This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nordic American Tankers Limited (NYSE:NAT) -- Letter To Shareholders From The Chairman & CEO. Improved Market Conditions For Our Suezmax Tankers.

Stocks in this article: NAT

HAMILTON, Bermuda, Jan. 10, 2014 (GLOBE NEWSWIRE) -- All the best for the new year which has started out very well for NAT. In my letter to you one month ago, December 10 2013, I pointed at the improved conditions in the Suezmax spot tanker market. The strong development has continued into 2014. We do not predict spot tanker rates. I would note, though, that we are very pleased to see this strongly improved rate picture for Suezmax spot tankers.

We often have requests for information about spot Suezmax rates. Below are the rates as quoted by Fearnleys Shipbrokers January 9 - yesterday. Rates achieved by NAT per day may differ from the quotes of shipbrokers. Rates are volatile, and may move both up or down from the levels listed below. Rates are given in dollars per day for vessels in the spot market. All the NAT vessels (20 Suezmaxes) are in top technical condition, trading in the spot voyage market. NAT is a supplier of ships above all to the large international oil companies.

Market rate estimates are often in an "ideal" world, with minimum waiting time. The rates do not with any precision indicate the rates achieved in the market by a shipping company.

Market estimates for five different routes January 9, 2014:

130 KT - WAFR/USG   $57,500   West Africa / US Gulf
130 KT - WAFR/USAC   $59,500   West Africa /US Atlantic Coast
135 KT - BSEA/UKCM   $76,500   Black Sea / UK/Continent
130 KT - CROSS MED   $76,500   Cross Mediterranean
130 KT - MED/USG   $55,500   Mediterranean/US Gulf

The cash break-even rate for the NAT vessels, including administrative and financing items is about $12,000 per day per ship. A strong tanker market does impact the dividend payments to shareholders in a positive way.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs