6-K 1 d8860079_6-k.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

FORM 6-K
 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2021
Commission File Number: 001-13944
 
 

NORDIC AMERICAN TANKERS LIMITED
(Translation of registrant’s name into English)
 
 

LOM Building, 27 Reid Street, Hamilton, HM 11, Bermuda
(Address of principal executive office)
 
 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒            Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b) (1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐.
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
 
 
 


INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached as Exhibit 1 is a press release of Nordic American Tankers Limited (the "Company") dated May 25, 2021, announcing the Company’s dividend and earnings report for the first quarter of 2021.

The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company’s Registration Statement on Form F-3 (File No. 333-228603), filed with the U.S. Securities and Exchange Commission with an effective date of February 20, 2019.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
NORDIC AMERICAN TANKERS LIMITED
 
(registrant)
   
Dated: May 26, 2021
By:
/S/ HERBJØRN HANSSON
   
Herbjørn Hansson
   
Chairman, President, and Chief Executive Officer
     
     
     


Exhibit 1





Nordic American Tankers Limited (NYSE: NAT) – First quarter 2021 – At a turning point –
Fleet value going up
Tuesday, May 25, 2021
highlights: 
It is essential to understand the NAT strategy to formulate a view on what the future holds. This is commented upon later in this report.

 1
Normally, a set-back in oil demand is followed by a forceful rebound. We are now at a positive turning point for the NAT vessels. Production of oil goes up following increased oil demand. The upward move in the price of oil,  in raw materials such as steel and copper has increased the value of our fleet by more than $100 million over the last few months. This  strengthens NAT which has an expansionary perspective.   

2
We believe that the global economy is poised to enjoy a robust growth going forward. This is good for the NAT business.

3
As seen in the past, small events can turn the market in our favor. The closure of the Suez Canal a few days during the first quarter served as a reminder of how finely balanced the market is. One ship too many pushes freight rates lower and one ship too few does the opposite.

4
Despite OPEC oil production cuts during 1Q 2021, the average time charter equivalent (TCE) came in at $9,400 per day per ship - an improvement on the previous quarter that gave a TCE of $8,700 per day per ship. Except for one, all our ships are working  on short term contracts. An upswing in demand will immediately increase the NAT results. The operating costs per ship are about USD 8,000 per day.

5
the first quarter of 2021 produced a net loss of $25.0 million or an earning per share (EPS) of -$0.16. this compares to the previous quarter, that produced an EPS of -$0.19. Consequently, there was a small improvement in 1Q 2021 compared to 4Q 2020.

6
Payment of dividend is a priority for NAT. The dividend for 1Q2021 is 2 cents ($0.02) per share, payable on Friday June 18, 2021, to shareholders on record Friday June 4, 2021. This is our 95th consecutive quarterly dividend payment. When earnings improve, higher dividends can be expected.

7
The Founder, Chairman and CEO and his son Alexander are between them the second largest shareholder in the company.

8
Our industry network and close customer relationships with major oil companies and traders  are based on trust, fleet quality and on our people. The Quality of our fleet is proven by the technical  “vetting” - inspections  undertaken by those who lease the vessels. NAT has sound corporate governance principles. The Company has zero tolerance for corruption.

9
detailed financial information for the first quarter of 2021 and for other periods is included later in this report.
1


