Nordic American Tanker Shipping Ltd (NAT.N) posted a 27 percent fall in quarterly profit, hurt by the impact of the global recession on the tanker industry.
Hamilton, Bermuda-based Nordic also said on Tuesday it agreed to buy its 16th Suezmax vessel for $57 million.
The company reported a net profit of $17.2 million or 46 cents per share, compared with $23.4 million or 78 cents per share in the year-ago quarter. Analysts on average were expecting the company to earn 43 cents per share, excluding items, according to Reuters Estimates.
The double-hull Suezmax tanker built in 2002 is expected to be delivered by July 15 and will be operated in the spot market or on spot market-related charters, the company said.
Of the company's present fleet of 15 Suezmax vessels, 12 are operating in the spot market. One vessel is on a long-term contract and two are new builds. Suezmax's are the largest ships that can transit through the Suez Canal.
Nordic said the vessel purchase would be financed from its capital resources and added that further acquisitions are under evaluation.
"We are confident that this, our sixteenth vessel, will be accretive both to dividends and earnings per share," Nordic American Chief Executive Herbjorn Hansson said in a statement.
Nordic also said it would pay a dividend of 88 cents per share on June 3 to shareholders on record as of May 20, down from $1.18 per share a year ago.
Shares of Nordic closed at $36.49 Monday on the New York Stock Exchange, their highest since early January.
Hamilton, Bermuda-based Nordic also said on Tuesday it agreed to buy its 16th Suezmax vessel for $57 million.
The company reported a net profit of $17.2 million or 46 cents per share, compared with $23.4 million or 78 cents per share in the year-ago quarter. Analysts on average were expecting the company to earn 43 cents per share, excluding items, according to Reuters Estimates.
The double-hull Suezmax tanker built in 2002 is expected to be delivered by July 15 and will be operated in the spot market or on spot market-related charters, the company said.
Of the company's present fleet of 15 Suezmax vessels, 12 are operating in the spot market. One vessel is on a long-term contract and two are new builds. Suezmax's are the largest ships that can transit through the Suez Canal.
Nordic said the vessel purchase would be financed from its capital resources and added that further acquisitions are under evaluation.
"We are confident that this, our sixteenth vessel, will be accretive both to dividends and earnings per share," Nordic American Chief Executive Herbjorn Hansson said in a statement.
Nordic also said it would pay a dividend of 88 cents per share on June 3 to shareholders on record as of May 20, down from $1.18 per share a year ago.
Shares of Nordic closed at $36.49 Monday on the New York Stock Exchange, their highest since early January.