Nordic American Tankers Limited (NAT) 7 Mar 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Nordic American Tankers Investors Conference Call. I would now like to turn the call over to Herbjørn Hansson, Founder, Chairman, CEO. Please go ahead.

Thank you. Thank you, Mondi and good morning to you. be you. to pleasure a together with It’s And our company will talk future of about the and we today the way forward.

I Nordic introduction, general an will observations some As on position of American. make the

up when a ships, too And I happening value the the few and scarcity time ships Our marketplace? of the rates this And question, is at there what in in clearly go way, there view that ships, will few up. is first ships, go are in too ask, is of there marketplace. are

the there Our mile, transportation main Stock seeing as And been called And New focus we at is have that on the XXXX. see all is are since and York Nordic work which very transportation clearly in on worldwide so Exchange ton do we listed the same our we is world. operations. over we the that increasing. this time have And business listed American is work.

Japan, Korea ship but in I weeks if have that we X a can have in East. in so, We necessarily often every we China. not China, are tell it or in in and India. China, I call in every business you would Collectively, week, also about

like. an lifting Middle we on started of And have And oil Shell, British also lot oil, business we And of main if And – Saudi from to the Arabia. field, our mention ExxonMobil, And a and in big what interesting essentially the a oil other in development focus we oil customers would which by I are and had the focus ExxonMobil. evidently, companies, the in transportation in Guyana we again, big East our there and America. parts have work. also main Petroleum presence call world. I one is that is That is you we managed South is

have is Head me been of in and with Saudi understanding a country. friends oil Arabia. Saudi of XX top the One Yanbu, has that in and Monaco living links Saudi very for We Arabia lift has closed Alexander we of my he in the Saudi the closer country. Arabia friends, close Arabia helping years from lot of our in he was he Port at and Operation Hansson, he in

big the the Nordic what from to to X.X I question is lifting forward? emphasize happen Russian in the we Sea, we XX not the in years a we carried Baltic the where done Port associated I since ago is we to In that. like which oil, And that large with last past, Ukraine. is American, extent months. question have were oil, in but lifted would situation Primorsk Russian have oil – mention like and And the and from note in group will in the of would our Russia going it

general would say is a hoarding. of times, I we uncertain the for notion observation, our always business, As in good because see that uncertainty

imbalance an this have is enough is to coming because there supply of between see demands You capacity wish care demand we reserve simply out. take And time tonnage and of to tonnage. there not

Federal be question. that’s And not And course in person. a and nervous? about the not understanding to nervous like is people. place not I impacts is question that. if probably about follow am the you the of We the And seem would the Nordic then asked a to I the often of Reserve. American. are And action for of are stage am speaking, how is Reserve Federal to closely of respond of tanker observers financing business, people forget our right investor and am of you the bad I always action I American why that man if the market that the the very good Because to our some concerned it this Generally for business. business to tell you other

We main we free that repay repaid Bank our expect the we level our company to and debt, to increase situation last And I of Dallas now that that we have have Bank clearly Dallas. from them all And in will in strongly the raise note which excellent today and give a we in Beal partner, be are a see being as or creditor. all or priority would repaid wish a clearly a we debt year able see And over a to dividend now expect when our debt are to we position have repaid in and to our Beal to we in this of to dividend then two so. a year They significantly few not dividends. are years very we to dividends we company.

remain quarters. will have and priority. more And has is for We been dividend the and consecutive paid than our XXX dividend

We will that leave never policy.

And in have American company hidden far our mid also as are us. wish like before America with our listed Yield, to business, cooperation to is by had in see open. our very owned them excellent. to as is with Massachusetts. America do in number everything controlled is There it the been have which mentioned, Nordic Boston, the ships would I nothing we our business financed stock transparent. Ocean many comes and excellent When KKR been, They about is operating as that now parties mention a new or we the XXXXs. we cooperation who that. is is since concerned. And in company And there of I our with

our Total do through management. reduce emissions note ExxonMobil. oil main the government. now Of talking speed able by our We reduce see Norwegian I our importance, are the major major I which also emission. talking special ships I Norwegian is and French the Equinor, we companies the customers. controlled are – company, am the like about we Shell, that and from how major and oil to active Petroleum would about British am also group,

about the not this don’t When a then consume of XX went board, today. more we full big speed I on will And past a we fact. When slow because go bunker are area ships, bunker have in cargo ago, we of we go the people consuming quite tons full we our speed slow a years speed. oil. XX explain in oil. more same our with we we much and XX than tons the difference. into ship, with go we few detail, ships with aware When That’s a go about loading are speed

first. to I people whether request questions. give I sitting to you just are be ask believe. felt I would – camera now you Mondi, Coordinator, this Mr. And will asking to I in like introduction And

company Thank around are and We you, I am have Coordinator. the position. in very in that a And Mr. we all enthusiastic so world. many at excellent and elsewhere America supporters

Instructions] [Operator from first from sir. you, Omar of Thank Our the Nokta proceed. line comes question Jefferies. Please

