UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For
the month of May 2009
Commission
File Number: 001-13944
|
NORDIC
AMERICAN TANKER SHIPPING LIMITED
|
|
(Translation
of registrant's name into English)
|
|
LOM
Building, 27 Reid Street, Hamilton, HM 11, Bermuda
|
|
(Address
of principal executive office)
|
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F [x] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): [ ].
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely
to provide an attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): [ ].
Note: Regulation S-T Rule
101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the
registrant is incorporated, domiciled or legally organized (the registrant's
"home country"), or under the rules of the home country exchange on which the
registrant's securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the
registrant's security holders, and, if discussing a material event, has already
been the subject of a Form 6-K submission or other Commission filing on
EDGAR.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a press release of Nordic American Tanker Shipping
Limited, dated May 5, 2009, announcing its financial results for the first
quarter of 2009.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
NORDIC
AMERICAN TANKER SHIPPING LIMITED
(registrant)
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Dated: May
6, 2009
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By:
/s/ Herbjørn
Hansson
|
|
Herbjørn
Hansson
Chairman,
Chief Executive Officer and
President
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Exhibit 1
Nordic American Tanker Shipping Ltd.
(NYSE:NAT) – Announces Dividend and Earnings in
respect of the 1st Quarter of 2009
Hamilton, Bermuda, May 5, 2009
Nordic American Tanker Shipping Ltd.
("NAT" or "the Company") today announced its results for the 1st quarter of 2009. Based on its results for the quarter,
the Company will pay a dividend of $0.88 per share on or about June 3, 2009 to
shareholders of record as of May 20, 2009. Following this dividend
payment, the Company will have paid a dividend for 47 consecutive quarters since the autumn
of 1997 when the first three vessels in the Company's fleet were delivered and
commenced operations.
In a separate press release today we
have advised the market of an acquisition of a double hull suezmax tanker (built
in 2002) bringing our fleet to sixteen vessels. The acquisition will be financed
by the capital resources of the Company.
Having one of the strongest balance
sheets in the industry, the Company is committed to continuing its simple,
transparent and predictable strategy and full payout dividend
policy.
The present instability in the
international financial markets is serious for many shipping
companies. NAT has a very strong position in this environment. The
Company has no net debt, and at the time of this writing, an undrawn revolving
credit facility of $500 million with a term up to September 2013. The Company
raised net proceeds of approximately $107 million on January 13, 2009 from a
follow-on offering of common shares. This provides NAT with enhanced financial
flexibility going forward.
Our primary objective is to maximize
total return1
to our shareholders including maximizing the quarterly cash
dividend.
The Company does not engage in any type
of derivatives.
The Company has further acquisitions
under evaluation and expects to continue to strengthen its position compared
with that of its competitors.
Highlights:
|
·
|
The Board of Directors has
declared a dividend of $0.88 per share in respect of 1Q09. For
the last four quarters, including the dividend to be paid for 1Q09, a
total of $4.96 has been declared in dividends, which represents 15.1% of the average daily share price
over the same period.
|
|
·
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Net income for 1Q09 was $0.46 per share based on the weighted average number of
shares outstanding during the quarter, 37,424,291, compared to $0.78 per
share for 1Q08.
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|
·
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In 1Q09 total off hire was 2 days.
There are no planned dry dockings for any of the Company's vessels until
2010 when one vessel is scheduled for
dry-docking.
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1 Total Return is defined as stock
price + the dividends, assuming the dividend is reinvested in the
stock
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·
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On January 13, 2009, the Company completed an
underwritten public offering of 3,450,000 common shares which
strengthened its equity by more than $107 million in order to increase
the capacity of the Company to make further accretive
acquisitions.
|
|
·
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On February 18, 2009, the Company
took delivery of its 15th double-hull suezmax
tanker.
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|
·
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Notwithstanding the volatility in
the financial and commodities markets, the sound suezmax tanker spot
market continued in 1Q09. Going into 2Q09, the spot tanker market
has tapered off while remaining subject to volatility. The Company does
not predict future spot rates.
|
Financial
Information:
The Board has declared a dividend of
$0.88 per share in respect
of 1Q09. This compares with a dividend of $1.18 per share which was declared in respect of 1Q08.
The amount of dividends per share is above all a direct reflection of the level of the spot
tanker market during the relevant quarter and the number of shares outstanding.
