UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF
THE SECURITIES EXCHANGE ACT OF 1934
For the
month of February 2009
Commission
File Number: 001-13944
|
NORDIC
AMERICAN TANKER SHIPPING LIMITED
|
|
(Translation
of registrant’s name into English)
|
|
LOM
Building, 27 Reid Street, Hamilton, HM 11, Bermuda
|
|
(Address
of principal executive office)
|
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form 20-F
[X] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): [ ].
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely
to provide an attached annual report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): [ ].
Note: Regulation S-T Rule
101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the
registrant is incorporated, domiciled or legally organized (the registrant's
"home country"), or under the rules of the home country exchange on which the
registrant's securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the
registrant's security holders, and, if discussing a material event, has already
been the subject of a Form 6-K submission or other Commission filing on
EDGAR.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 1 is a press
release of Nordic American Tanker Shipping Limited, dated February
13, 2009, announcing its financial results for the fourth quarter of
2008.
Exhibit
1
Nordic
American Tanker Shipping Ltd. (NYSE:NAT) – Announces Dividend and Earnings
in respect of the 4th Quarter of 2008
Hamilton,
Bermuda, February 13, 2009
Nordic
American Tanker Shipping Ltd. (“NAT” or “the Company”) today announced its
results for the 4th quarter of 2008. Based on its results for the quarter, the
Company will pay a dividend of $0.87 per share on or about March 9, 2009 to
shareholders of record as of February 25, 2009. Following this
dividend payment, the Company will have paid a dividend for 46 consecutive
quarters since the autumn of 1997 when the first three vessels in the Company’s
fleet were delivered and commenced operations.
In 4Q08
the spot Suezmax tanker market was well above the corresponding quarter in
2007.
The
present instability in the international financial markets is continuing to be
challenging for the shipping industry. NAT has a very strong position
in this environment. The Company has no debt, and at the time of this writing,
an undrawn revolving credit facility of $500 million with a term up to September
2013. The Company received approximately $107 million in cash on January 15,
2009 from a follow-on offering of common shares of the Company. This provides
NAT with enhanced financial flexibility going forward.
Our
primary objective is to maximize total return to our shareholders including
maximizing the quarterly cash dividend based upon our simple, transparent and
predictable operating model.
The
Company does not engage in any type of derivatives.
The Board
of Directors is committed to continuing the Company’s full pay out dividend
policy.
The
Company has further acquisitions under evaluation and expects to continue to
strengthen its position compared with that of its competitors.
Highlights:
|
·
|
The
Board of Directors has declared a dividend of $0.87 per share in
respect of 4Q08 – which is in line with the guidance the Company announced
in its message of January 5, 2009. For the last four
quarters, including the dividend to be paid for 4Q08, a total of $5.26 has
been declared in dividend, which represents 16.0% of the average
daily share price over the same period.
|
|
·
|
Net
income for 4Q08 was $0.50 per share based on the number of shares
outstanding during the quarter, 34,373,271, against $0.06 per share for
4Q07.
|
|
·
|
In
4Q08 total offhire was 40 days as a result of unplanned technical work on
two vessels. No vessels were in drydock during 4Q08. There are
no further planned drydockings for any of the Company’s vessels until 2010
when one vessel is scheduled for
drydocking.
|
|
·
|
On
January 5, 2009, the Company announced that it had agreed to acquire a
double-hull Suezmax tanker which is expected to be delivered to the
Company on or about February 18,
2009.
|
|
·
|
On
January 15, 2009 the Company completed an underwritten public offering of
3,450,000 common shares which strengthened its equity by more than
$107 million in order to increase the capacity of the Company to make
further accretive acquisitions.
|
|
·
|
Notwithstanding
the volatility in the financial and commodities markets, the sound Suezmax
tanker spot market has to date continued into 1Q09 up to the time of this
writing. The Company does not predict future spot rates. So far in 2009
the spot tanker market has been positively impacted by the use of tankers
for storage purposes.
|
Financial
Information:
The Board
has declared a dividend of $0.87 per share in respect of 4Q08. This compares
with a dividend of $0.50 per share which was declared in respect of 4Q07. The
amount of dividend per share is above all a direct reflection of the level of
the spot tanker market during the relevant quarter and the number of shares
outstanding. The weighted average number of shares outstanding for the 4th quarter
was 34,373,271 - the same number of shares as at the end of September 30,
2008.
