NORDIC AMERICAN TANKERS LIMITED
|
||
(registrant)
|
||
Dated: September 29, 2023
|
By:
|
/S/ HERBJØRN HANSSON
|
Herbjørn Hansson
|
||
Founder, Chairman and Chief Executive Officer
|
Vessel
|
Yard
|
Built
|
Nordic Apollo
|
Samsung
|
2003
|
Nordic Pollux
|
Universal
|
2003
|
Nordic Luna
|
Universal
|
2004
|
Nordic Castor
|
Universal
|
2004
|
Nordic Freedom
|
Daewoo
|
2005
|
Nordic Sprinter
|
Hyundai
|
2005
|
Nordic Skier
|
Hyundai
|
2005
|
Nordic Vega
|
Bohai
|
2010
|
Nordic Light
|
Samsung
|
2010
|
Nordic Cross
|
Samsung
|
2010
|
Nordic Breeze
|
Samsung
|
2011
|
Nordic Zenith
|
Samsung
|
2011
|
Nordic Star
|
Sungdong
|
2016
|
Nordic Space
|
Sungdong
|
2017
|
Nordic Aquarius
|
Samsung
|
2018
|
Nordic Cygnus
|
Samsung
|
2018
|
Nordic Tellus
|
Samsung
|
2018
|
Nordic Hunter
|
Samsung
|
2022
|
Nordic Harrier
|
Samsung
|
2022
|
Six months ended June 30,
|
||||||||||||
All figures in USD ‘000
|
2023
|
2022
|
Variance
|
|||||||||
Voyage Revenues
|
220,534
|
124,179
|
77.59
|
%
|
||||||||
Voyage Expenses
|
(65,643
|
)
|
(73,908
|
)
|
(11.18
|
)%
|
||||||
Vessel Operating Expenses
|
(29,877
|
)
|
(33,383
|
)
|
(10.50
|
)%
|
||||||
Impairment and Loss on Disposal of Vessels
|
-
|
(1,146
|
)
|
N/A
|
||||||||
Depreciation Expense
|
(25,449
|
)
|
(25,389
|
)
|
0.24
|
%
|
||||||
General and Administrative Expenses
|
(10,742
|
)
|
(9,355
|
)
|
14.83
|
%
|
||||||
Net Operating Income (Loss)
|
88,823
|
(19,002
|
)
|
N/A
|
||||||||
Interest Expense
|
(15,738
|
)
|
(11,713
|
)
|
34.36
|
%
|
||||||
Other Financial Income (Expense)
|
636
|
(225
|
)
|
N/A
|
||||||||
Net Income (Loss)
|
73,721
|
(30,940
|
)
|
N/A
|
Six months ended June 30,
|
||||||||||||
All figures in USD ‘000 except TCE rate per day
|
2023
|
2022
|
Variance
|
|||||||||
Voyage Revenue
|
220,534
|
124,179
|
77.59
|
%
|
||||||||
Less Voyage Expenses
|
(65,643
|
)
|
(73,908
|
)
|
(11.18
|
)%
|
||||||
Net Voyage Revenue (1)
|
154,891
|
50,271
|
208.11
|
%
|
||||||||
Vessel Calendar Days (2)
|
3,439
|
3,712
|
(7.35
|
)%
|
||||||||
Less Off-hire Days (3)
|
(51
|
)
|
(139
|
)
|
(63.54
|
)%
|
||||||
Total TCE days
|
3,388
|
3,573
|
(5.17
|
)%
|
||||||||
TCE Rate per day (1)
|
45,713
|
14,068
|
224.95
|
%
|
(1) |
Management believes that net voyage revenue, a non-GAAP financial measure, provides additional meaningful information because it enables us to compare the profitability of our vessels which are employed under
bareboat charters, spot related time charters and spot charters. Net voyage revenues divided by the Total TCE days provides the Time Charter Equivalent (TCE) Rate per day. Net voyage revenues and TCE rates are widely used by investors and
analysts in the tanker shipping industry for comparing the financial performance of companies and for preparing industry averages. We believe that our method of calculating net voyage revenue is consistent with industry standards.
|
(2) |
Vessel Calendar Days is the total number of days the vessels were in our fleet.
|
(3) |
Scheduled off-hire is 22 days out of the total 51 days for the six months ended June 30, 2023 and 52 days out of the total 139 days for the six months ended June 30, 2022.