The weighted average number of shares outstanding for the 1st quarter 2009 was
37,424,291.
Following the payment of the dividend in
respect of 1Q09, the Company has for the last four quarters paid dividends in
the aggregate of $4.96 per share, representing a yield of 15.1% per
annum based on the average daily share price during the past twelve months up to
April 1, 2009.
Net income for 1Q09 was $17.2m, or $0.46 per share (EPS) compared to net income of $23.4m, or $0.78 per share for the 1Q08. Non-cash G&A items,
including compensation to the Manager in connection with the follow-on offering
in January 2009, constitute $0.08 per share. As
opposed to other issue related costs this non-cash item has been booked against
the profit & loss account.
The Company's operating cash flow2 was $33.3m for 1Q09, compared to $36.9m for 1Q08.
We consider our general and
administrative costs per
day per ship to be at a low
level. We also continue to
have a strong focus on keeping our vessel operating costs low, while always
maintaining our commitment
to safe vessel
operations.
We estimate that our average cash breakeven level for our 13 existing vessels is below $10,000 per day per vessel. When the freight market is above this
level, the Company can be expected to pay a dividend. The breakeven rate is the amount of
average daily revenues our vessels would need to earn in the spot
market in order to cover our vessel operating expenses,
voyage expenses, if any, cash general and administrative expenses, interest
expense and other financial charges.
As of the end of 1Q09, NAT does not have any net debt. At the
time of this
release, the Company has
not drawn on its $500 million revolving credit facility. The
credit facility, which
matures in September 2013, is not subject to
reduction by the lenders and there is no obligation to repay principal during the term of the facility. The
Company pays interest only on drawn amounts and a commitment fee for undrawn
amounts.
The
double hull Suezmax tanker which was delivered to the Company on February 18,
2009 was financed from the Company's financial resources. This
vessel, the May acquisition announced today and the two newbuildings are
expected to increase the earnings and dividend capacity of the Company by
approximately 33%.
On
January 13, 2009, the Company completed the offering of 3,450,000 common shares,
including the exercise by the underwriters of an over-allotment option of
450,000 shares, in order to further increase the Company's capacity to make
accretive acquisitions. The follow-on offering resulted in aggregate net
proceeds to the Company, before expenses relating to the offering, of
approximately $107 million. Following the offering, the Company has 37,893,679
common shares outstanding.
For further details on our financial
position for the periods of
1Q09, 4Q08 and 1Q08 the year 2008 please see later in this
release.
2 Operating
cash flow is a non-GAAP financial term often used by investors to measure
financial performance of shipping
companies. Operating cash flow represents income from vessel
operations before depreciation and non-cash administrative
charges. Please see page 6 for a reconciliation of
this non-GAAP measure as used in this release to the most directly comparable
GAAP financial measure.
The
Fleet:
Twelve of the Company's 13 existing vessels are employed in the spot market, while one vessel
remains employed on a long-term fixed rate
charter.
By
way of comparison, in
the autumn
of 2004 the Company had three
vessels; at the end of 2005 the Company had eight vessels; and at the end of
2006 the Company had 12 vessels. During 1Q09, we had 13 vessels in operation. With the two newbuildings announced in
November 2007 and the acquisition announced today, the Company is expected
to have a fleet of 16 vessels operating from
April 2010 if no further
acquisitions are made in the meantime.
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Vessel
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Dwt
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Employment
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|||
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Gulf
Scandic
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151,475 |
Long term fixed
charter
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|||
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Nordic Hawk
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151,475 |
Spot
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|||
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Nordic
Hunter
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151,400 |
Spot
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|||
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Nordic
Voyager
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149,591 |
Spot
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|||
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Nordic
Fighter
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153,328 |
Spot
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|||
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Nordic
Freedom
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163,455 |
Spot
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|||
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Nordic
Discovery
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153,328 |
Spot
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|||
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Nordic
Saturn
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157,332 |
Spot
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|||
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Nordic
Jupiter
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157,411 |
Spot
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|||
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Nordic
Cosmos
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159,998 |
Spot
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|||
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Nordic Moon
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159,999 |
Spot
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|||
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Nordic
Apollo
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159,999 |
Spot
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|||
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Nordic
Sprite
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147,188 |
Spot
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|||
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Nordic
Galaxy
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163,000 |
Delivery scheduled by end
4Q09
|
|||
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Nordic Vega
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163,000 |
Delivery scheduled by end April
2010
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|||
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Total
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2,341,979 | ||||
No scheduled dry-dockings were
undertaken during 1Q09. There are no further planned dry dockings for our
vessels until 2010 when one dry-docking is expected to take place. During 1Q09
we had in total 2 days of unscheduled off hire for our
fleet.
