Nordic Sprite Nordic American Tankers suezmax

Korean shipbuilder sells tanker to Nordic American for for $24.45M

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September 5, 2011

Nordic Sprite Nordic American Tankers suezmax

Nordic Sprite, image by Olivier Vitre

Nordic American Tankers Ltd. (NAT) said it agreed to buy a double-hull suezmax tanker built at Samsung Heavy Industries (010140.SE) for $24.45 million.

Delivery is expected no later than Oct. 5 and will be financed from company resources.

The company, which at the end of 2010 had 15 vessels for use in the spot market, is expected to have a fleet of 20 vessels upon delivery of the new ship, bolstering its dividend and earnings capacity going forward, it said.

Nordic American said it is seeking to increase its dividend and earnings capacity through further expansion, but is in no rush. It said it believes its strong balance sheet, well defined and transparent operating model will provide it with a solid competitive position going forward.

Last month, Nordic American reported a loss of $10 million, or 21 cents a share, from a profit of $7.9 million, or 17 cents a share, a year earlier, as average spot rates fell and operating costs rose.

The tanker sector has been helped by oil and freight demand recovering from last year, but companies face increased capacity as the worldwide fleet expands.

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