|
Total
|
2023
|
*
|
2024 -
2025
|
2026 -
2027
|
Thereafter
|
|||||||||||||||
2019 Senior Secured Credit Facility (1)
|
107,944
|
22,554
|
85,390
|
-
|
-
|
|||||||||||||||
Interest Payments (2)
|
14,832
|
5,489
|
9,343
|
-
|
-
|
|||||||||||||||
Financing of 2018 - built Vessels (3)
|
91,680
|
4,440
|
18,672
|
20,408
|
48,160
|
|||||||||||||||
Interest Payments 2018 – built Vessels (4)
|
34,882
|
4,403
|
15,696
|
11,756
|
3,027
|
|||||||||||||||
Financing of 2022 Newbuildings (5)
|
82,124
|
2,772
|
11,015
|
11,000
|
57,337
|
|||||||||||||||
Interest Payments 2022 Newbuildings (6)
|
54,242
|
4,237
|
15,485
|
13,218
|
21,302
|
|||||||||||||||
Operating Lease Liabilities (7)
|
953
|
352
|
601
|
-
|
-
|
|||||||||||||||
Total
|
386,657
|
44,247
|
156,202
|
56,382
|
129,826
|
(1)
|
Refers to our obligation to repay outstanding indebtedness under the 2019 Senior Secured Credit Facility including the Accordion Loan as of June 30, 2023. The facilities contain a
discretionary excess cash amortization mechanism for the lender that equals 50% of the net earnings from the collateral vessels, less capex provision and fixed amortization. A repayment of $17.3 million in excess cash amortization included
in our balance sheet as of June 30, 2023 and paid in August 2023 is included in the 2023 figures.
|
(2)
|
Refers to estimated interest payments over the term of outstanding indebtedness of the 2019 Senior Secured Credit Facility including the Accordion Loan as of June 30, 2023. Estimate is
based on applicable interest rate as of June 30, 2023 (adjusted for the renegotiated margin discussed above), agreed amortization and amount outstanding as of June 30, 2023.
|
(3)
|
Refers to obligation to repay indebtedness outstanding as of June 30, 2023 for three 2018-built vessels.
|
(4)
|
Refers to estimated interest payments over the term of the indebtedness outstanding as of June 30, 2023 for the financing of the three 2018-built vessels. Estimate based on applicable
interest rates as of August 31, 2023. The SOFR element included in the interest rates are adjusted annually and take place at the anniversaries of the vessels in the third and fourth quarter of the fiscal year.
|
(5)
|
Refers to obligation to repay indebtedness outstanding as of June 30, 2023 for the two 2022 newbuildings.
|
(6)
|
Refers to estimated interest payments over the term of the indebtedness outstanding as of June 30, 2023 for the financing of the two 2022 newbuildings. Estimate based on applicable
interest rates as of August 31, 2023. The SOFR element included in the interest rates are adjusted on a quarterly basis.
|
(7)
|
Refers to the future obligation as of June 30, 2023, to pay for operating lease liabilities at nominal values.