Following
the payment of the dividend in respect of 4Q08, the Company has for the last
four quarters paid dividends in the aggregate of $5.26 per share,
representing a yield of 16.0% per annum based on the average daily
share price during 2008.
Net
income for 4Q08 was $17.2 m, or $0.50 per share (EPS) compared to net income of
$1.7m, or $0.06 per share for the 4Q07. The Company’s earnings per share for
4Q08 take into account the effect of loss of income of $0.05 per share related
to the unplanned off hire mentioned above.
The
Company’s operating cash flow1 was $30.2m for 4Q08,
compared to $17.2m for 4Q07.
We
consider our general and administrative costs per day per ship to be at a low
level. We also continue to have a strong focus keeping the operating costs
of our vessels low, while always emphasizing on safe vessel
operations
As of the
end of 4Q08, NAT does not have any net debt. At the time of this writing, the
Company has not drawn on its $500 million revolving credit facility.
The credit facility, maturing in September 2013, is not subject to reduction by
the lenders and there is no repayment obligation during the term of the
facility. The Company pays interest only on drawn amounts and a commitment fee
for undrawn amounts.
The
double hull Suezmax tanker which we agreed to acquire recently, is expected to
be delivered to the Company on or about February 18, 2009. The acquisition is
expected to be financed from the Company’s financial resources. This
vessel and the two new buildings can together be expected to increase the
earnings and dividend capacity of the company by approximately 25%.
In order
to increase further the capacity of the Company to make accretive acquisitions,
the Company announced January 15, 2009 the closing of an offering of 3,450,000
common shares, including the exercise by the underwriters of an over-allotment
option of 450,000 shares. The follow-on offering resulted in aggregate net
proceeds to the Company, before expenses relating to the offering, of
approximately $107 million. Following the offering, the Company has 37,893,679
common shares outstanding.
The
offering together with the undrawn credit facility gives the Company a high
degree of flexibility for future expansion.
1 Operating
cash flow is a non-GAAP financial term often used by investors to measure
financial performance of shipping companies. Operating cash
flow represents income from vessel operations before depreciation and non-cash
administrative charges. Please see page 6 for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable GAAP financial
measure.
We
estimate that our average cash breakeven for our trading fleet of 12
vessels is below $10,000 per day per vessel. When the freight market
is above this level, the Company can be expected to pay a dividend. The
breakeven rate is the amount of average daily revenues for our vessels in the
spot market which would cover our vessel operating expenses, voyage expenses, if
any, cash general and administrative expenses, interest expense and other
financial charges.
For
further details on our financial position for the periods of 4Q08, 3Q08, 4Q07
and the years 2007 and 2008, please see later in this release.
The
Fleet:
Eleven of
the Company’s 12 trading vessels are employed in the spot market, while one
vessel remains employed on a long-term fixed rate charter.
By way of comparison,
in the
autumn of
2004 the Company had three vessels; at the end of
2005 the Company had eight vessels; and at the end of 2006 the Company had 12
vessels. During 4Q08, we had 12 vessels in operation. With the two
newbuildings announced in November 2007 and the acquisition of the existing
Suezmax tanker expected to be delivered to the Company on or about February 18,
2009, the Company is expected to have a fleet of 15 vessels operating from April
2010 if no further acquisitions are made in the meantime.
