Highlights:
As regards the recent political events in Russia and Ukraine, we shall comment later when matters are more clear.
1. On a Time Charter Equivalent (TCE) basis, fourth quarter 2021 was the best quarter of the last five quarters. We take comfort from an improving trend in both top- and bottom-line results.
2. The average TCE for our active fleet during the fourth quarter 2021 came in at $10,100 per day per ship. This was up 74% from the previous quarter of $5,800 per day.
3. We recorded a net loss of -$21.0 million or an EPS of -$0.12 for the fourth quarter 2021. The adjusted EBITDA was $1.9 million. The net loss for the previous quarter was -$44.6 million, a corresponding EPS of -$0.27 and an adjusted EBITDA of -$12.3 million.
4. Our two newbuildings under construction by Samsung in South-Korea are scheduled for delivery in May and June 2022. The construction of these vessels are progressing on schedule. The remaining payments to the shipyard are fully financed.
5. On February 9, 2022, we entered into two six-year contracts for our two newbuildings, mentioned above. The accumulated TCE revenue from these six-year contracts is in excess of dollar 100 million. The two contracts will secure earnings, cash flow and financial stability. The Charterer of both vessels are ASYAD shipping co., a company controlled by the Sultanate of Oman.
6. Asset values continue on a firm note. On February 18, 2022, the “Nordic Mistral” was delivered to new owners. After the transaction our fleet counts 23 units. This is the second vessel we have sold since we announced such plans in our July 28, 2021 press release.
7. The aggregate proceeds from the above mentioned sales of about $30 million have been used to pay down debt. During 2021 and until today we have paid down $56.2 million in debt.
8. NAT has one of the lowest debt levels among publicly listed tanker companies. The company’s net debt per december 31, 2021 is $245.3 million or $11.1 million per vessel. Our Gross loan-to-value ratio is currently 49%. this provides the company with financial flexibility. Our objective is to become debt free.
9. Global oil demand is nearing pre-pandemic levels of early 2020. Oil production is increasing, slowly, but surely. We expect that the tanker markets will gradually improve during the year and hit an inflection point in utilization that can create a very interesting market for our fleet. With global oil inventories at critically low levels now, this could happen sooner than later.
10. The cash dividend for 4Q 2021 is 1 cent ($0.01) per share, payable on Wednesday March 30, 2022, to shareholders on record Friday March 11, 2022. This is our 98th consecutive quarterly dividend payment.
11. Financial information for the fourth quarter of 2021 and for other periods can be found in the attached report at the end of this press release.
Source: Hellenic Shipping News