|
Condensed Consolidated Statements of Operations
for the SIX Months Ended June 30, 2023 and 2022 (Unaudited)
|
All figures in USD ‘000, except share and per share amount
|
Six Months Ended June 30,
|
||||||||
2023
|
2022
|
|||||||
Voyage Revenues
|
220,534
|
124,179
|
||||||
Voyage Expenses
|
(65,643
|
)
|
(73,908
|
)
|
||||
Vessel Operating Expenses
|
(29,877
|
)
|
(33,383
|
)
|
||||
Depreciation Expenses
|
(25,449
|
)
|
(25,389
|
)
|
||||
Impairment and Loss on Disposal of Vessels |
- | (1,146 | ) | |||||
General and Administrative Expenses |
(10,742 | ) | (9,355 | ) | ||||
Net Operating Income (Loss)
|
88,823
|
(19,002
|
)
|
|||||
Interest Expenses
|
(15,738
|
)
|
(11,713
|
)
|
||||
Other Financial Income (Expenses)
|
636
|
(225
|
)
|
|||||
Total Other Expenses
|
(15,102
|
)
|
(11,938
|
)
|
||||
Net Income (Loss) Before Income Taxes
|
73,721
|
(30,940
|
)
|
|||||
Income Tax Expense
|
-
|
-
|
||||||
Net Income (Loss)
|
73,721
|
(30,940
|
)
|
|||||
Basic Income (Loss) per Share
|
0.35
|
(0.16
|
)
|
|||||
Diluted Income (Loss) per share
|
0.35
|
(0.16
|
)
|
|||||
Basic Weighted Average Number of Common Shares Outstanding
|
208,796,444
|
196,118,802
|
||||||
Diluted Weighted Average Number of Common Shares Outstanding
|
208,796,444
|
196,118,802
|
Condensed Consolidated Statements of Comprehensive Income (loss)
for the SIX Months Ended June 30, 2023 and 2022 (Unaudited)
|
All figures in USD ‘000
|
Six Months Ended June 30,
|
||||||||
2023
|
2022
|
|||||||
Net Income (Loss)
|
73,721
|
(30,940
|
)
|
|||||
Other Comprehensive Income (Loss)
|
||||||||
Translation Differences
|
(216
|
)
|
(303
|
)
|
||||
Total Other Comprehensive Income (Loss)
|
(216
|
)
|
(303
|
)
|
||||
Total Comprehensive Income (Loss)
|
73,505
|
(31,243
|
)
|
Condensed Consolidated Balance Sheets as of June 30, 2023
and December 31, 2022 (Unaudited)
|
All figures in USD ‘000, except share and per share amounts
|
June 30, 2023
|
December 31, 2022
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and Cash Equivalents
|
96,480
|
59,583
|
||||||
Restricted Cash
|
5,934
|
3,719
|
||||||
Accounts Receivable, Net
|
27,535
|
20,474
|
||||||
Prepaid Expenses
|
5,055
|
5,975
|
||||||
Inventory
|
23,234
|
25,430
|
||||||
Voyages in Progress
|
9,085
|
23,997
|
||||||
Other Current Assets
|
3,364
|
3,484
|
||||||
Total Current Assets
|
170,687
|
142,662
|
||||||
Non-current Assets
|
||||||||
Vessels, net
|
710,118
|
735,134
|
||||||
Right of Use Assets
|
900
|
1,209
|
||||||
Other Non-Current Assets
|
784
|
878
|
||||||
Total Non-Current Assets
|
711,802
|
737,221
|
||||||
Total Assets
|
882,489
|
879,883
|
||||||
Liabilities and Shareholders’ Equity
|
||||||||
Current Liabilities
|
||||||||
Accounts Payable
|
1,712
|
6,960
|
||||||
Accrued Voyage Expenses
|
9,763
|
11,315
|
||||||
Other Current Liabilities
|
8,175
|
14,439
|
||||||
Dividends Payable | 31,319 | - | ||||||
Current Portion of Long-Term Debt
|
42,951
|
39,700
|
||||||
Total Current Liabilities
|
93,920
|
72,414
|
||||||
Long-Term Debt
|
235,782
|
266,337
|
||||||
Operating Lease Liabilities
|
226
|
535
|
||||||
Other Non-Current Liabilities
|
566
|
615
|
||||||
Total Non-Current Liabilities
|
236,574
|
267,487
|
||||||
Commitments and Contingencies
|
|
|
||||||
Shareholders’ Equity
|
||||||||
Common Stock, par value $0.01
per Share; 360,000,000 shares authorized, 208,796,444 and 208,796,444 shares issued and outstanding at June
30, 2023, and December 31, 2022, respectively
