1.	NATURE OF BUSINESS

Nordic American Tankers Limited (“NAT”) was formed on June 12, 1995 under the laws of the Islands of Bermuda. The Company’s shares trade under the symbol “NAT” on the New York Stock Exchange. The Company was formed for the purpose of acquiring and chartering double-hull tankers.

In January 2013 NAT acquired Scandic American Shipping Ltd. (“Scandic” or the “Manager”) and Orion Tankers Ltd (“Orion”). Accordingly, these financial statements are presented on a consolidated basis for NAT and its subsidiaries (“the Company”). For the year ended December 31 2014 Scandic had the daily administrative, commercial and operational responsibility and Orion has provided services as the pool manager. The Group provided assistance in the formation of Nordic American Offshore in 2013, and Scandic has provided administrative services in 2014. For further details on the acquisition of the subsidiaries please see Note 3 and Note 9.

The Company is an international tanker company that currently owns 24 Suezmax tankers, including two newbuildings, an increase from three vessels owned in the autumn of 2004. The Company expects that the expansion process will continue over time and that more vessels will be added to its fleet. The 22 vessels the Company currently operates average approximately 156,000 dwt each.

In 2014, 2013 and 2012, the Company chartered all of its operating vessels into a spot market arrangement with Orion.

Tanker markets are typically stronger in the fall and winter months (the fourth and first quarters of the calendar year) in anticipation of increased oil consumption in the northern hemisphere during the winter months. Seasonal variations in tanker demand normally result in seasonal fluctuations in spot market charter rates.

The Company’s Fleet

The Company’s current fleet consists of 24 Suezmax crude oil tankers, including two newbuildings, and all of its 22 vessels in operation are employed in the spot market. The Company has entered into preliminary contracts for the construction of two Suezmax vessels expected to be delivered in the third quarter 2016 and first quarter 2017.

Vessel	Yard		Built	Deadweight Tons	Delivered to NAT
Nordic Harrier	Samsung		1997	151,459	August 1997
Nordic Hawk	Samsung		1997	151,475	October 1997
Nordic Hunter	Samsung		1997	151,401	December 1997
Nordic Voyager	Dalian New		1997	149,591	November 2004
Nordic Fighter	Hyundai		1998	153,328	March 2005
Nordic Freedom	Daewoo		2005	159,331	March 2005
Nordic Discovery	Hyundai		1998	153,328	August 2005
Nordic Saturn	Daewoo		1998	157,331	November 2005
Nordic Jupiter	Daewoo		1998	157,411	April 2006
Nordic Moon	Samsung		2002	160,305	November 2006
Nordic Apollo	Samsung		2003	159,998	November 2006
Nordic Cosmos	Samsung		2003	159,999	December 2006
Nordic Sprite	Samsung		1999	147,188	February 2009
Nordic Grace	Hyundai		2002	149,921	July 2009
Nordic Mistral	Hyundai		2002	164,236	November 2009
Nordic Passat	Hyundai		2002	164,274	March 2010
Nordic Vega	Bohai		2010	163,940	December 2010
Nordic Breeze	Samsung		2011	158,597	August 2011
Nordic Aurora	Samsung		1999	147,262	September 2011
Nordic Zenith	Samsung	2011		158,645	November 2011
Nordic Sprinter	Hyundai	2005		159,089	July 2014
Nordic Skier	Hyundai	2005		159,089	August 2014
Newbuild #1	Sungdong				August 2016
Newbuild #2	Sungdong				January 2017