Bermuda-based Nordic American Tanker Shipping Ltd. has the finances in place to boost the size of its fleet, according to a letter to its shareholders by chairman and CEO Herbjorn Hansson. In his letter, Mr. Hansson said that, representing a significant dividend potential, the company currently has 16 trading suezmax vessels and four newbuildings, two to be delivered in 2010 and two in 2011.
He added that it has ample financial resources to increase its fleet up to 22 vessels or more without tapping the equity market, and consequently, Nordic American has no plans to issue new shares.
The fleet has expanded from 14 to 20 vessels (including the four newbuildings) since January 1, 2009 and in order to minimise the risks for the company's shareholders, as previously, it plans to grow the fleet step-by-step.
"The technical quality of our fleet is good, which is imperative for the future revenues of the company," wrote Mr. Hansson.
For the first six months of 2010, the spot tanker market rates have been volatile, a trend which Nordic American expects to continue, but as a matter of policy, the company added that it does not attempt to predict future spot rates.
During the second quarter, the average spot market rate for suezmax tankers as reported by the Imarex Tanker Index was $34,430 per day compared with $34,983 per day in the first quarter, but they may vary for Nordic American.
The company's next dividend, the 52nd in a row, is expected to be paid on or about September 2, 2010.
"We believe that our full dividend payout policy together with low costs and our spot rate exposure will continue to enable us to achieve a competitive cash yield compared with that of other tanker companies," said Mr. Hansson.
He added that it has ample financial resources to increase its fleet up to 22 vessels or more without tapping the equity market, and consequently, Nordic American has no plans to issue new shares.
The fleet has expanded from 14 to 20 vessels (including the four newbuildings) since January 1, 2009 and in order to minimise the risks for the company's shareholders, as previously, it plans to grow the fleet step-by-step.
"The technical quality of our fleet is good, which is imperative for the future revenues of the company," wrote Mr. Hansson.
For the first six months of 2010, the spot tanker market rates have been volatile, a trend which Nordic American expects to continue, but as a matter of policy, the company added that it does not attempt to predict future spot rates.
During the second quarter, the average spot market rate for suezmax tankers as reported by the Imarex Tanker Index was $34,430 per day compared with $34,983 per day in the first quarter, but they may vary for Nordic American.
The company's next dividend, the 52nd in a row, is expected to be paid on or about September 2, 2010.
"We believe that our full dividend payout policy together with low costs and our spot rate exposure will continue to enable us to achieve a competitive cash yield compared with that of other tanker companies," said Mr. Hansson.