|
2,087
|
2,087
|
||||||
Additional Paid-in Capital
|
189,948
|
188,801
|
||||||
Contributed Surplus
|
444,495
|
507,134
|
||||||
Accumulated other comprehensive loss
|
(2,029
|
)
|
(1,813
|
)
|
||||
Accumulated Deficit
|
(82,506
|
)
|
(156,227
|
)
|
||||
Total Shareholders’ Equity
|
551,995
|
539,982
|
||||||
Total Liabilities and Shareholders’ Equity
|
882,489
|
879,883
|
Condensed Consolidated Statements of Cash Flows for the Six
Months Ended, June 30, 2023 And 2022 (Unaudited)
|
|
Six Months Ended June 30,
|
||||||||
2023
|
2022
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net Income (Loss)
|
73,721
|
(30,940
|
)
|
|||||
Reconciliation of Net Income to Net Cash Provided by / (Used in) Operating Activities
|
||||||||
Depreciation Expense
|
25,449
|
25,389
|
||||||
Impairment and Gain (Loss) on Vessels Disposals
|
-
|
1,146
|
||||||
Dry-dock Expenditures
|
(65
|
)
|
(2,278
|
)
|
||||
Amortization of Deferred Finance Costs
|
939
|
2,149
|
||||||
Share-based Compensation
|
1,147
|
57
|
||||||
Other, net
|
45
|
(36
|
)
|
|||||
Changes in Operating Assets and Liabilities:
|
||||||||
Accounts Receivable
|
(7,061
|
)
|
(2,013
|
)
|
||||
Inventory
|
2,196
|
(13,181
|
)
|
|||||
Prepaid Expenses and Other Current Assets
|
1,040
|
(4,808
|
)
|
|||||
Accounts Payable and Accrued Liabilities
|
(13,203
|
)
|
13,147
|
|||||
Voyages in Progress
|
14,912
|
(2,593
|
)
|
|||||
Net Cash Provided by / (Used In) Operating Activities
|
99,120
|
(13,961
|
)
|
|||||
Cash Flows from Investing Activities
|
||||||||
Investment in Vessels
|
(347
|
)
|
(134
|
)
|
||||
Investment in Vessels under Construction |
- | (89,694 | ) | |||||
Proceeds from Sale of Vessels
|
-
|
44,335
|
||||||
Net Cash Used In Investing Activities
|
(347
|
)
|
(45,493
|
)
|
||||
Cash Flows from Financing Activities
|
||||||||
Proceeds from Issuance of Common Stock
|
-
|
34,841
|
||||||
Repayments on Borrowing Facility
|
(21,245
|
)
|
(50,985
|
)
|
||||
Proceeds from Vessel Financing |
- | 88,000 | ||||||
Repayments on Vessel Financing
|
(6,998
|
)
|
(4,459
|
)
|
||||
Dividends Distributed
|
(31,319
|
)
|
(1,945
|
)
|
||||
Net Cash Provided by / (Used in) Financing Activities
|
(59,562
|
)
|
65,452
|
|||||
Net Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
39,211
|
5,998
|
||||||
Cash, Cash Equivalents and Restricted Cash at the Beginning of Period
|
63,302
|
44,648
|
||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (99 | ) | 38 | |||||
Cash, Cash Equivalents and Restricted Cash at the End of Period
|
102,414
|
50,684
|
||||||
Supplemental Disclosure of Cash Flow information
|
||||||||
Cash and Cash Equivalents
|
96,480
|
35,573
|
||||||
Restricted Cash
|
5,934
|
15,111
|
||||||
Total Cash, Cash equivalents and Restricted Cash Shown in the Statement of Cash Flows
|
102,414
|
50,684
|
||||||
Cash Paid for Interest, Net of Amounts Capitalized
|
(14,818
|
)
|
(9,565
|
)
|
Condensed Consolidated Statements of Shareholders’
Equity for the Six Months ended June 30, 2023 and 2022 (Unaudited)
|
|
|
Number of Shares
|
Common Stock
|
Additional Paid-in Capital
|
Contributed Surplus
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
(Accumulated deficit)
|
Total Shareholders’ Equity
|
|||||||||||||||||||||
Balance at January 1, 2022
|
183,694,196
|
1,836
|
139,480
|
529,816
|
(1,581
|
)
|
(171,328
|
)
|
498,223
|
|||||||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
(30,940
|
)
|
(30,940
|
)
|
|||||||||||||||||||
