NAT Continues Losses, Predicts Improvements

The company is improving its fleet's fuel economy

Despite continuing losses that rose above $32 million in the fourth quarter of 2012, Nordic American Tankers Ltd. [NYSE:NAT] (NAT) says in its latest earnings report that it is well positioned to capitalise on improvements in the industry.

The tanker company said it has kept its balance sheet strong so that it can add more tankers while the ships are at historically low prices.

For all of 2012, the company had a net loss of $73.2 million on net voyage revenue of $92 million, compared with a net loss of $72.3 million and net revenues of $79.9 million the previous year.

NAT reported an average daily rate of $10,700 during the fourth quarter of 2012, down from around $12,000 in Q4 2011 and says it is paying a dividend of $0.16 per share.

"When the market turns, which may happen quickly, the dividend can be expected to increase," the company said.

"Our fleet is in excellent technical and operational condition, and NAT has the financial resources to maintain it that way."

NAT predicted that a recovery in the world economy and growth in Asia will improve demand and rates.

The company said seaborne crude oil imports to the U.S. have decreased in the recent past, and growth in shale oil and tar sands oil projects may reduce the nation's demand, but it said changes in trade patterns are leading to longer voyages overall.

NAT also said that, while European economies continue to struggle, activity in Asia is growing and crude imports to China hit a record high in 2012.

The company said in November that it is moving "aggressively" to reduce fuel consumption through improvements to its ships, and in this latest report said it is continuing to add vessel equipment to reduce its energy consumption.