SEC Form 6-K filed by Nordic American Tankers Limited
NORDIC AMERICAN TANKERS LIMITED
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(registrant)
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Dated: November 30, 2023
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By:
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/S/ HERBJØRN HANSSON
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Herbjørn Hansson
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Chairman, President, and Chief Executive Officer
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– The direction is up in a strong market
1 |
For decades, the experience is that uncertain times create demand for our ships. We see that there is a scarcity
of tankers. The NAT fleet is busy supplying energy to many parts of the world. NAT has not loaded Russian oil for several years. Our main customers, the major oil companies know that our ships are first class and they know they can always
rely on Nordic American.
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2 |
Inflation in the US came in at 3.2% in October, down from 9.1% a little more than a year ago. The
US economy is on the right track and China is also taking steps to stimulate its economy. Oil will continue to be an important commodity for all major economies for a long time. It is anticipated that world oil demand will grow also in
2024.
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3 |
The net income for the first nine months of 2023 is more than $100 million higher than for the same period last year. The net
income for the first nine months of 2023 totaled $81.2 million compared to the net loss of -$20.9 million during the first nine months of 2022. The third quarter in 2023 came in with a net income of $7.5 million.
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4 |
The average Time Charter Equivalent (TCE) for our spot vessels (15) during the third quarter of 2023 came in at $32,832 per day
per ship. Including vessels on term contracts (4), the total average NAT TCE was $31,235 per day per ship. During the same quarter last year the TCE was $27,850 per day per ship. Similar to the other quarters this year, this is one of the
strongest third quarter TCE’s ever achieved in NAT’s 28-year history as a listed company. The operating costs per day per ship are about $9,000.
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5 |
Bookings for the fourth quarter of 2023 indicate a strong fourth quarter. About 73% of our spot voyage days for the fourth
quarter of 2023 have now been booked at an average TCE of $43,160 per day per ship. There is a scarcity of our type of ships, leading to better results and higher dividend.
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6 |
We are scheduled to take delivery of the recently purchased suezmax tanker, to be named “Nordic Hawk”, on December 4, 2023.
Nordic Hawk is the name of the first vessel in the NAT fleet following our US stocklisting in 1995. Including Nordic Hawk our fleet stands at 20 Suezmax tankers.
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7 |
The dividend for the third quarter of 2023 is 6 cents ($0.06) per share. The Dividend is payable January 17, 2024 to
shareholders of record as of December 20, 2023. Higher earnings will result in higher dividends.
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8 |
NAT has one of the lowest debt levels among publicly listed tanker companies. Our net debt stood at $170.8 million, equal to $9 million per ship at September 30, 2023. The objective of NAT clearly remains to become free of debt.
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9 |
The NAT fleet of versatile suezmax tankers offer flexibility in loading and discharging ports. Through careful
voyage planning and adjustment of speed of our vessels, we reduce emissions. Each individual ship in The NAT fleet is of excellent technical quality, as demonstrated in the vetting performance, the score board undertaken by our customers.
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1) |
The total outstanding balance to CLMG/Beal Bank, was $87.7 million as of September 30, 2023, including current portion of the debt.
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2) |
The 5 vessels financed through Ocean Yield have as of September 30, 2023 a total outstanding balance of $170.2 million, including current portion of the debt.
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NORDIC AMERICAN TANKERS LIMITED
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATION
(UNAUDITED)
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Three Months Ended
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Nine Months Ended
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Amounts in USD '000 |
Sept. 30, 2023
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Jun. 30, 2023
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Sept. 30, 2022
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Sept. 30, 2023
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Sept. 30, 2022
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Net Voyage Revenue
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48,036
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67,796
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47,382
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202,927
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97,728
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Vessel Operating Expenses
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(14,607
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)
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(15,922
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)
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(14,829
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)
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(44,483
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)
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(48,212
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)
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Depreciation Expenses
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(12,669
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)
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(12,726
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)
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(12,299
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)
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(38,119
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)
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(37,688
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)
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Gain on Disposal of Vessels
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0
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0
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1,173
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0
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28
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General and Administrative Expenses
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(6,292
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)
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(5,002
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)
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(4,282
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)
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(17,034
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)
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(13,712
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)
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Operating Expenses
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(33,568
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)
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(33,650
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)
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(30,237
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)
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(99,636
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)
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(99,584
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)
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Net Operating Income (Loss)
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14,468
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34,146
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17,145
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103,291
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(1,856
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)
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Interest Income
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604
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352
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98
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1,260
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115
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Interest Expense
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(7,556
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)
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(7,704
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)
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(7,278
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)
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(23,294
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)
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(19,008
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)
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Other Financial Income (Expenses)
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(29
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)
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15
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43
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(49
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)
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(182
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)
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Total Other Expenses
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(6,981
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)
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(7,337
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(7,137
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(22,083
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)
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(19,075
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)
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Net Income (Loss)
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7,487
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26,809
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10,009
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81,208
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(20,931
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)
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Basic and Diluted Earnings (Loss) per Share
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0.04
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0.13
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0.05
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0.39
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(0.10
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)
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Weighted Average Number of Common Shares Outstanding
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208,796,444
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208,796,444
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206,904,866
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208,796,444
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199,705,596
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Common Shares Outstanding
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208,796,444
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208,796,444
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208,796,444
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208,796,444
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208,796,444
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CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
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Amounts in USD '000
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Sept. 30, 2023 |
Dec. 31, 2022
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Cash and Cash Equivalents
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69,151
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59,583
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Restricted Cash
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4,893
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3,719
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Accounts Receivable, Net
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21,960
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20,474
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Prepaid Expenses
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5,184
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5,975
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Inventory