Common Shares Issued, net | 18,978,666 | 190 | 34,651 | - | - | - | 34,841 | |||||||||||||||||||||
Share based compensation
|
-
|
-
|
56
|
-
|
-
|
-
|
56
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
(303
|
)
|
-
|
(303
|
)
|
|||||||||||||||||||
Dividends Paid and Declared
|
-
|
-
|
-
|
(5,978
|
)
|
-
|
-
|
(5,978
|
)
|
|||||||||||||||||||
Balance at June 30, 2022
|
202,672,862
|
2,026
|
174,187
|
523,838
|
(1,884 | ) |
(202,268
|
)
|
495,899
|
|
Number of Shares
|
Common Stock
|
Additional Paid-in Capital
|
Contributed Surplus
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
(Accumulated deficit)
|
Total Shareholders’ Equity
|
|||||||||||||||||||||
Balance at January 1, 2023
|
208,796,444
|
2,087
|
188,801
|
507,134
|
(1,813
|
)
|
(156,227
|
)
|
539,982
|
|||||||||||||||||||
Net Income (Loss)
|
-
|
-
|
-
|
-
|
-
|
73,721
|
73,721
|
|||||||||||||||||||||
Share based compensation
|
-
|
-
|
1,147
|
-
|
-
|
-
|
1,147
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
(216
|
)
|
-
|
(216
|
)
|
|||||||||||||||||||
Dividends Paid and Declared
|
-
|
-
|
-
|
(62,639
|
)
|
-
|
-
|
(62,639
|
)
|
|||||||||||||||||||
Balance at June 30, 2023
|
208,796,444
|
2,087
|
189,948
|
444,495
|
(2,029 | ) |
(82,506
|
)
|
551,995
|
All amounts in USD ‘000
|
2023
|
2022
|
||||||
Spot charter revenues
|
196,803
|
100,170
|
||||||
Time charter revenues
|
23,731
|
24,009
|
||||||
Total Voyage Revenues
|
220,534
|
124,179
|
All amounts in USD ‘000
|
Amount
|
|||
2023
|
14,469
|
|||
2024
|
17,202
|
|||
2025 |
17,155 | |||
2026 |
17,155 | |||
2027 | 17,155 | |||
Thereafter |
7,406 | |||
Future minimum revenues
|
90,542
|
Debt repayments in $’000s
|
Total
|
2023*
|
2024
|
2025
|
2026
|
2027
|
Thereafter
|
|||||||||||||||||||
2019 Senior Secured Credit Facility
|
107,944
|
22,554
|
12,079
|
73,311
|
-
|
-
|
-
|
|||||||||||||||||||
Financing of 2018-built Vessels
|
91,680
|
4,440
|
9,138
|
9,534
|
9,974
|
10,434
|
48,160
|
|||||||||||||||||||
Financing of 2022 Newbuildings |
82,124 | 2,772 | 5,515 | 5,500 | 5,500 | 5,500 | 57,337 | |||||||||||||||||||
Total
|
281,748
|
29,766
|
26,732
|
88,345
|
15,474
|
15,934
|
105,497
|
All figures in USD ‘000
|
June 30,
2023
|
December 31,
2022
|
||||||
Vessels and Drydocking Cost
|
1,147,732
|
1,147,320
|
||||||
Less Accumulated Depreciation and Impairment Loss on Vessels
|
(437,614
|
)
|
(412,186
|
)
|
||||
Net Book Value Vessels |
710,118 | 735,134 |
All figures in USD ‘000
|
June 30,
2023
|
December 31,
2022
|
||||||
Accrued Expenses
|
3,400
|
6,472
|
||||||
Other Liabilities | 1,505 | 1,821 | ||||||
Deferred Revenues
|
3,270
|
6,146
|
||||||
Total as of
|
8,175
|
14,439
|
Six months ended June 30,
|
||||||||
All figures in USD ‘000 except share and per share amounts
|
2023
|
2022
|
||||||
Numerator
|
||||||||
Net Income (Loss)
|
73,721
|
(30,940
|
)
|
|||||
Denominator
|
||||||||
Basic – Weighted Average Common Shares Outstanding
|
208,796,444
|
196,118,802
|
||||||
Dilutive – Weighted Average Common Shares Outstanding
|
208,796,444
|
196,118,802
|
||||||
Net Income (Loss) per Common Share
|
||||||||
Basic
|
0.35
|
(0.16
|
)
|
|||||
Diluted
|
0.35
|
(0.16
|
)
|
|
|
Authorized Shares
|
|
|
Issued and
Outstanding Shares
|
|
|
Common Stock
|
|
|||
Balance as of December 31, 2022
|
|
|
360,000,000
|
|
|
|
208,796,444
|
|
|
|
2,087
|
|
$60 million 2022 ATM offering | - | - | - | |||||||||
Balance as of June 30, 2023
|
|
|
360,000,000
|
|
|
|
208,796,444
|
|
|
|
2,087
|
|