Tanker Operator Declares its "Best Results" in Years

by Ship & Bunker News Team
Monday May 12, 2014

Suezmax operator Nordic American Tankers (NAT) reports that the first quarter of 2014 "produced the best results we have seen in several years."

Time charter rates were much higher than in the previous quarter, at $26,300 per day per vessel compared with $14,100 in Q4 2013, but the rates remained highly volatile and have fallen since the end of Q1.

NAT reported voyage revenues of $94.7 million in Q1 2014, up from $63.6 million year-over year, and net operating income of $6.4 million compared with a loss of $29.4 million in Q1 2013.

The company used the weak markets of 2012 and 2013 to schedule drydocking, maintenance, and improvement for its ships

"Going forward, drydocking costs and off-hire (time out of service) should be significantly reduced and the number of revenue days should increase correspondingly as there are no more scheduled drydockings for 2014," NAT said.

The company says it is continuing to work toward cost efficiencies on its vessels.

NAT reports that, while seaborne crude oil imports into the U.S. have decreased due to increases in domestic production, increased imports into the Far East have more than outweighed the decline.

Some analysts have speculated that the U.S. may begin allowing the export of crude oil, potentially changing trade patterns for crude tankers.

Ship & Bunker News Team
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