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Nordic American Tankers Limited: Nordic American Offshore Ltd. (NYSE:NAO) 2Q2014 Dividend and Earnings Report: The Company is successfully listed on the NYSE as of June 12, 2014.

2014-08-06 12:45:00
Ticker Giełda ISIC Kraj Miasto
XNYS Norway Hamilton

Link to the complete 2nd Quarter 2014 report:


Hamilton, Bermuda, August 6, 2014.

Press release about Nordic American Offshore Ltd.

Nordic American Offshore Ltd. ("NAO" or "the Company") earlier announced that it

has declared a dividend of $0.45 per share for 2Q2014. This is the same as for

1Q2014. The record date is August 18, 2014 and the payment of dividend is

expected to take place on or about August 29, 2014.  Given that NAO was just

established at the end 2013, it is gratifying indeed that the Company has been

able to pay dividend so soon.

The Company had a successful IPO on the New York Stock Exchange in June 2014,

raising net proceeds of around $100 million. After the IPO, the shares issued in

the November 2013 private placement, which traded on the Oslo OTC market, were

exchanged for NYSE traded shares. At the time of this report, the total

sharecount is 23,431,370.

Following the previously announced Letters of Intent, the Company has entered

into firm newbuilding contracts with Vard Aukra shipyard in Norway for the

construction of two high-spec PSVs (platform supply vessels), which are expected

to be delivered to us in the third quarter of 2015. These vessels are in

addition to the two PSV newbuildings from the Ulstein yard that are expected to

be delivered in January 2015. The Company now has four vessels on order.

Key points to consider:

* Earnings per share in 2Q2014 were $0.23 compared with $0.10 for 1Q2014. The

weighted average number of shares was 17,620,124 in 2Q2014 as against

16,666,666 in 1Q2014.

* Net Income came to $4.1 million in 2Q2014 compared with $1.7 million in

1Q2014. Operating cash flow[1] was $7.7 million vs $6.5 million in 1Q2014.

* The Company has at the time of this report no net debt and its $60 million

credit facility is undrawn.

* The IPO in June 2014 strengthened the equity of the Company by about $100

million. Since then the shares have increased in value while trading on the


* NAO has a capital base to increase its fleet from the present six vessels to

ten by September 2015.

* Our vessels were fully utilized this quarter, a reflection of the quality

and standard of our fleet and the Company's commercial strategy.

* Mr. Tor-?yvind Bj?rkli joined the Company as CEO in April 2014. Mr. Bj?rkli

has extensive experience, a long track-record and well-established

relationships in the oil/offshore industry. This will be a significant

benefit to NAO.

Financial Information

The Board has declared a cash dividend of $0.45 per share for 2Q2014 to

shareholders of record as of August 18, 2014. The payment date is about August

29, 2014.

Net income for 2Q2014 was $4.1 million. Our net income of $1.7 million for the

first quarter of 2014 was impacted by a tax charge on operations of $1.2

million. We do not expect that such a charge will be incurred going forward. In

March 2014, NAO entered into the UK Tonnage Tax system. Our fleet currently

operates in the North Sea.

The Company's operating cash flow was $7.7 million in 2Q2014, compared with $6.5

million for 1Q2014.

Included in the G&A costs is about $0.4 million representing direct costs

associated with the start-up of NAO.

Including a planned expansion of the credit facility, the Company has the

financial resources to take delivery of its four newbuildings on order. We do

not expect to issue equity in connection with the delivery of these


As a matter of policy, the Company will always try to keep a strong balance

sheet with low net debt and a focus on limiting the Company's financial risk. At

the end of 2Q2014, net debt per NAO vessel in operation was zero.

The Company has in place a non-amortizing credit facility of $60 million, which

is undrawn at this time. Net working capital and undrawn amounts of the credit

facility amounted to about $128 million.

We concentrate on keeping our vessel operating costs low, while always

maintaining our strong commitment to safe operations. As we expand our fleet, we

do not anticipate that our administrative costs will rise correspondingly.

