Bermudian-based Nordic American Tankers should do better this year, according to Herbjørn Hansson, the company’s chairman.

Low charter rates for oil tankers have hit the sector in recent quarters, although rates increased slightly in the fourth quarter.

In a letter to shareholders, this week, Mr Hansson said: “We expect that 2018 will be a better year for NAT than 2017, providing increased earnings and dividend.

“The last ten years the general and administrative costs of NAT have been reduced from about $1 million per ship, per year to about $400,000 per ship.

“This about 60 per cent reduction is fortifying our ability to compete effectively, providing a continued low cash breakeven level.”

Nordic has 30 almost identical Suezmax tankers that can hold one million barrels of oil each. Mr Hansson said all the ships are presently being used.

The company has fully financed three new build tankers that will be delivered this year.

Mr Hanson said NAT’s recapitalisation programme has a scope of $600 million or more.

“During the first half of 2018 at the latest, when the recapitalisation programme is finalised, NAT will be one of the financially strongest tanker companies listed on Wall Street.”

Last month, shares of NAT lost more than a quarter of their value after the company priced a 40 million share offering well below its market price. The company’s shares fell 53 per cent in the last three months of 2017.