Our Fleet
Our fleet now consists of 25 (incl. 2 newbuildings) well maintained Suezmax tankers with a cargo lifting capacity of 1 million barrels of crude oil each. We focus solely on the Suezmax market. We believe Suezmax vessels are more versatile and the one-million-barrel market offers more options in trading than the Very Large Crude Carriers (VLCC) with their two-million-barrel lifting capacity.
We take extra care to maintain our vessels to the highest standards for the safety of crew, cargo and the environment. The outcome of the inspections of our ships by oil companies (“vetting”) reflects the good quality and maintenance of our fleet.
The operations of our Suezmax fleet have not been materially affected by the Covid-19 pandemic. Main challenges have been related to crew changes and we are following guidance issued by health authorities and international shipping trade associations to safeguard our seafarers.
NAT has one of the largest fleets of Suezmax tankers in the world. In a capital intensive industry like ours, careful maintenance of our existing fleet and the timing & financing of expansion are key elements to ensure both our financial stability and our commitment to paying cash dividends.
All our vessels are running on IMO compliant fuel.
Results for the first quarter 2021
For the first quarter 2021, the net loss was -$25.0 million or -$0.16 per share. This compares with a net loss of -$28.7 million and an EPS of -$0.19 per share in the fourth quarter if 2020. EBITDA (non-GAAP measure) came in at -$1.3 million for the first quarter 2021, compared to an EBITDA for the previous quarter of -$5.1 million.
For detailed information about our statement of operations (P&L), balance sheet, cash flow and reconciliation of certain Non-GAAP financial measures, we refer to the tables on page 5 and 6 of this press release.
Financing
Our Long Term Debt stood at $329.0 million, net of transaction costs, as of March 31, 2021.
Our fleet is financed through two financing arrangements;

 1)
The total outstanding balance to CLMG/Beal Bank (including current portion of the debt), is $249.7 million as of March 31, 2021. Restricted cash of $4.0 million is related to deposits held for future Drydockings of our vessels, in accordance with our borrowing agreement. 

2)
The total outstanding balance to Ocean Yield (including current portion of the debt) is $110.3 million as of March 31, 2021.
Current portion of long term debt is $16.8 million related CLMG/Beal Bank and $8.0 million is related to the Ocean Yield Financing. This is presented in our balance sheet with a total of $22.2 million net of transaction costs.
Our two newbuildings for delivery first half  2022 is financed with Ocean Yield. The financing agreement for up to 80% contains pre-delivery funding for the last two pre-delivery instalments for the newbuildings, if required.
During 1Q 2021 the Company issued 1,872,875 shares, with gross proceeds of $6.4 million under the $60 million ATM established October 16, 2020. At March 31, 2021, the Company had a total of 153,318,987 common shares outstanding.
For the first quarter of 2021 a cash dividend of 2 cents $ 0.02 per share has been declared. This is the 95th consecutive quarterly dividend payment.
Payment of the dividend will be on or about June 18, 2021, to shareholders of record on June 4, 2021.  
Our dividend will always be a reflection of our cash earnings.
2


World Economy and the Tanker Market
What is good for the world economy and world trade is positive for the crude oil tanker business.
OPEC oil production cuts are easing from this month, as world oil inventories have decreased rapidly on the back of strong oil demand in the Far East and a cold winter in Europe & US. We believe this marks the turning point for the tanker market as oil producers around the world will start adding barrels to the market  in the coming months and years.
With all of the stimulus spending, potential infrastructure spending, continued quantitative easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the global economy has the potential to have a robust, multi-year growth. This is good for oil and tanker demand.
Historically, every set-back in world oil demand has been followed by a forceful rebound the following year. The above combined with a muted fleet growth bodes well for the years to come.
The world’s Suezmax fleet (excl. shuttle, product & Jones Act tankers) counted 546 vessels at March 31, 2021. 13 conventional Suezmax vessels was added to the world fleet during 1Q 2021 and 9 remaining to be delivered for the rest of 2021. We currently see 26 conventional Suezmax tankers for delivery in 2022, and 3 for delivery from the shipyards in 2023.
The supply of tanker tonnage is inelastic in the short-term. When there are too many ships in an area, rates tend to go down. When there is scarcity of ships, rates tend to go up. Short-term spot tanker rates may be expected to be volatile.
Corporate Governance/Conflict of Interests
It is vital to ensure that there is no conflict of interests among shareholders, management, affiliates and related parties. Interests must be aligned. From time to time in the shipping industry, we see that questionable transactions take place which are not in harmony with sound corporate governance principles, both as to transparency and related party aspects. We have zero tolerance for corruption.
Strategy Going Forward
The NAT strategy is built on expanding and maintaining a homogenous and top quality fleet, leveraging on our industry network and close customer relationships with major oil companies. Employment of our ships with major oil companies is a priority.
We are a dividend company with the objective of having a strong balance sheet and low G&A costs, enabling us to distribute free cash flows to our shareholders.
This strategy will be positive in a strong tanker market. In an improved market, higher dividends can be expected.
Our dividend policy should continue to enable us to achieve a competitive cash yield.
Our fleet of 25 (including newbuildings) more or less identical vessels is a special feature of NAT that is particularly valuable to our customers.
NAT is firmly committed to protecting its underlying earnings and dividend potential. We shall safeguard and further strengthen this position in a deliberate, predictable and transparent way.
* * * * *
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NORDIC AMERICAN TANKERS LIMITED
        
