A letter out today from Herbjorn Hansson, CEO of Nordic American Tanker NAT is my excuse to get back to writing articles for this site. Sorry about the time off. Most of the letter just reiterates NAT’s position on no debt, stable finances and low overhead and per day break even. For those of us who own the stock, that is why we do.
What caught my eye is the quoted average tanker rates for the 2nd and 3rd quarters of 2009. The 2nd quarter had an average rate of $20,569 for Suezmax tankers. The 3rd quarter has been even worse with a daily average of just $12,932. This is still above breakeven for Nordic American, but has to be murder on Frontline.
I expect NAT to pay a quarter of less for the 3rd quarter dividend. With the way the rates have trended throughout the year I am pleasantly surprised the stock price is holding near $30. It appears that the market believes tanker rates will recover in the near future as economic recovery starts to pump up energy demand. The price of oil over the last several months seems to indicate a near term recovery in energy usage.
Interesting news from Nordic American Tanker
A letter out today from Herbjorn Hansson, CEO of Nordic American Tanker NAT is my excuse to get back to writing articles for this site. Sorry about the time off. Most of the letter just reiterates NAT’s position on no debt, stable finances and low overhead and per day break even. For those of us who own the stock, that is why we do.
What caught my eye is the quoted average tanker rates for the 2nd and 3rd quarters of 2009. The 2nd quarter had an average rate of $20,569 for Suezmax tankers. The 3rd quarter has been even worse with a daily average of just $12,932. This is still above breakeven for Nordic American, but has to be murder on Frontline.
I expect NAT to pay a quarter of less for the 3rd quarter dividend. With the way the rates have trended throughout the year I am pleasantly surprised the stock price is holding near $30. It appears that the market believes tanker rates will recover in the near future as economic recovery starts to pump up energy demand. The price of oil over the last several months seems to indicate a near term recovery in energy usage.
NAT Letter to Shareholders