NAT orders two Suezmaxes, sees cashflow increase

Vessels due for delivery in August 2016 and 2017, taking the fleet to 24. Company also reports improved tanker performance for early part of 2015
NAT orders two Suezmaxes, sees cashflow increase

Nordic American Tankers (NAT) has confirmed that two Suezmaxes it ordered in December 2014 will be delivered in August 2016 and January 2017 respectively, taking its fleet of vessels to 24. The announcment was made as part of NAT's Q4 statement that reported a rise in cashflow from operations.

The statement said that rates for the final quarter of 2014 had improved from the third quarter of last year and also from the final quarter of 2014, citing the drop in oil prices as having a positive effect on the tanker market in early 2015.

'Cashflow from operations was $24.5m, compared with $21.7m in 3Q2014, and $1.9m in 4Q2013. The Suezmax tanker market was much better in 2014 than in 2013. For 2014 as a whole, cashflow from operations was $77.7m compared with -$11.1m in 2013. So far rates achieved in 1Q2015 are well above the $30,000 per day range or about 40% higher than we achieved in 4Q2014. So far, about 50% of our transportation capacity has been booked for 1Q2015.'

The report meanwhile concluded that NAT's ongoing objective 'is to have a strategy that is flexible and has benefits in both a strong tanker market and a weak one,' adding that it hoped to be in a position to buy secondhand and newbuild vessels even if tanker rates were low.

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by Tom Holmes

Marine Trader Editor

Tom Holmes is the Editor of Marine Trader and readmt.com, the official publications of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to Marine Trader please get in touch.

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