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22,192
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25,430
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Voyages in Progress
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7,238
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23,997
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Other Current Assets
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1,998
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3,484
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Total current assets
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132,616
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142,662
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Vessels, Net
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702,239
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735,134
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Other Non-Current Assets
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1,477
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2,087
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Total Non-Current Assets
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703,716
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737,221
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Total Assets
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836,332
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879,883
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Accounts Payable
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3,988
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6,960
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Accrued Voyage Expenses
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5,913
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11,315
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Other Current Liabilities
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10,514
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14,439
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Dividends Payable
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27,144
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0
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Current Portion of Long Term Debt
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25,865
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39,700
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Total Current liabilities
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73,424
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72,414
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Long-Term Debt
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229,308
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266,337
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Other Non-Current Liabilities
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660
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1,150
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Total Non-current Liabilities
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229,968
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267,487
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Shareholders' Equity
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532,940
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539,982
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Total Liabilities and Shareholders' Equity
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836,332
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879,883
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NORDIC AMERICAN TANKERS LIMITED
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(UNAUDITED)
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Nine Months Ended |
Twelve Months Ended
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Amounts in USD '000
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Sept. 30, 2023 |
Dec. 31, 2022
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Net Cash Provided by Operating Activities
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126,073
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24,134
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Investment in Vessels
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(484
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)
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(5,116
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)
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Investment in Newbuildings
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0
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(90,301
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)
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Proceeds from Vessel Sales
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0
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81,074
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Net Cash Used in Investing Activities
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(484
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)
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(14,343
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)
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Proceeds from Issuance of Common Stock
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0
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49,096
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Proceeds from Vessel Financing
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0
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88,000
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Repayments of Vessel Financing
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(10,592
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)
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(11,476
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)
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Repayment of Borrowing Facility
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(41,529
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)
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(93,933
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)
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Dividends Distributed
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(62,639
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)
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(22,682
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)
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Net Cash Provided by (Used in) Financing Activities
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(114,760
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)
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9,005
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Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
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10,829
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18,796
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Effect of exchange rate changes on Cash
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(87
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)
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(142
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)
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Cash, Cash Equivalents and Restricted Cash at Beginning of Period
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63,302
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44,648
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Cash, Cash Equivalents and Restricted Cash at End of Period
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74,044
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63,302
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Cash and Cash Equivalents
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69,151
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59,583
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Restricted Cash
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4,893
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3,719
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NORDIC AMERICAN TANKERS LIMITED
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
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Three Months Ended
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Nine Months Ended
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Amounts in USD '000
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Sept. 30, 2023
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Jun. 30, 2023
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Sept. 30, 2022
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Sept. 30, 2023
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Sept. 30, 2022
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Voyage Revenue
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78,450
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99,100
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104,879
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298,983
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229,133
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Voyage Expense
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(30,414
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)
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(31,304
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)
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(57,497
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)
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(96,056
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)
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(131,405
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)
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Net Voyage Revenue (1)
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48,036
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67,796
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47,382
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202,927
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97,728
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Three Months Ended
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Twelve Months Ended
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Amounts in USD '000
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Sept. 30, 2023
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Jun. 30, 2023
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Sept. 30, 2022
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Dec. 31, 2022
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Net Income
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7,487
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26,809
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10,009
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15,101
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Interest Expense (Income), net
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6,952
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7,352
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7,180
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26,698
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Depreciation Expense
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12,669
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12,726
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12,299
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50,421
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EBITDA (2)
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27,108
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46,887
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29,488
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92,220
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Gain on Disposal of Vessels
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0
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0
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(1,173
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)
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(5,691
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)
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ADJUSTED EBITDA
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27,108
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46,887
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28,315
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86,529
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(1)
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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.
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(2)
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EBITDA is included because certain investors use this data to measure a shipping company's financial performance. EBITDA 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.
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Contacts:
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Alexander Kihle, Finance Manager
Nordic American Tankers Limited
Tel: +47 91 72 41 71
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Bjørn Giæver, CFO
Nordic American Tankers Limited
Tel: +1 888 755 8391
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Web-site: www.nat.bm
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