Thank update. the clearly for you. here year. Hi, rates strong for just a Tanker Thanks Herbjørn. about been have

at tanker year of don’t you put Going to a you have a on lot. going ears, this plus seen many XXs plenty too want now, into market the least but have experience I back. got in

the is in the off have based to how characterize you of cycle would you and versus what how what past? seen developing, seen ask to wanted this just outlook we here have So you

than seen don’t now. have think a condition better I I

increase Black I in us. that’s point, Swan I have And is And tankers. conditions make And the been for simply we point. that in discuss to Swan Swan that year, of a the one for XX there because the the this in as go. I two out comes is am I time concerned three. the it I call low time to front committed And a seriousness, So have think a next very only this seeing There of excellent. I are become will am of the don’t We that, great I difficulty see. is details about Black in special during continuing something almost or Black main with business business say be fleet could order at long years. but But would new also always no you never

also upon and major good I group. Secondly, had that good is and with We they know and business that to our sure only for what and have people we that wish principle mentioned we do ships our look they we oil see of know and people course good in is we have do main they transparency main customers, ships. the good

by an the of our customers. record that so-called inspection ships have We excellent vetting is

in We the best record vetting have industry. the

Sorry for you a gives but Omar, talking time, long I hope for background. this a such

you and it’s set the the NAT forward. that’s paid does. to have dividend highlight once about how you earnings, up that payout XXX%, ratio take is percentage the off? then does XX we a a And you. component interesting about ‘XXs, get you dividend? key very It whether you over mentioned to XX%, No, you repaid that’s Beal thinking a and founding a mentioned up, next want or in are then stepping as Thank as since are dividends paid facility to Beal so the threshold? XXX Bank you Is the the certain its get you too, the certain setup obviously move just You hopefully, a what follow thinking there months, XX%, that of been of it’s facility

little our Chief bit Bjørn Giæver that Financial question. to Bjørn elaborate like colleague, I on would to a ask please. Officer, my

hi, Yes, Omar.

NAT Beal once suitable double a dividend the could maturity, ratio, cash everything policy think see distribute levels, paid a today’s don’t on find we our equal, usually the else easily shareholders mean have is and dividend payout ever being from with usually that think has happy had out double today’s from the that. the I of facility been I And level? could or back you I excess putting payout we

buy group quite last I family about Monaco and shares. very in confident son, lot and that American in I I would of a Alexander Omar, are and tell am the biggest he he a now And Nordic lot And has have must I did private note, I week shares the shares. future. my of my you.

never to and is what in anything, future future communicate is to and is but about the of who we will have about judge But believe to what Because holding. our here effectively. people those know job not which we never, knows we the that wrong have many you. are we you judgment. nobody and the our have course, say openly, job them And tell my we communicate Of future. Thank to

that so good. and Thank quarterly. you. doubling potentially $X.XX appreciate a going the where up $X.XX really Well, to from would payout for forward, Thanks dividend the color, take I your thanks Herbjørn. Bjørn sets interesting definitely

Omar. you, Thank

Riley. comes B. next proceed. Burke Our from Please of question Liam from the line

afternoon, you. Herbjørn. Bjørn. afternoon, Thank Good Good

Good afternoon to you, sir.

you some Could see to give you pointed your to a Omar, as it Herbjørn, better sense Do heavily do to does market to haven’t for as us fleet. strategy? market rates opportunities change or lock basis? the more out in chartering charter you you a time to you on want seen lean your spot –

And But to do let debt the Let so must use one is eyes nobody an can me to English to is have but become goal. of to to Founder And shareholder know, in know become objectives Board going don’t say, the debt large people I think ask Because otherwise, free. and Chairman point, we on a raking for the time. I But have me because good you and back if there it’s I about feeling in long know have would I I I we large And an mean, not American what we we are point. except know, don’t Because of important the a what had Yes, it this to the that’s the didn’t supplement our free, to forward, job. another And this future, the I if expression, now future. we had have our a to my about we me. the understanding diluted, and to But our when we clear. but can easy and main find goal American hang we in main going assure And very cannot at respond may are coming will and large you, it’s flexibility, all I have as I position. that. that not money. believe can are rather must future. number fleet isn’t decide, all, And when Bjørn exciting. good, I I are group, objective then decide I have

Hi Liam.

highly it’s which volatile a think our I we in leverage. operational do think business, is fairly high cyclical, and have I

we reason, will talked tankers our XX trading of dividends, increase for to down want our that And our again we market. the like leverage XX facility, the pay-down which having allow us are spot Beal financial continue We this about. to take to so we

change So, I – in think are that I near-term. don’t we guess the going to that’s

Fair enough.

You or in added And and and interest delivery two you would go attach the new by vessels do several you them? longer of have took order to some you years oil term Suezmaxes charters new just any back, it? majors,

[indiscernible], a wish In present to that not sorry we – we We now. situation, say world major But fact. important class And the to rely biggest the don’t ways am had am to us. I relationship we we always for the improve. close I That we that proud have I for looking the priority, they say them. long-term And room And out know saying sorry, they our are to first is But always room on rely know with oil is first them. companies, like am they on the am that not class we in is I because people. ships, and the are charter improvement.

