Nordic American Tankers (NAT) Q3 2024 earnings summary

Executive summary

• Net profit for Q3 2024 was $8.7 million, up from $7.5 million in Q3 2023, with EPS of $0.04 for both periods.

• Secured new time-charter contracts totaling $125 million in net revenue, reflecting strong demand and scarcity of Suezmax ships.

• Declared 109th consecutive quarterly dividend of $0.04 per share, payable January 16, 2025.

• Fleet consists of 20 well-maintained Suezmax tankers, with 15 operating in the spot market.

Financial highlights

• Net voyage revenue for Q3 2024 was $52.0 million, up from $48.0 million in Q3 2023 but down from $66.1 million in Q2 2024.

• EBITDA for Q3 2024 was $30.4 million, compared to $27.1 million in Q3 2023 and $43.2 million in Q2 2024.

• Average TCE for Q3 2024 was $30,656 per day per ship; daily operating costs were about $9,000 per ship.

• Net cash provided by operating activities for the nine months ended September 30, 2024, was $105.2 million.

Outlook and guidance

• Prospects for Suezmax tankers remain strong due to tight supply and high demand, with limited new vessel deliveries expected over the next several years.

• Anticipated regulatory changes in 2025 could further boost demand for compliant fleets.

• Management expects continued strong tanker markets and higher dividends in an improved market.