NORDIC AMERICAN TANKERS LIMITED
|
||
(registrant)
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||
Dated: August 16, 2019
|
By:
|
/S/ HERBJØRN HANSSON
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Herbjørn Hansson
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||
Chairman, President, and Chief Executive Officer
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||
• |
NAT IS IN A GOOD POSITION WITH SOLID PROSPECTS. THE FIRST HALF OF 2019 WAS MUCH BETTER THAN THE FIRST HALF OF 2018. THE TIME CHARTER EQUIVALENT IN THE FIRST HALF OF 2018 WAS USD 10,850 PER DAY PER SHIP AND
THE FIRST HALF OF 2019 PRODUCED USD 20,414 PER DAY PER SHIP.
|
• |
THERE ARE SEVERAL INDICATORS THAT THE TANKER MARKET IS GOING UP. THE MOST OBVIOUS CAN BE SEEN IN THE ABOVE YEAR-ON-YEAR NUMBERS, CLEARLY SHOWING THAT THE TIDE HAS TURNED.
|
• |
ON MAY 29, 2019, WE ENTERED INTO A 12-15 MONTH TIME CHARTER WITH THE MAJOR ENERGY COMPANY, EQUINOR. THE TIME CHARTER STARTS DURING AUGUST 2019.
|
• |
POLITICAL UNREST IS NORMALLY POSITIVELY IMPACTING DEMAND FOR OUR SHIPS. THE RELATIONSHIP BETWEEN CHINA AND THE US SHOULD BE SEEN IN THIS LIGHT. THIS FEATURE OF THE TANKER MARKET IS NOT ALWAYS UNDERSTOOD BY
OBSERVERS.
|
• |
EXPORTS OF OIL FROM THE US CONTINUES TO INCREASE, ALSO PROVIDING ADDITIONAL EMPLOYMENT FOR OUR SUEZMAX SHIPS.
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• |
AS ALREADY ANNOUNCED, NAT WAS FULLY REFINANCED DURING THE FIRST HALF OF 2019. NAT BORROWED ABOUT $306 MILLION FROM ONE LENDER, ALLOWING THE COMPANY TO RETIRE IN FULL THE DEBT FROM THREE OTHER BANK LENDERS.
THIS IMPORTANT CAPITAL TRANSACTION WAS FINALIZED FEBRUARY 12, 2019. WE HAVE A FIRST CLASS RELATIONSHIP WITH THE TEXAS BASED LENDER, HAVING PROVIDED THE LOAN.
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• |
WE ARE SHARPENING OUR MARKETING EFFORTS TO COMMUNICATE EVEN MORE EFFECTIVELY WITH INVESTORS. NAT HAS ABOUT 100,000 SHAREHOLDERS ALL OVER THE WORLD, WITH A MAJORITY IN THE US.
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• |
WE ANNOUNCED THE 88TH CONSECUTIVE QUARTERLY DIVIDEND DISTRIBUTION JULY 26, 2019. THE DIVIDEND THIS TIME IS 1 CENT PER
SHARE, PAYABLE SEPTEMBER 20, 2019, TO SHAREHOLDERS OF RECORD AUGUST 30, 2019.
|
• |
DETAILED FINANCIAL INFORMATION FOR THIS AND OTHER PERIODS IS INCLUDED LATER IN THIS REPORT.
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• |
NAT HAS DECIDED TO INTRODUCE A REVERSE STOCK SPLIT (1 TO 5), WITH THE OBJECTIVE OF MAKING NAT MORE ATTRACTIVE FOR INVESTORS. THE FORMALITIES ARE PLANNED TO BE PUT IN PLACE LATER IN 2019.
