Nordic American Tankers (NAT) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 reached $21.6 million, up from $15.1 million in Q1 2024, reflecting strong operational performance and improved market conditions.

• Declared a $0.12 per share dividend for Q2 2024, marking the 108th consecutive quarterly dividend.

• Maintains a fleet of 20 Suezmax tankers, all well-maintained and operating primarily in the spot market.

• Benefiting from high oil demand in Asia and a global shortage of Suezmax tankers, with ongoing geopolitical tensions supporting strong rates.

Financial highlights

• Net voyage revenue for Q2 2024 was $66.1 million, compared to $60.6 million in Q1 2024 and $67.8 million in Q2 2023.

• Net income for Q2 2024 was $21.6 million, or $0.10 per share; Q1 2024 net income was $15.1 million, or $0.07 per share.

• Average TCE for Q2 2024 was $36,600 per day per ship, with daily operating costs around $9,000 per ship.

• Net debt as of June 30, 2024, was $218.5 million, or $10.9 million per vessel.

• Cash and cash equivalents at quarter-end totaled $40.8 million, with restricted cash of $6.8 million.

Outlook and guidance

• Tight Suezmax supply and high Asian oil demand are expected to support strong earnings for several years.

• Anticipates continued strong tanker markets, with potential for higher dividends in an improved market.

• Only five new Suezmax vessels to be delivered globally in 2024, supporting a favorable supply/demand balance.