HAMILTON, Bermuda, May 2, 2016 (GLOBE NEWSWIRE) -- Nordic American Tankers Limited ("NAT" or the "Company") announced today that
it has entered into an agreement to acquire four existing Suezmax sister vessels built in Japan at a world-class shipyard. The
aggregate price is $106 million. NAT expects the vessels to be delivered during May, June and July 2016.
Between July 2014 and January 2017 a total of 10 vessels have been added to the NAT fleet, including the previously announced
two newbuildings due for delivery in August 2016 and in January 2017. Going forward, this total of a 50% fleet increase within a
short time span can be expected to produce significantly increased cash flows and solid dividends compared with a smaller fleet.
The seller is a well-respected group that has owned the four more or less identical sister vessels since they were built. The fact
that they are sister vessels is a positive factor of significance. Two were built in 2004, one in 2003 and one in 2000.
Shipbuilding technology for crude oil tankers has not changed much over the last 20 years, so whether a ship has been around five
years or fifteen years or longer does not matter anywhere near as much as the quality of the ship itself. We would note, that
renewal of our fleet is a natural element on our agenda going forward. Our vessels remain first-class, and these four additional
tankers only enhance our fleet's reputation for safety and dependability. We are particularly confident about the technical quality
of the vessels. Members of NAT management, staff and board have comprehensive experience from Japan, having concluded business with
several of its high quality shipbuilders over decades.
The Company noted that the acquisition represents a natural step in the further development of Nordic American. By adding four more
ships to 30 units we increase the dividend capacity and bolster our earnings potential. Our well-defined and transparent operating
model, including one type of ships, dividend policy, strong balance sheet, are elements supporting the competitive position of the
Company.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENT
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide
prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of
historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and
is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate,"
"intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, our management's examination of historical operating trends, data contained in
our records and other data available from third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations,
beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter
rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and
world wide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs,
the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions
taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international
political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and
instances of off-hires and other important factors described from time to time in the reports filed by the Company with the
Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and
our reports on Form 6-K.
Contacts: |
Jan H. A. Moller, |
Head of Investor Relations & Financial Manager |
Nordic American Tankers Limited |
Tel: +47 33 42 73 00 or +47 90 11 53 75 |
|
Turid M. Sørensen, CFO & EVP |
Nordic American Tankers Limited |
Tel: +47 33 42 73 00 or +47 90 57 29 27 |
|
Gary J. Wolfe |
Seward & Kissel LLP, New York, USA |
Tel: +1 212 574 1223 |
|
Herbjørn Hansson, Chairman & CEO |
Nordic American Tankers Limited |
Tel: +1 866 805 9504 or +47 90 14 62 91 |
|
Web-site: www.nat.bm
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