I will be is if that think you I the are probably tanker early now for it And right challenge order for to delivered, of me, a XXXX. lot today, a people going think

very that So, of to is the not the it’s for time for market yes. to decision in starting order one It’s a the these going has still tanker a why quarters book And continue long-term strong for is very long with charter couple while. reasons commit be of And low, good XXXX. moved. tankers after to even to long that a new earnings, lead in order

And would And probably of the of I a ours, like ships, And in should I we when now out ships two $XX $XX recent price we said the when at about was million. be $XX close the excess, said be had I he ordered add, would feelings to paid of $XX mad order our million. what price that million, we would million. and associate two we $XX have market, in million,

and And we I gives rooms that for it stability anymore. stability important us so is that mentioned gives as us financial when few don’t the financial a have us, and

you, Thank Herbjørn. you, you. Thank Thank Bjørn.

Mondi? coordinator? else, Anybody

do Steed, We a [Operator the have Thomas from Please Instructions] Investor. question of Private proceed. line

a Mr. Yes. am to one. a my one. you Hansson, Investor. is Private financial practical question And It’s I not a

your man tanker like engineer, would see, marine. marine United pursues is I majority You licensed and the I deck nationality masters’ States of a the what licensed merchant am in And please? to know their

from have to We some top the the ships with only Philippine nationals bottom.

XX with in We have And we Philippines very for there. are been position the the years. familiar

to wish And Secondly, I stay work unfortunate can they I on Ukrainians go see the also, don’t we And is the to have the two, do to can cooperation hang Thank you between American war, summary, I ship. Stock we have ships is you, is on that can and a the pressure in rules. now very But York number on onboard observe going seen tell is very go a And In you principle that to are good. been to ships we sure. you, cooperation these have And our disembark you. at and excellently listed rules the ship. in because they are today, are Russians When Point that also come lot. infringe time. commitment they very for Russians one. And on. procedures. together, tell embark. onboard we governing number the they wish and always way those tell Ukrainians. not America We are main there going point America, when That sir. all rules. their war And excellently our main the Exchange, That’s And Russians join our our you unfortunate situation. or to New on to ships, home we strict allowed must American has not the

I have I follow-up, may. if sir, a

Absolutely.

a as good we XXXX and since investor people. an been have good man, I you said, and ships tanker have

am is one had that for have for Thank major or I be groundings efficiently collisions. time shareholder engineers. our NAT it we just officers your reason, you obviously, a noticed with of haven’t proud And and Now, very any run to today. I

and can sideways, have per you, it received they And who achievement can an it see it you, go dividend for a you your Nordic up $XX sir. Mondi, down. that I with New those us sir, we in going that can sorry, definitely thank thank questions? interest, it. the for had But about quite run Also, goes mid-XXs, this. York it a goes go company, since go mid-XXs, goes share. if XX-days you as And been other based any is my judgment. tell sideways, listed American, with cannot it can in the is down. shareholder we And company either being the company and up, because periods, on Thank and down,

We Ken have one question Please do Davidson, proceed. private investor. final from

dollar that Do out perhaps much in $XX,XXX. I relatively some about wanted case? that yes. area was of that of were right to recently, under And tankers the… that when don’t that back that they the have contract contracts. but Was communications new exactly delivered, the the that spot that Oman, long-term was Hi, were are what thought have I And two go the XXs, I question to to XXs. at amount asked under last the low put contracts, Sultanate higher was, put the spot Whereas now, contracts. for the I I believe remember time, it that than of you instance the the

XXXX, these charted out them You X that. the ships, version time, or stability wrong. Short it the at for When chartered had but charted create in to out we wrong. it’s financial had like always we out the business. years them something we it ‘XX you And is,

You we much that when appreciate in the cooperation Oman into of But are the very look the you East. one the setback done mirror, you closest Sultanate America do could Oman. looking our enjoy And know, have you of that. is to of We mirror, differently. allies always with Middle

So, we Oman, we is including friendly sir. you, expand for my business are in shareholders, very own our that to way a are we able the And good with should Thank which with be family. hopeful them.

Oman, contract under of with with were up amount. following the two indeed So, higher the – tankers new Sultanate for new long-term the a that put but

than or mid-XXs, much mentioned, so. ‘XX ‘XX Yes, [indiscernible] made or almost higher

you much. very Thank you. Thank

Mondi, any questions? other

would more turn call over There are no closing to questions, sir. I remarks. to like now Hansson the Herbjørn for

Thank much today. for very you in calling

You to any are free colleagues call or of any question. me my time,

us for much of which will, call in would never about for learning afternoon. yesterday, we call on than taking with us process And very much We very to to we thank or industry. be were indeed my We was you have it better reason, always and stop. time quite a believe tomorrow encourage But fact know that must a the we lot and than are because spending you Thank this we the today I pleasure your you you good time. here. have will

and for you, your gentlemen. Thank Thank call. ladies you today’s conclude does This participation.

now may disconnect. You