Bermuda-based Nordic American Tanker Shipping Ltd. is to expand its fleet of oil tankers to 17.

The company said yesterday that it had purchased its latest suezmax vessel for $51.5 million, to be delivered by the end of next month.

The purchase of the seven-year-old vessel will be with cash on hand, and no equity offering will be held in connection with it.

Nordic's business model involves paying back the vast majority of earnings back to shareholders through dividends. It has funded the build-up of its fleet through share offerings, rather than by borrowing the money. Nordic's lack of debt served it well during the credit crisis.

Herbjørn Hansson, the Company's chairman and chief executive officer, said: "We are confident that this, our 17th suezmax vessel, will be accretive both to dividends and earnings per share.

"Therefore, dividends and earnings per share can be expected to be higher than had this vessel not been acquired.

"NAT is committed to continuing to build upon its successful operating model in which the elements of full dividend payout and accretive growth are central."