- Earnings per share (EPS) has been: -$0.42 for 3Q2016, -$0.36 for 2Q2016 and -$0.13 for 3Q2015.
- EPS does not take into account financial risk. i.e. the debt level of a company.
- Operating cash flow per share has been: -$0.16 for 3Q2016, -$0.12 for 2Q2016 and $0.04 for 3Q2015.
- NAO had at the end of 3Q2016 total net debt of $127.5m for its ten vessel fleet, or about $12.7m per vessel. The credit facility of $150m matures in March 2020.
- NAO has a low cash breakeven level of about $11,500 per day per vessel, including financing and G&A costs.
Net Loss (accountingwise) was -$8.6m in 3Q2016. In 2Q2016 and 3Q2015 the comparable figures were -$7.4m and -$3.1m, respectively.The Company's operating cash flow was -$3.4m in 3Q2016. In 2Q2016 and 3Q2015 operating cash flow was -$2.5m and $1.0m, respectively. At the end of 3Q2016, net debt per NAO vessel was $12.7m. NAO has in place until early 2020 a non-amortizing credit facility of $150m. Several service companies in our sector are in a difficult financial position. Going forward, NAO sees opportunities for expansion. 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. As reported July 18, 2016, Marianne Lie, who has a wealth of experience from the offshore sector and from top positions in other companies, assumed position as Executive Vice Chair of NAO. Tor Øyvind Bjørkli, the Managing Director of NAO, is reporting to Ms. Lie. This reorganization strengthens NAO. For further details on our financial position for 3Q2016, 2Q2016 and 3Q2015, please see later in this release. Our 2015 Annual Report (Form 20-F) contains a large amount of information about NAO. This report was filed with the SEC March 23, 2016 and can be found on our web site www.nao.bm. The Fleet Our fleet is comprised of ten high-quality PSVs. All our trading vessels operate in the UK and in the Norwegian sectors of the North Sea. The vessels may operate in either sector or elsewhere. The significant fuel efficiency, and corresponding low emissions of our ships are attractive features for our clients. The Company's objective is to ensure spot or term employment for the fleet. The specifications of the Company's vessels are by and large the same. Strategy Going Forward The main elements of NAO's strategy is based on quarterly dividends, low debt, low G&A costs, high liquidity in the stock and full transparency. Growth of the fleet is a central part of our strategy
Our dividend policy has the objective to achieve a competitive cash yield and a positive Total Return 2 over time.NAO is firmly committed to protecting its underlying earnings, dividend potential and strong balance sheet. We shall endeavor to safeguard and further strengthen the position in a deliberate, predictable and transparent way. We encourage prospective investors interested in the Offshore Supply Vessel sector to consider buying shares in NAO. * * * * * Link to the graph: http://hugin.info/159489/R/2056555/770316.pdf CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 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.Contacts:
|Herbjørn Hansson, ChairmanNordic American Offshore Ltd.Tel: +1 866 805 9504 or +47 90 14 62 91||Jan H. A. Moller, Head of I&R & Financial ManagerNordic American Offshore Ltd.Tel: +47 33 42 73 00 or +47 90 11 53 75|
|Marianne Lie, Executive Vice ChairNordic American Offshore Ltd.Tel.: +47 91 64 55 06||Tor-Øyvind Bjørkli, Managing DirectorNordic American Offshore Ltd.Tel: +47 90 62 70 14|
|Turid M. Sørensen, CFONordic American Offshore Ltd.Tel: +47 33 42 73 00 or +47 90 57 29 27||Gary J. WolfeSeward & Kissel LLPNew York, USATel: +1 212 574 1223|