Tanker firm sees encouraging economic signs
There are encouraging signs for the world economy that have given Bermudian-based Nordic American Tankers optimism for the future.
The tanker operator has reported net income of $49.1 million, or 33 cents per share, up 24 per cent from the first quarter.
In its outlook, the company said: “What is good for the world economy and world trade is positive for the crude oil tanker business. A low oil price is good for the world economy and works as a stimulus for recovery after that last few months of virus lockdowns.”
Nordic American Tankers added: “We see encouraging signals of improved Asian economies, boding well for the world economy and the tanker markets going forward.”
The average rate Nordic American Tankers achieved for its fleet of 23 Suezmax tankers, a measurement known as time charter equivalent, was $48,400 per ship per day, during the second quarter.
That compares to $44,100 in the first quarter, and $31,700 in the final three months of 2019.
The company said its operating costs are about $8,000 per ship per day.
It has not been materially affected by the Covid-19 pandemic.
The company said: “Main challenges have been related to crew changes and we are following guidance issued by health authorities and international shipping trade associations to safeguard our seafarers.
“The future macroeconomic effects of Covid-19 remain uncertain.”
Nordic American Tankers' long-term liabilities at the end of June stood at $318.9 million, a reduction of more than $110 million since the end of 2018.
The company's ships run on fuel that meets stricter rules imposed this year by the International Maritime Organisation to curb emissions of sulphur oxides.
Nordic American Tankers said it did not regard installing exhaust gas cleaning systems, also known as scrubbers, “as an alternative of any interest”.
• Disclosure: the writer owns shares in Nordic American Tankers
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