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Nordic American Tankers Limited (NAT)
NYSE - Nasdaq Real Time Price. Currency in USD
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I have some money to invest. I am looking for a company that made its high in 2005, whose share price has declined steadily ever since and miraculously still has the same CEO. Another plus would be a company that continually issues new shares to fund the dividend but continually diluted shareholder value. Does anyone here know of such a company?
The company say that they have made a timecharter equivalent of usd 25000 per day for their vessels in the 3rd quarter. That is not correct. Or rather it is window dressing, depending on how you look at it. The company had a turnover of usd 37287000. They have a trading fleet of 23 vessels. The number of days in Q3 was 92 days. 23 vessels multiplied by 92 days gives vessel earning days of 2116 days. Divide usd 37287000 by 2116 days and you get a timecharter equivalent of usd 17621 per vessel per day. That is a figure that is close to cash breakeven rate of usd 18000, and not usd 25000 as the company says.
If you calculate it a bit differently, calculating how many days the vessels on average would have been trading , you can do it like this: usd 37287700 divided by 23 vessels,again divided by usd 25000 per day would give you on average 65 trading days for the fleet, compared to 92 available days. Calculation: 37287000/(usd25000*23 vessels)= 65 days.
Above I said that the earning capacity of the fleet was 2116 days for the fleet for the period. However,the actual earning days of the fleet was 65 days multiplied by 23 vessels = 1491 days , which gives a total offhire / dry docking period for the fleet of 625 days (2116 days-1491 days). This fact they do not mention in the report,except for saying that they did some dry dockings.
The result for the period was minus 10021000. If we add the depreciation of usd 17440000 we get the cash flow which was usd 7419000. Usually the dividend is calculated after the result is clear. You decide on how much of the result you can pay as dividend. NAT doesnt do that because the chairman is hellbent on paying dividend, no matter what. So out of this period's cash flow (not result) NAT will pay out about usd 6 mill. in dividends (150830000 shares by dividend of 0.04). So almost all their cashflow go to dividends.
My expectations for Q3 was a timecharter equivalent of usd 15000 per day per vessel( actual usd 17621) and a result per share of minus 0.11 (actual -0.07) , so I feel I was not too far off.
The dividends for this year amounts to a total of usd 0.38 per share. If you bought the share 1st January at usd 4.92 you are down usd 1.29 per share based on current annual dividends of usd 0.38.
For Q4 I estimate usd 10000 per day per vessel (just above running costs) giving a result of minus 0.18 per share .
Same scenario , Middle east can't agree , Saudi's open the spigot , oil plunges , then they all agree , and everyone scrambles to get a tanker load of cheap oil before it goes up , tanker market surges........even the camels in the desert know this......
Stockpiles at Cushing, Oklahoma, the delivery point for West Texas Intermediate futures, stood at 61.6 million barrels as of Nov. 13, or about 81% of capacity, according to the most recent U.S. government data. That’s 3.83 million barrels shy of the levels seen in May.
the dividend will not be sustainable I mentioned this weeks ago
heading into bankruptcy
Dears don’t forget that different NAT vessels was under dry docking which normally lasts for 30 days during which the vessel takes rest and needed repair takes place
Tanker stock or should I say Tanking stock to be more accurate.😂😂😂😂😂
Noticed on Yahoo that the few analysts covering NAT have adjusted their earnings estimates to a loss of 13 cents for Q4 and breakeven for Q1.
A slight bit of optimism from Fearnleys.. We may be looking beyond the valley
On the surface it looks like another uneventful week in the Suezmax market, but this belies some of the more subtle cues that point to modest optimism. Anticipation of a Covid-19 vaccine has helped kickstart a raft of TC enquiries as charterers hedge 2021 and a possible return to higher oil demand. These TC moves are straight out of the Warren Buffet playbook of being "greedy when others are fearful" and will likely payoff. The spot market has finally shown signs of life as lists tighten for early third decade stems in the Mediterranean and West Africa. A prompt WAFR/Portugal cargo clearly missed the memo and paid WS39, pricing TD20 in the high WS30'S. TD6 will trade mid/high WS40's whilst in the East we may see rates benefit from Western sentiment but ultimately capped by VLCCs.
NAT is continuing to sell shares through the ATM, at or near current share price. Since Oct 16 a total of $2.7 million raised through share sales. And a new $60 million ATM is in place to replace the $40 million facility which has been exhausted over the past 15 months.
Overview Of Value Stocks In The Industrials Sector
What is a Value Stock?
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
Capital Product Partners
(NASDAQ:CPLP) - P/E: 5.04
(NASDAQ:FSTR) - P/E: 3.27
Nordic American Tankers
(NYSE:NAT) - P/E: 5.45
(NASDAQ:RCII) - P/E: 9.91
(NYSE:GFL) - P/E: 1.59
Capital Product Partners's earnings per share for Q3 sits at 0.41, whereas in Q2, they were at 0.46. Its most recent dividend yield is at 5.26%, which has decreased by 0.62% from 5.88% in the previous quarter.
