will be a further expansion of the crude transportation verticals. This new partnership will leverage Asyad shipping readiness to evolve its leading position in shipping and logistics services. Morever, it will support its operation capabilities to secure more business opportunities for Oman and make it a global logistics hub”.

Mr Herbjorn Hansson of Nordic American Tankers commented:

“Our business is expanding in the Middle East, which is an important area for our operations. We regard this cooperation with Oman interests as a substantial step forward to cementing and building out our position in the area. This may only be the beginning.”

The origin of the NYSE listed Nordic American Tankers Ltd started out with three vessels on seven year charters back in 1997 and formed the back-bone of our growth and expansion.

The contracts we now have concluded, are in line with our conservative policy of relying on both spot and long-term charter markets to navigate in the tanker business.

Upon delivery of the two new-buildings, NAT will have a number of its vessels on long term charters. Contracts of a long term nature, is an insurance policy and is strengthening NAT.

The other NAT ships trading in the spot market, will reap the benefits on that front as the market improves.

Source: Nordic American Tankers

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