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HAMILTON, Bermuda - Nordic American Tankers Limited (NYSE:NAT), a shipping company with a market capitalization of $521 million, has announced the acquisition of a second Suezmax tanker, which, like its recently purchased sister vessel, was constructed in 2016 by Sungdong, a shipyard previously under Samsung’s control in South Korea. The latest addition is slated for delivery to NAT within April this year, following the expected end-of-March delivery of the first tanker.
This strategic expansion will bring NAT’s Suezmax fleet to a total of 21 vessels, reflecting the company’s ongoing plan to refresh its fleet by acquiring new ships and selling certain units. The purchase price for the new vessel is reported to be in the mid-to-high 60 million USD range. Both tankers are fully financed and anticipated to contribute to NAT’s earnings and dividend capacity. According to InvestingPro data, the company maintains impressive gross profit margins of 72% and a healthy current ratio of 1.65, indicating strong operational efficiency and financial stability.
NAT’s Chairman and CEO, Herbjorn Hansson, expressed optimism about the company’s position and its prospects for 2025, which is forecasted to be a year of significant activity for the firm. The company’s strategy is aligned with maintaining a fleet of well-maintained Suezmax tankers, which are large oil tankers capable of transiting the Suez Canal. InvestingPro analysis shows the company offers a substantial 9.76% dividend yield and has maintained dividend payments for 29 consecutive years, demonstrating a strong commitment to shareholder returns.
The company’s forward-looking statements in the announcement highlighted its expectations for the future, based on management’s examination of historical trends and data from various sources. However, NAT also acknowledged the inherent uncertainties and contingencies in such projections, which are beyond the company’s control, and emphasized that it does not commit to updating any forward-looking statement.
The announcement comes at a time when the global tanker market is influenced by various factors, including changes in oil production levels, worldwide oil consumption, and market conditions such as charter rates and vessel values. Notably, NAT’s stock has historically shown counter-market movement with a beta of -0.35, potentially offering portfolio diversification benefits. For detailed market analysis and additional insights, investors can access more than 10 exclusive ProTips through InvestingPro.
Nordic American Tankers Limited is a company listed on the New York Stock Exchange and has filed reports with the Securities and Exchange Commission, which detail its business and the factors that could impact its operations and financial performance.
The information provided in this article is based on a press release statement from Nordic American Tankers Limited.
In other recent news, Nordic American Tankers Limited has experienced significant developments. Alexander Hansson, the Non-Executive Vice Chairman, recently increased his stake in the company by purchasing 100,000 shares at $2.45 each, bringing his total holdings to 4.1 million shares. This transaction further solidifies the Hansson family’s position as the largest private shareholder group in the company, with a combined ownership of 8.65 million shares. In a related industry development, US-based shipping stocks, including Nordic American Tankers, saw a rise following the US government’s decision to blacklist China’s Cosco Shipping Holdings Co. and two shipbuilders over alleged military ties. This move is expected to increase scrutiny in the marine transport sector, leading to a positive market reaction for several American shipping firms. Analysts, including those from Bloomberg Intelligence, noted that while the blacklist does not impose specific penalties, it discourages US firms from engaging with these Chinese companies. The market’s response suggests optimism about the potential for American shipping companies to capitalize on any resulting opportunities. These recent developments highlight the dynamic and evolving nature of the shipping industry.
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