Nordic American Tankers Ltd (NYSE:NAT)
In the autumn of 2017, we advised you of our time charter activities/contracts with oil companies such as Shell, BP, ExxonMobil and other major oil companies in the West and in the East. The contract with ExxonMobil has expired but we do work for them on a regular basis.
From time to time we also have shorter contracts (typically up to 90 days) for ships serving as storage space for major companies and large oil traders.
In our message to investors of January 16, 2018 we informed you of the one year term charter with the major Spanish oil company Cepsa. The ship in question is the Nordic Castor (2004). The contract has now started and is fixed and firm. The fact that NAT has only one million barrel suezmax ships allows us to achieve economies of scale. The agreed rate secures a good cash flow.
There are now 33 one million barrel ships in the NAT fleet. Three are newbuildings to be delivered in the second half of 2018. 5 of our 33 ships are employed on long term time charters with major oil companies.