NORDIC AMERICAN TANKERS LIMITED
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||
(registrant)
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||
Dated: June 28, 2019
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By:
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/S/ HERBJØRN HANSSON
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Herbjørn Hansson
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||
Chairman, President, and Chief Executive Officer
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||
• |
1Q2019 WAS A BUSY QUARTER AND ALSO SAW THE BEST RESULT FOR NAT SINCE 2Q2016
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• |
WITH THIS REPORT WE ANNOUNCE OUR 87TH CONSECUTIVE QUARTERLY DISTRIBUTION. THE DIVIDEND IS 0.03 CENTS PER SHARE PAYABLE ON JUNE 12, 2019,
TO SHAREHOLDERS ON RECORD MAY 28, 2019. IT IS OUR OBJECTIVE TO INCREASE THE DIVIDEND AS TANKER MARKETS IMPROVE.
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• |
THE TCE (TIME CHARTER EQUIVALENT) FOR OUR VESSELS IN 1Q2019 SAW AN IMPROVEMENT OF 30% FROM THE PREVIOUS QUARTER AND CAME IN AT AN AVERAGE
OF $26,025 PER DAY PER SHIP COMPARED TO $20,100 IN 4Q2018.
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• |
THE NET PROFIT FOR 1Q2019, (AFTER DEPRECIATION, G&A AND FINANCE CHARGES) TOTALED $5.6 MILLION COMPARED TO A NET LOSS OF $10.5 MILLION
IN 4Q2018 AND A NET LOSS OF $19.7 MILLION IN 1Q2018. THIS WAS $16.1 MILLION BETTER THAN THE PREVIOUS QUARTER AND $25.3 MILLION BETTER THAN SAME QUARTER LAST YEAR. THIS IS A SUBSTANTIAL IMPROVEMENT AND GIVES US A STRONG START TO THE YEAR.
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• |
THE NET OPERATING EARNINGS IMPROVED BY $12.9 MILLION FROM THE PREVIOUS QUARTER TOTALING $18.3 MILLION FOR 1Q2019 COMPARED TO $5.4 MILLION
IN 4Q2018.
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• |
A BETTER REFLECTION OF THE COMPANY’S CASH GENERATION, THE ADJUSTED NET OPERATING EARNINGS[1] WAS $34.3 MILLION FOR 1Q2019 COMPARED TO $23.6 MILLION IN 4Q2018 AND $4.4 MILLION IN 1Q2018. 1Q2019 WAS $10.7 MILLION BETTER THAN THE PREVIOUS QUARTER AND $29.9 MILLION BETTER THAN THE
SAME QUARTER LAST YEAR.
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• |
WE MADE NET CASH REPAYMENTS OF OUR DEBT OF $17.7 MILLION DURING THE QUARTER AND OUR NET DEBT AT MARCH 31, 2019 STOOD AT $341 MILLION EQUAL
TO $14.8 MILLION PER VESSEL.
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• |
DURING 1Q2019 WE REFINANCED OUR CREDIT FACILITY WITH A $306 MILLION SECURED LOAN AND REGISTERED A $40 MILLION ATM. TOGETHER WITH OUR 3
VESSELS DELIVERED AND FINANCED LAST YEAR, WE NOW HAVE A FINANCIAL STRUCTURE IN PLACE FOR ALL OF OUR 23 VESSELS WITH BETTER FLEXIBILITY AND LONGER MATURITIES THAN WE HAD ONLY A FEW MONTHS AGO.
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• |
LATER IN THIS REPORT WE HAVE INCLUDED RELEVANT FINANCIAL INFORMATION FOR NAT 1Q2019 AND FOR OTHER PERIODS.
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• |
WE EXPECT TO SEE VOLATILITY IN THE TANKER MARKET DURING 2019 DUE TO REFINERY ADJUSTMENTS THAT MUST BE MADE TO MEET THE NEW FUEL
REGULATIONS THAT COME INTO FULL EFFECT FROM 2020. THESE ADJUSTMENTS WILL BE POSITIVE FOR TANKER DEMAND AND WE EXPECT 2019 TO BE A BETTER YEAR THAN 2018. WITH THE MAJORITY OF OUR FLEET IN THE SPOT MARKET, NAT IS WELL POSITIONED FOR AN
IMPROVING TANKER MARKET IN THE COMING YEARS.
