Herbjorn Hansson Expects Higher Earnings this Year for NAT

Photo: 114375914©Kmiragaya | Dreamstime.com

Herbjorn Hansson, the founder, chairman and CEO of Nordic American Tankers (NAT) expects higher earnings this year, having already a net profit of $46.9 million in the first quarter of 2023 and recording one of the lowest debt levels among publicly listed tanker companies.

The New York-listed company notes in its financial report that political uncertainty creates demand for the transport of oil. As a consequence of Russia’s invasion of Ukraine and the West’s strong reaction, oil will have to be sourced from further away than in the past, creating longer voyages.

Uncertain times also encourage hoarding, adding to demand for oil and for the NAT tankers. The company’s earnings so far in 2023 illustrate that the scarcity of suezmax tankers should secure a very interesting market for NAT going forward. Seasonal variations will occur, but the company expects earnings to be at higher levels than in the past.

NAT also stands to benefit from the fact that the supply of Suezmax tankers will remain at historic low levels for at least the next two or three years, with only 19 new ships in the world’s orderbook for suezmax tankers.

The company’s net profit for the first quarter of 2023 landed at $46.9 million, an improvement from the fourth quarter 2022, where NAT recorded a strong net result of $36 million.

NAT’s Ebitda came in with a positive $67.7 million, compared to an adjusted Ebitda of $51.1 million for the fourth quarter of 2022. 

Nordic American Tankers also has one of the lowest debt levels among publicly listed tankers companies, recording a net debt of $168 million, equal to $8.9 million per ship at March 31, 2023.

At the end of March, 2023, NAT’s fleet consisted of 19 Suezmax tankers with a cargo lifting capacity of 1 million barrels of oil each.

Disclaimer for podcasts and articles

When you view, access or otherwise use our podcasts or articles, you acknowledge the application of this disclaimer:

Shipping Telegraph ApS provides no warranty, guarantee or representation as to the accuracy or sufficiency of the information featured in our podcasts or articles. The information, opinions, recommendations, content, etc. presented in our podcasts or articles are for information purposes only and do not constitute or replace professional advice. Any reliance you may place on the information provided in our podcast or articles is strictly at your own risk.

Unless it is specifically stated, Shipping Telegraph ApS does not approve, recommend or certify any product, process, service, organization, etc. presented or mentioned in our podcasts or articles. Any third-party materials, advertisements or content of any third-party referenced in our podcasts or articles do not necessarily reflect the opinions, standard or policies of Shipping Telegraph ApS, and Shipping Telegraph ApS cannot be held accountable hereof. Shipping Telegraph ApS is not responsible or liable for the accuracy, completeness or compliance with applicable laws of any third-party material, advertisements and content.

Shipping Telegraph ApS shall not be responsible for any errors or omissions contained in the podcasts, the articles or the website used to gain access hereto and reserves the right to make changes without notice. Shipping Telegraph ApS makes no warranty that our podcasts or articles, or the server making them available, are free of viruses, worms, etc.

Shipping Telegraph ApS expressly disclaims any and all liability or responsibility for any direct, indirect, punitive, incidental, consequential or other damages or other claims arising out of or in connection with any individual's and business entity's use of, reference to, reliance on our podcasts or articles or the information presented herein. By ticking the box, I agree with the disclaimer above.