World News
Weak Crude, Bunker Prices Buoying NAT Results
Tanker rates have remained strong due to the ongoing weak price of crude oil, leading to a positive impact on Nordic American Tanker Ltd (NAT)'s bottom line in the first quarter of 2015, the company announced Monday.
The Bermuda-based tanker company posted an earnings per share (EPS) of $0.34, beating consensus estimates of $0.27, according to reports.
Revenues also jumped to $69.6 million compared to $45 million the year before, while earnings also increased to $30.3 million compared to $4 million in the first quarter of 2014.
NAT said tanker rates averaged $37,000 per day per vessel during the quarter, much higher than the $26,300 rate the company saw the same time last year.
Low bunker prices also played a part in the result, with NAT noting that "in the last six months bunker prices have fallen by more than 50 percent, impacting our results positively."
"Nordic American Tankers has an operating model that is sustainable in both a weak and a strong tanker market," said the company.
"Accretive fleet growth, low net debt per vessel and quarterly dividend payments are central elements of the strategy."
The company currently has a fleet of 24 Suezmax vessels, two of which were recently ordered in December 2014.
NAT also said that 14 of its vessels were inspected by clients during the quarter, coming out with an "extraordinarily good result" of 2.3 observations on average.
The company added that it would also be continuing to focus on cost efficiency aboard its vessels and in administration.
Although the company admits that U.S. imports of oil have decreased, "the economies of the Far East generally show continuing growth, although at a slower pace than before," while European crude imports have also recently shown a rising trend.
NAT CEO Herbjørn Hansson first pointed out the positive effects of falling oil on the company late last year, having said at the time that "volumes of oil being transported are increasing."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 485.00 | 5.50 | 673.00 | 7.00 |
| Rotterdam | 459.00 | 0.50 | 680.50 | 2.00 |
| Houston | 481.00 | 6.00 | 682.00 | 10.00 |
| Fujairah | 482.00 | 8.00 | 729.50 | 4.50 |
| Global 20 Ports Average | 520.50 | 3.50 | 765.50 | 6.50 |
| Global 4 Ports Average | 476.50 | 5.50 | 691.00 | 5.00 |
| Global Average Bunker Price | 552.50 | 12.00 | 805.50 | 3.00 |
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