|
CONSOLIDATED CONDENSED STATEMENTS OF OPERATION (UNAUDITED)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||
Amounts in USD ‘000
|
Jun. 30, 2019
|
Mar. 31, 2019
|
Jun. 30, 2018
|
Jun. 30, 2019
|
Jun. 30, 2018
|
|||||||||||||||
Net Voyage Revenue
|
30,653
|
53,629
|
27,008
|
84,281
|
56,624
|
|||||||||||||||
Vessel Operating Expenses
|
(15,947
|
)
|
(15,969
|
)
|
(23,269
|
)
|
(31,916
|
)
|
(45,294
|
)
|
||||||||||
General and Administrative Expenses
|
(3,885
|
)*
|
(3,568
|
)*
|
(2,815
|
)*
|
(7,453
|
)**
|
(6,480
|
)
|
||||||||||
Depreciation Expenses
|
(15,742
|
)
|
(15,785
|
)
|
(14,575
|
)
|
(31,527
|
)
|
(29,646
|
)
|
||||||||||
Impairment Loss on Vessels
|
0
|
0
|
(2,168
|
)
|
0
|
(2,168
|
)
|
|||||||||||||
Gain (Loss) Disposal of Vessels
|
0
|
0
|
(1,716
|
)
|
0
|
(1,716
|
)
|
|||||||||||||
Operating Expenses
|
(35,574
|
)
|
(35,322
|
)
|
(44,543
|
)
|
(70,896
|
)
|
(85,304
|
)
|
||||||||||
Net Operating Earnings (Loss)
|
(4,921
|
)
|
18,307
|
(17,535
|
)
|
13,385
|
(28,680
|
)
|
||||||||||||
Interest Income
|
63
|
83
|
81
|
147
|
205
|
|||||||||||||||
Interest Expense
|
(9,532
|
)
|
(10,862
|
)
|
(8,101
|
)
|
(20,394
|
)
|
(15,212
|
)
|
||||||||||
Other Financial Income (Expenses)
|
(593
|
)
|
(1,885
|
)
|
(426
|
)
|
(2,479
|
)
|
(752
|
)
|
||||||||||
Equity Loss in Associate
|
0
|
0
|
(1,206
|
)
|
0
|
(2,422
|
)
|
|||||||||||||
Total Other Expenses
|
(10,062
|
)
|
(12,664
|
)
|
(9,652
|
)
|
(22,726
|
)
|
(18,181
|
)
|
||||||||||
Net Gain (Loss)
|
(14,983
|
)
|
5,643
|
(27,187
|
)
|
(9,341
|
)
|
(46,861
|
)
|
|||||||||||
Basic Earnings per Share
|
(0.11
|
)
|
0.04
|
(0.19
|
)
|
(0.07
|
)
|
(0.33
|
)
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|||||||||||
Basic Weighted Average Number of Common Shares Outstanding
|
141,969,666
|
141,969,666
|
141,969,666
|
141,969,666
|
141,969,666
|
|||||||||||||||
Common Shares Outstanding
|
141,969,666
|
141,969,666
|
141,969,666
|
141,969,666
|
141,969,666
|
*) |
The G&A for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018 include non-cash charges of $0.6m, $0.2m and ($0.1m), respectively, which are charges related to share based compensation and pension cost.
|
**) |
The G&A for the six months ended June 30, 2019, and June 30, 2018, include non-cash charges of $0.8m and $0.4m, respectively, which are charges related to share based compensation and pension cost.
|
CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
|
||||||||||||
Amounts in USD ‘000
|
Jun. 30, 2019
|
Jun. 30, 2018
|
Dec. 31, 2018
|
|||||||||
Cash and Cash Equivalents
|
42,062
|
46,482
|
49,327
|
|||||||||
Restricted Cash
|
7,337
|
*
|
0
|
0
|
||||||||
Accounts Receivable, net
|
15,442
|
21,636
|
22,594
|
|||||||||
Prepaid Expenses
|
3,012
|
4,019
|
3,830
|
|||||||||
Inventory
|
22,088
|
21,771
|
20,291
|
|||||||||
Voyages in Progress
|
7,462
|
13,519
|
15,075
|
|||||||||
Other Current Assets
|
2,790
|
4,082
|
1,828
|
|||||||||
Vessels Held for Sale
|
0
|
55,376
|
0
|
|||||||||
Total current assets
|
100,193
|
166,885
|
112,945
|
|||||||||
Vessels, Net
|
923,275
|
832,599
|
953,758
|
|||||||||
Deposit for vessels
|
0
|
50,130
|
0
|
|||||||||
Investment Securities
|
2,748
|
0
|
4,197
|
|||||||||
Investment in Associate
|
0
|
9,443
|
0
|
|||||||||
Other Non-current Assets
|
1,982
|
15,285
|
211
|
|||||||||
Total non-current assets
|
928,005
|
907,457
|
958,166
|
|||||||||
Total Assets
|
1,028,198
|
1,074,342
|
1,071,111
|
|||||||||
Accounts Payable
|
5,493
|
6,140
|
3,575
|
|||||||||
Accrued Voyage Expenses
|
7,379
|
6,217
|
5,063
|
|||||||||
Other Current Liabilities
|
6,389
|
17,759
|
8,960
|
|||||||||
Current portion of Long Term Debt
|
20,116
|
**
|
27,221
|
***
|
18,692
|
|||||||
Total Current liabilities
|
39,377
|
57,337
|
36,290
|
|||||||||
Long-term Debt
|
390,378
|
346,561
|
417,836
|
|||||||||
Deferred Compensation Liability
|
15,440
|
15,732
|
14,954
|
|||||||||