Our primary objective is to enhance total return for our shareholders, including

our quarterly dividend. The average rate achieved on the fleet is around


The Fleet

Our fleet is comprised of ten high-quality PSVs including four newbuildings. We

currently have six vessels in operation, all in the North Sea. Three are

operating in the UK sector and three are operating in the Norwegian Sector. The

vessels to be delivered next year may operate in either sector or elsewhere.

Please see the vessels and employment profile below.

Vessel Built Charterer     Duration - firm periods

Blue Fighter 2012 Apache February 2015

Blue Prosper 2012 Apache November 2014

Blue Power 2013 BG UK April 2018

Blue Thunder 2013 Statoil October 2014

Blue Guardian     2013 Statoil October 2014

Blue Protector 2013 Statoil August 2014

Blue Viking Jan. 2015     N/A

Blue Storm Jan. 2015 N/A

Blue TBN I Jul. 2015 N/A

Blue TBN II Sep. 2015 N/A

The Company's objective is to ensure term employment for the fleet, including

for the newbuildings. The specifications of the fleet are by and large of the

same nature. NAO will seek to grow the fleet further with vessels matching our

clients' requirements. The expected delivery time for the newbuildings is listed


The PSV Market

The Company believes the market outlook for our PSVs is positive. An increased

number of drilling rigs creates demand for the Company's vessels. We expect a

well-balanced market going forward.

Several of our vessels are suitable for operations in Arctic conditions. There

is increasing activity in the Arctic region which we expect will increase demand

for PSVs.

Strategy Going Forward

The main elements of the strategy of NAO have the same basis as Nordic American

Tankers Limited.

The Company intends to grow its fleet. After an acquisition of vessels or other

forms of expansion, the Company should be able to pay a higher dividend per

share and produce higher earnings per share than had such an acquisition not

taken place.

Our dividend policy will continue to enable us to achieve a competitively priced

risk adjusted cash yield  and a positive total return over time compared with

that of other companies.

NAO is firmly committed to protecting its underlying earnings and dividend


Our Company is well positioned. We shall endeavor to safeguard and further

strengthen the position for our shareholders in a deliberate, predictable and

transparent way.

We encourage investors who seek exposure to the Offshore Supply Vessel sector to

consider shares in NAO.

* * * * *

Link to the graph: http://hugin.info/201/R/1846856/643947.pdf


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," "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 PSV

market, as a result of changes in the general market conditions of the oil and

natural gas industry which influence charter hire rates and vessel values,

demand in platform supply vessels, our operating expenses, including bunker

prices, dry docking and insurance costs, governmental rules and regulations or

actions taken by regulatory authorities as well as potential liability from

pending or future litigation, general domestic and international political

conditions, potential disruption of shipping routes due to accidents or

political events, the availability of financing and refinancing, vessel

breakdowns and instances of off-hire and other important factors described from

time to time in the reports filed by the Company with the Securities and

Exchange Commission.


Tor-?yvind Bj?rkli, Chief Executive Officer

Nordic American Offshore Ltd.

Tel: +47 90 62 70 14

Jacob Ellefsen, Manager, IR and Research, Monaco

Nordic American Offshore Ltd.

Tel: + 377 93 25 89 07 or + 33 678 631 959

Turid M. S?rensen, Chief Financial Officer

Nordic American Offshore Ltd.

Tel: +47 90 57 29 27

Gary J. Wolfe

Seward & Kissel LLP, New York, USA

Tel: +1 212 574 1223

Herbj?rn Hansson, Executive Chairman

Nordic American Offshore Ltd.

Tel:  +1 866 805 9504 or + 47 901 46 291

[1] Operating cash flow is a non-GAAP number. Please see later in this

announcement for a reconciliation of operating cash flow to income from vessel


2nd Quarter 2014 Result:


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Source: Nordic American Tankers Limited via GlobeNewswire