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(1) |
Adjusted Net Operating Earnings (Loss) represents Net Operating Earnings or Loss before depreciation and non-cash administrative charges. Please see later in this announcement for a
reconciliation of non-GAAP financial measures and Adjusted Net Operating Earnings (Loss).
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATION (UNAUDITED)
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Three Months Ended
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Twelve Months Ended
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||||||||||||||
Mar. 31, 2019
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Dec. 31, 2018
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Mar. 31, 2018
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Dec. 31, 2018
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|||||||||||||
Amounts in USD ‘000
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||||||||||||||||
Net Voyage Revenue
|
53,629
|
44,193
|
29,616
|
124,004
|
||||||||||||
Vessel Operating Expenses
|
(15,969
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)
|
(17,709
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)
|
(22,025
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)
|
(80,411
|
)
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||||||||
General and Administrative Expenses
|
(3,568
|
)*
|
(2,052
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)*
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(3,666
|
)*
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(12,727
|
)**
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||||||||
Depreciation Expenses
|
(15,785
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)
|
(15,771
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)
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(15,071
|
)
|
(60,695
|
)
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||||||||
Impairment Loss on Vessels
|
0
|
0
|
0
|
(2,168
|
)
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|||||||||||
Gain (Loss) Disposal of Vessels
|
0
|
(3,261
|
)
|
0
|
(6,619
|
)
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||||||||||
Operating Expenses
|
(35,322
|
)
|
(38,793
|
)
|
(40,762
|
)
|
(162,620
|
)
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||||||||
Net Operating Earnings (Loss)
|
18,307
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5,400
|
(11,146
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)
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(38,616
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)
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||||||||||
Interest Income
|
83
|
84
|
124
|
334
|
||||||||||||
Interest Expense
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(10,862
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)
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(10,494
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)
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(7,111
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)
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(34,549
|
)
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||||||||
Other Financial Income (Expenses)
|
(1,885
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)
|
(1,296
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)
|
(326
|
)
|
(14,808
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)
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Equity Loss in Associate
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0
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(4,161
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)
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(1,215
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)
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(7,667
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)
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|||||||||
Total Other Expenses
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(12,664
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)
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(15,867
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)
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(8,528
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)
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(56,690
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)
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||||||||
Net Gain (Loss)
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5,643
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(10,467
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)
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(19,674
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)
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(95,306
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)
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Basic Earnings per Share
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0.04
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(0.07
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)
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(0.14
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)
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(0.67
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)
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|||||||||
Basic Weighted Average Number of Common Shares Outstanding
|
141,969,666
|
141,969,666
|
141,969,666
|
141,969,666
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||||||||||||
Common Shares Outstanding
|
141,969,666
|
141,969,666
|
141,969,666
|
141,969,666
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*) |
The G&A for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018 include non-cash charges of $0.2m, $(0.8m) and $0.5m,
respectively, which are charges related to share based compensation and pension cost.
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**) |
The G&A for the twelve months ended December 31, 2018 include non-cash charges of $0. 1m. which are charges related to share based compensation and pension cost.
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CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
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||||||||
Amounts in USD ‘000
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Mar. 31, 2019
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Dec. 31, 2018
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||||||
Cash and Cash Equivalents
|
34,251
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49,327
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||||||
Restricted Cash
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2,572
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*
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0
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|||||
Accounts Receivable, net
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23,581
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22,594
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||||||
Prepaid Expenses
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3,931
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3,830
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||||||
Inventory
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22,032
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20,291
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||||||
Voyages in Progress
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20,372
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15,075
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||||||
Other Current Assets
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1,277
|
1,828
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||||||
Total current assets
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108,016
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112,945
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||||||
Vessels, Net
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938,398
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953,758
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Investment Securities
|
2,948
|
4,197
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||||||
Other Non-current Assets
|
2,079
|
211
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||||||
Total non-current assets
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943,425
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958,166
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||||||
Total Assets
|
1,051,441
|
1,071,111
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||||||
Accounts Payable
|
5,703
|
3,575
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||||||
Accrued Voyage Expenses
|
5,274
|
5,063
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||||||
Other Current Liabilities
|
7,862
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8,960
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||||||
Current portion of Long Term Debt
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19,844
|
**
|
18,692
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|||||
Total Current liabilities
|
38,683
|
36,290
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||||||
Long-term Debt
|
395,669
|
417,836
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||||||
Deferred Compensation Liability
|
14,956
|
14,954
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||||||
Total Non-current Liabilities
|
410,625
|
432,790
|
||||||
Shareholders’ Equity
|
602,133
|
602,031
|
||||||
Total Liabilities and Shareholders’ Equity
|
1,051,441
|
1,071,111
|
* |
Restricted cash is related to deposits made for future Drydockings of our vessels.
|
** |
Current portion of Long Term debt includes $12.7 million related to the new borrowing facility and $7.1 million relates to the Vessel Financing Newbuildings.
