Is the One Cent Dividend Enough to Arrest NAT’s Stock Slide?

Nordic American Tankers: Market Recovery on Horizon; Higher Pay-Outs to Support Stock

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Equity Bottom-Up

Nordic American Tankers / Equity Bottom-Up

Nordic American Tankers ( NAT US)- High Spot Exposure to Hurt Revenue and Profitability<ul><li>
Revenue above expectations; earnings in line with estimates: Nordic American Tankers’ (NAT’s) operating revenue excluding a settlement gain of USD 5.3m fell 29.6% y/y in 3Q16 to USD 71.7m (north of our estimate of 58.3m) from the levels in 3Q15. NAT’s revenue fell even though its fleet increased as the average realised freight rate plunged more than 50% y/y to USD 16,700pd. TCE revenue dropped 39.2% y/y to USD…</li></ul>

Nordic American Tankers ( NAT US)- High Spot Exposure to Hurt Revenue and Profitability
Revenue above expectations; earnings in line with estimates: Nordic American Tankers’ (NAT’s) operating revenue excluding a settlement gain of USD 5.3m fell 29.6% y/y in 3Q16 to USD 71.7m (north of our estimate of 58.3m) from the levels in 3Q15. NAT’s revenue fell even though its fleet increased as the average realised freight rate plunged more than 50% y/y to USD 16,700pd. TCE revenue dropped 39.2% y/y to USD…

Nordic American Tankers ( NAT US)- High Spot Exposure to Hurt Revenue and Profitability