Total Non-current Liabilities
|
405,818
|
362,293
|
432,790
|
|||||||||
Shareholders’ Equity
|
583,003
|
654,712
|
602,031
|
|||||||||
Total Liabilities and Shareholders’ Equity
|
1,028,198
|
1,074,342
|
1,071,111
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||
Amounts in USD ‘000
|
Jun. 30, 2019
|
Mar. 31, 2019
|
Jun. 30, 2018
|
Jun. 30, 2019
|
Jun. 30, 2018
|
|||||||||||||||
Voyage Revenue
|
66,161
|
88,283
|
73,435
|
154,444
|
140,030
|
|||||||||||||||
Voyage Expense
|
(35,508
|
)
|
(34,654
|
)
|
(46,427
|
)
|
(70,163
|
)
|
(83,406
|
)
|
||||||||||
Net Voyage Revenue (1)
|
30,653
|
53,629
|
27,008
|
84,281
|
56,624
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
Jun. 30, 2019
|
Mar. 31, 2019
|
Jun. 30, 2018
|
Dec. 31, 2018
|
|||||||||||||
Net Operating Earnings (Loss)
|
(4,921
|
)
|
18,307
|
(17,535
|
)
|
(38,616
|
)
|
|||||||||
Depreciation Expense
|
15,742
|
15,785
|
14,575
|
60,695
|
||||||||||||
Impairment Loss on Vessels and Goodwill
|
0
|
0
|
2,168
|
2,168
|
||||||||||||
(Gain) Loss Disposal of Vessels
|
0
|
0
|
1,716
|
6,619
|
||||||||||||
Share Based Compensation and Pension Cost
|
632
|
198
|
(81
|
)
|
140
|
|||||||||||
Adjusted Net Operating Earnings (2)
|
11,453
|
34,290
|
843
|
31,006
|
(1) |
Net voyage revenues represents voyage revenues less voyage expenses such as bunker fuel, port fees, canal tolls and brokerage commissions. Net voyage revenues is included because certain investors use this data to measure a shipping
company’s financial performance. Net voyage revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company’s
performance required by accounting principles generally accepted in the United States.
|
(2) |
Adjusted Net Operating Earnings represents Net Operating Earnings (Loss) before depreciation, impairment, (gain) loss disposal of vessels and non-cash administrative charges. Adjusted Net Operating Earnings is included because
certain investors use this data to measure a shipping company’s financial performance. Adjusted Net Operating Earnings is not required by accounting principles generally accepted in the United States and should not be considered as an
alternative to net income or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States.
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)
|
Six Months ended
|
Twelve Months ended
|
||||||||||
Amounts in USD ‘000
|
Jun. 30, 2019
|
Jun. 30, 2018
|
Dec. 31, 2018
|
|||||||||
Net Cash Provided by (Used in) Operating Activities
|
40,832
|
(12,743
|
)
|
(16,103
|
)
|
|||||||
Investment in Vessels
|
(557
|
)
|
(3,097
|
)
|
(4,810
|
)
|
||||||
Sale of Vessels
|
0
|
25,234
|
89,624
|
|||||||||
Other
|
0
|
(60
|
)
|
(60
|
)
|
|||||||
Return from Investments
|
0
|
300
|
300
|
|||||||||
Net Cash Provided by (Used in) Investing Activities
|
(557
|
)
|
22,377
|
85,054
|
||||||||
Proceeds from Issuance of Common Stock
|
0
|
(16
|
)
|
0
|
||||||||
Proceeds from Vessel Financing Newbuildings
|
0
|
0
|
12,505
|
|||||||||
Proceeds from Borrowing Activities
|
300,000
|
0
|
(78,242
|
)
|
||||||||
Repayments on Credit Facility
|
(313,400
|
)
|
(15,769
|
)
|
(2,361
|
)
|
||||||
Repayments of Vessel Financing Newbuildings
|
(3,566
|
)
|
0
|
0
|
||||||||
Repayments of Borrowing Facility
|
(6,378
|
)
|
0
|
0
|
||||||||
Transaction Costs Borrowing Facilities
|
(6,904
|
)
|
0
|
0
|
||||||||
Dividends Distributed
|
(9,936
|
)
|
(5,678
|
)
|
(9,936
|
)
|
||||||
Net Cash Provided by (Used in) Financing Activities
|
(40,184
|
)
|
(21,463
|
)
|
(78,034
|
)
|
||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
91
|
(11,829
|
)
|
(9,083
|
)
|
|||||||
Effect of exchange rate changes on Cash
|
(19
|
)
|
(48
|
)
|
51
|
|||||||
Cash and Cash Equivalents at Beginning of Period
|
49,327
|
58,359
|
58,359
|
|||||||||
Net Deposit of Restricted Cash
|
(7,337
|
)*
|
0
|
0
|
||||||||
Cash and Cash Equivalents at End of Period
|
42,062
|
46,482
|
49,327
|
|||||||||