Financial
Instability and the Tanker Market:
In
our quarterly reports to shareholders we have often stressed the significance of
the development of the world economy for the tanker industry. There is a
significant contraction of demand in the world economy. The present downturn did
not influence the suezmax tanker market to any significant degree during the
first quarter of 2009 – a period during which good results were achieved as
reported herein. Production and consumption locations are of
particular importance to our industry. Transportation volume times distance – or
ton miles – is a key measurement. Suezmax tanker rates are currently
under some pressure. For NAT, a lower freight tanker market can be expected to
result in lower dividend – which is a negative factor. If a lower
freight market results in lower vessel prices – such a development would be an
advantage for the Company because we would be in a position to acquire further
vessels inexpensively compared to historical levels.
It
is apparent that some shipping companies are now facing challenges when it comes
to the financing of their large newbuilding programs, as shipping banks are more
restrictive than before in granting credit. Such an environment offers the
Company the opportunity to improve its relative competitive position as there
may be opportunities to carry through accretive acquisitions.
While
the recession evolving internationally is expected to reduce the demand for
transportation capacity, the demand side for tankers is expected to continue to
be impacted positively by the use of tankers as storage. Due to the so-called
"contango" situation, i.e., the future oil price is above the current spot oil
price, charterers may find it commercially worthwhile to purchase oil in the
spot market and store the oil in tankers while simultaneously selling the same
oil for forward delivery. Currently, market reports indicate that approximately
70 very large crude carriers (VLCCs) are being used for storage purposes,
thereby reducing the supply of tanker tonnage for the time being. Whether this
situation will continue will depend upon the development of the spot oil price
compared with the future oil price.
On
the supply side, it is expected that the current financial upheaval may delay
deliveries of newbuildings and may also lead to the cancellation of newbuilding
orders. We may also see that shipping companies with high debt or
other financial commitments may experience problems which could lead to
foreclosures.
The average daily rate for our spot
vessels was $41,600
per day net to us during
1Q09 compared with $46,600 for 1Q08 and $40,157 per day for 4Q08. Our
cash break-even level is below $10,000 per day per vessel.
The graph shows the average yearly spot
rates since
2000 as reported by R.S.
Platou Economic Research a.s. The rates as
reported by shipbrokers may vary from the actual rates we achieve in the
market.
We
believe it is an advantage for the Company to have its vessels in two
cooperative arrangements which in total commercially manage more than 50 suezmax
vessels.
Strategy
going forward
We believe that the operating model of the Company is working to the benefit of our
shareholders.
The
serious financial turmoil may represent attractive opportunities for our
Company. We have further acquisitions under planning, but we have the
flexibility to be selective.
Our
policy is to grow when it is profitable and accretive to do so; that is, after
an acquisition of vessels or other forms of expansion, the Company should be
able pay a higher dividend per share and produce higher earnings per share than
before such an event before taking into account any change in the spot rates. We
believe that the recent acquisition in January 2009 and the acquisition
announced today are examples of such accretive acquisitions.
We believe that our full payout dividend policy will continue to enable us to achieve a competitive cash yield compared with that of other
shipping companies.
We encourage investors wishing to have
exposure to the tanker sector to assess our model and invest in our
Company.
In the midst of the international
financial instability which is serious for many of our competitors, our Company
is well positioned. To the best of our ability we shall endeavour to safeguard
and further strengthen this position.
* * * * *
NORDIC
AMERICAN TANKER SHIPPING LIMITED
Amounts
in USD '000
|
CONDENSED
STATEMENTS OF OPERATION
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||
|
Mar.
31, 2009 (unaudited)
|
Dec.
31, 2008 (unaudited)
|
Mar.
31, 2008 (unaudited)
|
Dec.
