Bermuda-based Nordic American Tanker Shipping Ltd. announced yesterday that it expected earnings and dividend payments to shareholders to be boosted by the $56.7 million purchase of a double-hull Suezmax tanker.

The expected delivery date is March 15, 2009, and the new tanker will increase to 13 Nordic's fleet of Suezmax tankers — the largest ships to be able to pass along the Suez Canal fully loaded.

Additionally the company has ordered two more tankers, one due to be delivered at the end of this year and the other in April 2010.

The company also said its dividend payment for the fourth quarter of last year, which fluctuates with the hiring rates for its tankers, will be around 85 cents per share, compared to 50 cents per share in the same period in 2007.

Nordic's dividends for the first three quarters of 2008 were $1.61, $1.60 and $1.18 for the third second and first quarters respectively.

Nordic shares rose $1.60 (five percent) to $35.99 in New York Stock Exchange trading yesterday.

The latest vessel to be purchased was built in 1999 and will bring to seven the number of Nordic's vessels built at the Samsung shipyard, something which the company says will help bring cost efficiencies through economy of scale.

Nordic, one of few companies in the shipping industry to be able to boost no net debt on its books, said the purchase of the vessel would be financed out of its own resources.

The average charter rate level for the Company's trading spot fleet, including off-hire days, is estimated to be in the range of $40,000 per day per vessel for the fourth quarter of 2008, when the Nordic fleet had 35 days offhire due to unscheduled repairs. Nordic added that the spot rate contracts entered into for 2009 are well above the fourth-quarter level.

"The acquisition of this high quality vessel will increase the dividend and earnings capacity of the company and we expect this acquisition to be accretive," said Nordic chairman and chief executive officer Herbjorn Hansson.

"Further acquisitions are under planning. We are continuously working to enhance the company's ability to pay quarterly dividends based upon the company's dividend model which we expect will continue.

"The company has now paid dividends for 45 consecutive quarters. We believe that our strong balance sheet, well defined and transparent operating model provide the company with a solid competitive position going forward."