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
Amounts in USD ‘000
|
Mar. 31, 2019
|
Dec. 31, 2018
|
Mar. 31, 2018
|
Dec. 31, 2018
|
||||||||||||
Voyage Revenue
|
88,283
|
86,257
|
66,595
|
289,016
|
||||||||||||
Voyage Expense
|
(34,654
|
)
|
(42,063
|
)
|
(36,979
|
)
|
(165,012
|
)
|
||||||||
Net Voyage Revenue (1)
|
53,629
|
44,193
|
29,616
|
124,004
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
Mar. 31, 2019
|
Dec. 31, 2018
|
Mar. 31, 2018
|
Dec. 31, 2018
|
|||||||||||||
Net Operating Earnings (Loss)
|
18,307
|
5,400
|
(11,146
|
)
|
(38,616
|
)
|
||||||||||
Depreciation Expense
|
15,785
|
15,771
|
15,071
|
60,695
|
||||||||||||
Impairment Loss on Vessels and Goodwill
|
0
|
0
|
0
|
2,168
|
||||||||||||
(Gain) Loss Disposal of Vessels
|
0
|
3,261
|
0
|
6,619
|
||||||||||||
Share Based Compensation and Pension Cost
|
198
|
(799
|
)
|
464
|
140
|
|||||||||||
Adjusted Net Operating Earnings (2)
|
34,290
|
23,633
|
4,389
|
31,006
|
(1) |
Net voyage revenues represents voyage revenues less voyage expenses such as bunker fuel, port fees, canal tolls and brokerage commissions. Net voyage revenues is included because certain
investors use this data to measure a shipping company’s financial performance. Net voyage revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net
income or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States.
|
(2) |
Adjusted Net Operating Earnings represents Net Operating Earnings (Loss) before depreciation, impairment, (gain) loss disposal of vessels and non-cash administrative charges. Adjusted Net
Operating Earnings is included because certain investors use this data to measure a shipping company’s financial performance. Adjusted Net Operating Earnings is not required by accounting principles generally accepted in the United States
and should not be considered as an alternative to net income or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States.
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)
|
Three Months ended
|
Twelve Months ended
|
||||||
Mar. 31, 2019
|
Dec. 31, 2018
|
|||||||
Amounts in USD ‘000
|
||||||||
Net Cash Provided by (Used in) Operating Activities
|
18,068
|
(16,103
|
)
|
|||||
Investment in Vessels
|
(269
|
)
|
(4,810
|
)
|
||||
Sale of Vessels
|
0
|
89,624
|
||||||
Other
|
0
|
(60
|
)
|
|||||
Return from Investments
|
0
|
300
|
||||||
Net Cash Provided by (Used in) Investing Activities
|
(269
|
)
|
85,054
|
|||||
Proceeds from Vessel Financing Newbuildings
|
0
|
12,505
|
||||||
Proceeds from Borrowing Activities
|
300,000
|
(78,242
|
)
|
|||||
Repayments on Credit Facility
|
(313,400
|
)
|
(2,361
|
)
|
||||
Repayments of Vessel Financing Newbuildings
|
(1,763
|
)
|
0
|
|||||
Repayments of Borrowing Facility
|
(2,551
|
)
|
0
|
|||||
Transaction Costs Borrowing Facilities
|
(6,893
|
)
|
0
|
|||||
Dividends Distributed
|
(5,678
|
)
|
(9,936
|
)
|
||||
Net Cash Provided by (Used in) Financing Activities
|
(30,285
|
)
|
(78,034
|
)
|
||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(12,486
|
)
|
(9,083
|
)
|
||||
Effect of exchange rate changes on Cash
|
(18
|
)
|
51
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
49,327
|
58,359
|
||||||
Deposit of Restricted Cash
|
(2,572
|
)*
|
0
|
|||||
Cash and Cash Equivalents at End of Period
|
34,251
|
49,327
|