Nordic American Tankers Limited (NAT) has entered into a 2 year time charter (TC) with British Petroleum (BP). This follow's NAT's TC arrangements with Shell, ExxonMobil and other major oil companies both in the West and in the East.
"The minimum rate is well above our cash break-even level with an index linked formula providing for upside potential to NAT. Commencement is mid September; i.e. in about 10 days," said a statement from the company.
"As an example of the income potential of NAT, if our fleet is achieving about $30,000 per day spread across all the NAT vessels, the dividend potential could be about $2 per share per year. In the past, on occasions, the tanker market has been much higher than that," it added.
NAT has now five vessels on longer term contracts with major oil companies worldwide. In addition, we have shorter contracts with other major energy companies in the East and in the West.
The contracts with big oil, such as Shell, BP and ExxonMobil, are examples of the confidence customers have in NAT and in our fleet of Suezmax vessels.
Nordic American Tankers is a shipping company focused on crude tankers, with 100% exposure to the Suezmax segment. NAT owns 30 Suezmax tankers each of which can carry up to 1M barrels per vessel.