31, 2008 (unaudited)
|
|||||||||||||
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NET
VOYAGE REVENUE
|
44,302 | 40,510 | 46,875 | 217,950 | ||||||||||||
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OPERATING
EXPENSES
|
||||||||||||||||
|
Vessel
operating expenses
|
(9,346 | ) | (8,633 | ) | (8,442 | ) | (35,593 | ) | ||||||||
|
Depreciation
|
(12,884 | ) | (12,553 | ) | (11,414 | ) | (48,284 | ) | ||||||||
|
General
and administrative costs
|
(4,537 | )* | (1,957 | )* | (1,989 | )* | (12,785 | )** | ||||||||
| (26,767 | ) | (23,143 | ) | (21,845 | ) | (96,662 | ) | |||||||||
|
Income
from vessel operation
|
17,535 | 17,367 | 25,030 | 121,288 | ||||||||||||
|
Interest
income
|
208 | 132 | 217 | 931 | ||||||||||||
|
Interest
expense
|
(533 | ) | (301 | ) | (1,832 | ) | (3,374 | ) | ||||||||
| (325 | ) | (168 | ) | (1,615 | ) | (2,443 | ) | |||||||||
|
NET
INCOME
|
17,210 | 17,198 | 23,415 | 118,844 | ||||||||||||
|
Earnings
per average number of shares
|
0.46 | 0.50 | 0.78 | 3.63 | ||||||||||||
|
Weighted
average number of shares
|
37,424,291 | 34,373,271 | 29,975,312 | 32,739,057 | ||||||||||||
|
Common
shares outstanding
|
37,893,679 | 34,373,271 | 29,975,312 | 34,373,271 | ||||||||||||
|
*)
|
The
G&A for the three months ended Mar.31, 2009, Dec. 31, 2008 and Mar.
31, 2008 include non-cash charges of $2.9m, $0.3m and $0.5m respectively
which are charges related to share based compensation, the 2004 Stock
Option Plan and pension cost.
|
|
**)
|
The
G&A for the twelve months ended Dec. 31, 2008 include non-cash charges
of $6.2m which are charges related to share based compensation, the 2004
Stock Option Plan and pension cost.
|
|
CONDENSED
BALANCE SHEETS
|
Mar.
31, 2009 (unaudited)
|
Dec.
31, 2008 (unaudited)
|
||||||
|
Cash
deposits
|
109,319 | 31,378 | ||||||
|
Accounts
receiveable
|
35,057 | 40,335 | ||||||
|
Other
current assets
|
22,658 | 22,406 | ||||||
|
Vessels
|
752,500 | 707,853 | ||||||
|
Other
long term assets
|
19,684 | 11,906 | ||||||
|
Total
Assets
|
939,218 | 813,878 | ||||||
|
Accounts
payable
|
2,247 | 1,947 | ||||||
|
Accrued
liabilities
|
4,048 | 4,267 | ||||||
|
Accrued
long-term liability
|
4,604 | 4,078 | ||||||
|
Long-term
debt
|
46,000 | 15,000 | ||||||
|
Shareholders'
equity
|
882,319 | 788,586 | ||||||
|
Total
liablilities and shareholders' equity
|
939,218 | 813,878 | ||||||
|
CONDENSED
STATEMENTS OF
CASH
FLOW
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||
|
March
31, 2009 (unaudited)
|
March
31, 2008 (unaudited)
|
Dec.
31, 2008 (unaudited)
|
||||||||||
|
OPERATING
ACTIVITIES
|
||||||||||||
|
Net
cash from Operating Activitites
|
29,574 | 10,316 | 127,900 | |||||||||
|
FINANCING
ACTIVITIES
|
||||||||||||
|
Net
proceeds from sale of Common Stock
|
107,147 | 0 | 158,891 | |||||||||
|
Proceeds
from use of Credit Facility
|
46,000 | 10,000 | 25,000 | |||||||||
|
Repayment
of debt
|
(15,000 | ) | 0 | (115,500 | ) | |||||||
|
Deposit
on vessels
|
0 | (130 | ) | 0 | ||||||||
|
Loan
facility costs
|
0 | 0 | (2,316 | ) | ||||||||
|
Dividends
paid
|
(32,968 | ) | (14,988 | ) | (165,886 | ) | ||||||
|
Net
Cash provided by (used for) Financing Activities
|
105,179 | (5,118 | ) | (99,812 | ) | |||||||
|
INVESTING
ACTIVITIES
|
||||||||||||
|
Investment
in Vessels
|
(56,812 | ) | (359 | ) | (10,053 | ) | ||||||
|
Net
cash used by investing activitites
|
(56,812 | ) | (359 | ) | (10,053 | ) | ||||||
|
Net
Increase in Cash and Cash Equivalents
|
77,942 | 4,839 | 18,036 | |||||||||
|
Beginning
Cash and Cash Equivalents
|
31,378 | 13,342 | 13,342 | |||||||||
|
Ending
Cash and Cash Equivalents
|
109,319 | 18,181 | 31,378 | |||||||||
NORDIC
AMERICAN TANKER SHIPPING LIMITED
Reconciliation
of non-GAAP financial measures
(Amounts
in USD '000)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Mar.