This quarter, L.B. Foster experienced a decrease in earnings per share, which was 0.41 in Q2 and is now 0.09. The company's most recent dividend yield sits at 1.57%, which has increased by 0.18% from 1.39% last quarter.
This quarter, Nordic American Tankers experienced a decrease in earnings per share, which was 0.33 in Q2 and is now -0.07. The company's most recent dividend yield sits at 5.03%, which has decreased by 10.87% from 15.9% last quarter.
Rent-A-Center has reported Q3 earnings per share at 1.04, which has increased by 30.0% compared to Q2, which was 0.8. Most recently, the company reported a dividend yield of 3.81%, which has decreased by 0.65% from last quarter's yield of 4.46%.
Most recently, GFL Environmental reported earnings per share at 0.13, whereas in Q2 earnings per share sat at 0.03. GFL Environmental does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.
Anyone considering investing in NAT should read the report. They averaged $25,000 TCE for the quarter and still lost money. Q4 could have an average half of that with current market rates. The operating expenses are in a predictable range so you generally know how much they need to get per ship per day to break even. It doesn't look like that is happening for a long time pending another bubble like earlier this year.
$dht $nat $insw $eurn
Huge cut in dividende For Q3 only 4 cent dividende. Earning minus 7 cent.
Dear Shareholders and Investors,
The average Time Charter Equivalent (TCE) for our trading fleet during the third quarter was $25,000 per day per ship. In perspective, this is the best third quarter TCE result for many years.
As 2020 draws to a close, we see far less uncertainty in the market place.
Asia is recovering strongly, the US election season is over and a vaccine for Covid-19 may be widely available by early 2021. The global pandemic short term impacted the strong fundamentals we saw for the tanker market going into 2020. Despite a temporary slowdown, we see that 2020 as a whole will be a very good year for NAT. We believe that these positive fundamentals will continue.
Cash dividends are a priority for NAT, and reflect our earnings. In 2020 we have paid $60 million or 41 cents per share in dividends. With this report we announce our 93rd consecutive quarterly dividend. The dividend for 3Q2020 is 4 cents ($0.04) per share, payable on or about December 15, 2020, to shareholders of record December 2, 2020. The accumulated dividend payments for the last four quarters represent an annualized yield of 14% on today’s share price.
During the third quarter we took several of our vessels through drydockings and as such our net voyage revenues and net profit were affected. This was an optimal timing. Our Net Income for 3Q 2020 thus came in at – $10.0 million, which gave an Earnings Per Share (EPS) of -$0.07. Our Year-to-date Net Income was positive with $78.7 million which is equivalent to an EPS of $0.53. This was an improvement of about $100 million compared to the same period in 2019, which produced a Net Income of -$23.1 million.
Our EBITDA (non-GAAP measure) for 3Q2020 was positive by $15.6 million. This was lower than second quarter, but the EBITDA was an improvement compared to the same quarter last year, which generated an EBITDA of $11.5 million.
Our total long term liabilities as per Sept 30, 2020 stood at $313.3 million, a reduction of more than $63 million since year-end 2019. Our Net Debt is $255.4 million or about $11 million per ship.
On Sept 23, 2020 we announced two newbuilding contracts placed with Samsung Heavy Industries. The two suezmaxes will be delivered first half 2022. Financing has been secured. This is a part of our strategy to renew and grow our fleet. The quality of the NAT fleet is first rate, reflecting the vetting record of our ships.
Detailed financial information for 3Q 2020 and for other periods is included later in this report.
Looks like I am going to be married to this stock for a while. A very long, long while.
Anybody else have shares left over from Herb's brilliant idea to give us all a part of Nordic American Offshore instead of a cash dividend one quarter long ago? After a drastic restructuring and a new name (Hermitage Offshore Services), bankruptcy was declared (nothing to do with HH of course!) What was a $160.00 stake (as I recall) is now worth 21c. A precautionary tale!
I think Svein has just destroyed any credibility he may have had .. He just posted that he sold 16,000 shares at $3.16 that he bought Friday at $2.91. Doesn’t any else find it odd that last week he posted several comments stating that there will be no dividend, and that we should all sell our stock as it will decline precipitously.. Yet, he claims to have bought 16,000 new shares on Friday.. Quite a contradiction. Could anyone please explain any different take on this ?
Certainly don’t mean to be adversarial, but we all are trying to help each other, and find the above to be not be believable...
where is 7.20 so i can dump this garabge and get my money back
Ever notice how the last three days this stock loses a dime in the morning, then recovers that and more by the end of the day?
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