 
                        
CONSOLIDATED CONDENSED STATEMENTS OF OPERATION
(UNAUDITED)
  
Three Months Ended
    
Twelve Months Ended
  
 
Mar. 31, 2021
    
Dec. 31, 2020
    
Mar. 31, 2020
    
Dec. 31, 2020
  
Amounts in USD '000
                         
Net Voyage Revenue
    
18,811
      
16,293
      
86,179
      
233,530
  
                                 
Vessel Operating Expenses
    
(16,450
)
    
(16,684
)
    
(16,981
)
    
(66,883
)
General and Administrative Expenses
    
(3,664
)
    
(4,888
)
    
(4,483
)
    
(17,586
)
Depreciation Expenses
    
(17,077
)
    
(17,042
)
    
(17,084
)
    
(67,834
)
Operating Expenses
    
(37,191
)
    
(38,614
)
    
(38,548
)
    
(152,303
)
Net Operating Income (Loss)
    
(18,380
)
    
(22,321
)
    
47,631
      
81,227
  
                                 
Interest Income
    
0
      
0
      
92
      
96
  
Interest Expense
    
(6,678
)
    
(6,526
)
    
(8,404
)
    
(31,481
)
Other Financial Income (Expenses)
    
28
      
184
      
230
      
191
  
Total Other Expenses
    
(6,650
)
    
(6,342
)
    
(8,082
)
    
(31,194
)
Net Income (Loss)
    
(25,030
)
    
(28,663
)
    
39,549
      
50,033
  
Basic and Diluted Earnings (Loss) per Share
    
(0.16
)
    
(0.19
)
    
0.27
      
0.34
  
Weighted Average Number of Common Shares Outstanding
    
151,856,939
      
151,121,043
      
147,230,634
      
149,292,586
  
Common Shares Outstanding
    
153,318,987
      
151,446,112
      
147,230,634
      
151,446,112
  



             
CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
  
Mar. 31, 2021
    
Dec. 31, 2020
  
Amounts in USD '000
             
Cash and Cash Equivalents
    
38,329
      
57,847
  
Restricted Cash
    
3,991
      
4,223
  
Accounts Receivable, Net
    
7,595
      
6,349
  
Prepaid Expenses
    
6,828
      
5,477
  
Inventory
    
23,783
      
19,408
  
Voyages in Progress
    
7,251
      
4,644
  
Other Current Assets
    
1,809
      
1,574
  
Total current assets
    
89,586
      
99,522
  
Vessels, Net
    
844,476
      
861,342
  
Vessels under Construction
    
11,378
      
11,000
  
Other Non-Current Assets
    
3,948
      
2,483
  
Total Non-Current Assets
    
859,802
      
874,825
  
Total Assets
    
949,388
      
974,347
  
                 
Accounts Payable
    
2,011
      
4,099
  
Accrued Voyage Expenses
    
11,154
      
5,254
  
Other Current Liabilities
    
6,953
      
8,232
  
Current Portion of Long Term Debt
    
22,183
      
22,094
  
Total Current liabilities
    
42,301
      
39,679
  
Long-Term Debt
    
329,064
      
334,615
  
Other Non-Current Liabilities
    
859
      
927
  
Total Non-current Liabilities
    
329,923
      
335,542
  
Shareholders' Equity
    
577,164
      
599,126
  
Total Liabilities and Shareholders' Equity
    
949,388
      
974,347
  

4

NORDIC AMERICAN TANKERS LIMITED
            
 
            