31, 2009
|
Dec.
31, 2008
|
Mar.
31, 2008
|
Dec.
31, 2008
|
|||||||||||||
|
Voyage
revenue
|
45,146 | 40,872 | 51,726 | 228,000 | ||||||||||||
|
Voyage
expenses
|
-844 | -362 | -4,851 | -10,051 | ||||||||||||
|
Net
voyage revenue (1)
|
44,302 | 40,510 | 46,875 | 217,950 | ||||||||||||
|
Three
Months Ended
|
||||||||||||
|
Mar.
31, 2009
|
Dec.
31, 2008
|
Mar.
31, 2008
|
||||||||||
|
Income
from vessel operations
|
17,535 | 17,367 | 25,030 | |||||||||
|
Depreciation
|
12,884 | 12,553 | 11,414 | |||||||||
|
Non-cash
general & adminstrative costs
|
2,870 | 300 | 507 | |||||||||
|
Operating
Cash Flow (2)
|
33,289 | 30,220 | 36,951 | |||||||||
|
(1)
|
Net
voyage revenues represents voyage revenues less voyage expenses such as
bunker fuel, port fees, canal tolls and brokerage commissions. Net voyage
revenues is included because certain investors use this data to measure a
shipping company's financial performance. Net voyage revenues is not
required by accounting principles generally accepted in the United States
and should not be considered as an alternative to net income or any other
indicator of the Company's performance required by accounting principles
generally accepted in the United
States.
|
|
(2)
|
Operating
cash flow represents income from vessel operations before depreciation and
non-cash administrative charges. Operating cash flow is included because
certain investors use this data to measure a shipping company's financial
performance. Operating cash flow is not required by accounting principles
generally accepted in the United States and should not be considered as an
alternative to net income or any other indicator of the Company's
performance required by accounting principles generally accepted in the
United States.
|
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters
discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts.
The
Company desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words "believe,"
"anticipate," "intend," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions identify
forward-looking statements.
The
forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible to
predict and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. We undertake
no obligation to update any forward-looking statement, whether as a result of
new information, future events or otherwise.
Important
factors that, in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand in the tanker market, as a
result of changes in OPEC's petroleum production levels and world wide oil
consumption and storage, changes in our operating expenses, including bunker
prices, drydocking and insurance costs, the market for our vessels, availability
of financing and refinancing, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from pending or
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hire, failure on the part of a seller to
complete a sale to us and other important factors described from time to time in
the reports filed by the Company with the Securities and Exchange Commission,
including the prospectus and related prospectus supplement, our Annual Report on
Form 20-F, and our Reports on Form 6-K.
Contacts:
Scandic
American Shipping Ltd
Manager
for:
Nordic
American Tanker Shipping Limited
P.O
Box 56, 3201 Sandefjord, Norway
Tel:
+ 47 33 42 73 00 E-mail: nat@scandicamerican.com
Rolf
Amundsen, Investor Relations
Nordic
American Tanker Shipping Limited
Tel:
+1 800 601 9079 or + 47 908 26 906
Gary
J. Wolfe
Seward
& Kissel LLP, New York, USA
Tel:
+1 212 574 1223
Turid
M. Sørensen, CFO
Nordic
American Tanker Shipping Limited
Tel: +
47 33 42 73 00 or + 47 905 72 927
Herbjørn
Hansson, Chairman and Chief Executive Officer
Nordic
American Tanker Shipping Limited
Tel:
+1 866 805 9504 or + 47 901 46 291
SK 01318 0002
993457