Nordic American Offshore Ltd. (NYSE:NAO) - 3Q2016 Dividend And Earnings Report

Link to the complete 3rd Quarter 2016 report:   http://hugin.info/159489/R/2056555/770316.pdf

HAMILTON, Bermuda, Nov. 14, 2016 (GLOBE NEWSWIRE) --

The operating cash flow 1 for Nordic American Offshore Ltd. ("NAO" or "the Company") was -$3.4m in 3Q2016. NAO is better positioned compared with other companies in the industry.  During the quarter we saw a number of financial restructurings. Access to financing is a competitive advantage for NAO.

NAO has ten high-quality Platform Supply Vessels (PSVs) built in Norway in the period 2012-2016. At the end of the quarter seven of our ten vessels are in operation. We continue to focus on developing the relationship with our clients. NAO sees opportunities to grow the Company. Acquisitions have to be accretive for our earnings and dividends over time.

The basic features of NAO are similar to the successful structure of the NYSE listed Nordic American Tankers Limited.

The Board has declared a dividend of $0.03 per share for 3Q2016 to shareholders on record as of November 23, 2016. The payment of the dividend is expected to take place on or about December 7, 2016. Since its original establishment in late 2013, NAO has paid dividends for 11 consecutive quarters, totaling $2.57 per share, including the dividend to be paid about December 7, 2016.

The North Sea is at the present time the geographical market area for NAO.

Key points to consider:
  • 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.

Financial Information

The Board has declared a cash dividend of $0.03 per share for 3Q2016 to shareholders of record as of November 23, 2016. The payment date is on or about December 7, 2016.

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