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(UNAUDITED)
  
Three Months Ended
    
Twelve Months Ended
  
           
   
Mar. 31, 2021
    
Dec. 31, 2020
  
Amounts in USD '000
 
            
Net Cash Provided by Operating Activities
    
(14,643
)
    
110,944
  
                 
Investment in Vessels
    
(141
)
    
(6,845
)
Investment in Other Fixed Assets
    
(553
)
    
(233
)
Investment in Vessels under Construction
    
(378
)
    
(11,000
)
Proceeds from Sale of Investment Securities
    
0
      
602
  
Net Cash Used in Investing Activities
    
(1,072
)
    
(17,476
)
                 
Proceeds from Issuance of Common Stock
    
6,188
      
20,713
  
Proceeds from Borrowing Activities
    
0
      
29,300
  
Repayments of Vessel Financing
    
(1,925
)
    
(7,630
)
Repayment of Borrowing Facility
    
(4,202
)
    
(67,896
)
Financing Transaction Costs
    
(1,100
)
    
(320
)
Dividends Distributed
    
(3,047
)
    
(67,242
)
Net Cash Used in Financing Activities
    
(4,086
)
    
(93,075
)
 
                
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
    
(19,801
)
    
393
  
Effect of exchange rate changes on Cash
    
51
      
39
  
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
    
62,070
      
61,638
  
Cash, Cash Equivalents and Restricted Cash at End of Period
    
42,320
      
62,070
  
Cash and Cash Equivalents
    
38,329
      
57,847
  
Restricted Cash
    
3,991
      
4,223
  



5

NORDIC AMERICAN TANKERS LIMITED
  
 
                        
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
  
Three Months Ended
    
Twelve Months Ended
  
Amounts in USD '000
  
Mar. 31, 2021
    
Dec. 31, 2020
    
Mar. 31, 2020
    
Dec. 31, 2020
  
Voyage Revenue
    
47,999
      
43,841
      
132,145
      
354,619
  
Voyage Expense
    
(29,188
)
    
(27,548
)
    
(45,966
)
    
(121,089
)
Net Voyage Revenue (1)
    
18,811
      
16,293
      
86,179
      
233,530
  
                                 
                                 
 
  
Three Months Ended
    
Twelve Months Ended
  
Amounts in USD '000
  
Mar. 31, 2021
    
Dec. 31, 2020
    
Mar. 31, 2020
    
Dec. 31, 2020
  
Net Income (Loss)
    
(25,030
)
    
(28,663
)
    
39,549
      
50,033
  
Interest Expense
    
6,678
      
6,526
      
8,404
      
31,481
  
Interest Income
    
0
      
0
      
(92
)
    
(96
)
Depreciation Expense
    
17,077
      
17,042
      
17,084
      
67,834
  
EBITDA (2)
    
(1,275
)
    
(5,095
)
    
64,945
      
149,252
  


(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)
EBITDA is included because certain investors use this data to measure a shipping company's financial performance. EBITDA 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.


6




CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this press release may constitute forward-looking statements.  The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties.  Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.  We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.

NAT is a Bermuda based Company.

Contacts:

Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223

Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391 or +47 91 35 00 91

Herbjørn Hansson, Chairman & CEO
Nordic American Tankers Limited
Tel: +1 866 805 9504 or +47 90 14 62 91

Web-site: www.nat.bm



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