| Vessel |
Dwt
|
Employment
|
|
Gulf
Scandic
|
151,475
|
Long
term fixed charter
|
|
Nordic
Hawk
|
151,475
|
Spot
|
|
Nordic
Hunter
|
151,400
|
Spot
|
|
Nordic
Voyager
|
149,591
|
Spot
|
|
Nordic
Fighter
|
153,328
|
Spot
|
|
Nordic
Freedom
|
163,455
|
Spot
|
|
Nordic
Discovery
|
153,328
|
Spot
|
|
Nordic
Saturn
|
157,332
|
Spot
|
|
Nordic
Jupiter
|
157,411
|
Spot
|
|
Nordic
Cosmos
|
159,998
|
Spot
|
|
Nordic
Moon
|
159,999
|
Spot
|
|
Nordic
Apollo
|
159,999
|
Spot
|
|
Nordic
Sprite
|
147,188
|
Expected
spot following delivery on or about February 18, 2009
|
|
Nordic
Galaxy
|
163,000
|
Delivery
scheduled in 4Q09
|
|
Nordic
Vega
|
163,000
|
Delivery
scheduled by end April 2010
|
|
Total
|
2,341,979
|
No
scheduled drydockings were undertaken during 4Q08. There are no further planned
drydockings for our vessels until 2010 when one drydocking is expected to take
place. During 4Q08 we had 40 days unscheduled off hire resulting from technical
repairs to two vessels. As of the time of this writing, the Company
has had no off hire days for our vessels in 1Q09.
Financial Instability and
the Tanker Market:
In our
quarterly reports to shareholders we have often stressed the significance of the
development of the world economy for the tanker industry. The present
downturn can be expected to influence our industry. Production and
consumption locations are of particular importance to our industry.
Transportation volume times distance – or ton miles – is a key
measurement. Suezmax tanker rates are maintaining satisfactory levels
to date in 2009 as indicated elsewhere in this report.
It is
apparent that some shipping companies are now facing challenges when it comes to
the financing of their large newbuilding programs, as shipping banks are more
restrictive than before in granting credit. Such an environment offers the
Company the opportunity to improve its relative competitive
position.
While the
recession evolving internationally can be expected to reduce the demand for
transportation capacity, the demand side for tankers is impacted positively by
the use of tankers as storage. Due to the so-called “contango” situation; i.e.,
the future oil price is above the current spot oil price, charterers may find it
commercially worthwhile to purchase oil spot and store the oil in tankers while
simultaneously selling the same oil for forward delivery. At the time of this
writing market reports indicate that approximately 35 very large crude carriers
(VLCCs) are being used for storage purposes, thereby reducing the supply of
tanker tonnage for the time being. Whether this situation will last for a longer
period or not can be expected to depend upon the development of the spot oil
price compared with the future oil price.
On the
supply side, it is expected that the current financial upheaval may delay
deliveries of newbuildings and may also lead to the cancellation of newbuilding
orders. We may also see that shipping companies with high debt or
other financial commitments may experience problems which could lead to
foreclosures by lenders.
The
average daily rate for our spot vessels was $40,157 per day net to us during
4Q08 compared with $27,322 for 4Q07.
| Due
to the extraordinary decrease in bunker prices during 4Q08, actual results
achieved by our Company and other tanker owning companies with vessels in
the spot market may differ substantially from results provided by indices
such as IMAREX for the quarter. The actual results achieved by companies
may also vary depending on the time of the bunker purchases.
The
graph shows the average yearly spot rates for the past nine years as
reported by R.S. Platou Economic Research a.s. The rates as
reported by shipbrokers may also vary from the actual rates we achieve in
the market.
|
 |
|
Strategy going
forward
We
believe that the unique and transparent operating model of the Company
is working to the benefit of shareholders.
The
financial turmoil may represent attractive opportunities for our Company. We
have further acquisitions under planning, but we are not rushing to
expand.
Our
policy is to grow when it is profitable and accretive to do so; that is, after
an acquisition of vessels or other forms of expansion, the Company should be
able pay a higher dividend per share and produce higher earnings per share than
before such an event before taking into account any change in the spot rates. We
believe that the recent acquisition referred to above is an example of such an
accretive acquisition.
We
believe that our full dividend payout policy, with high spot market exposure
combined with a strong balance sheet should continue to enable us to achieve a
competitive cash yield compared with that of other shipping companies.
In the
midst of the international financial instability, it is our policy to keep our
simple, transparent and predictable operating model. Going forward, we believe
that our Company is well positioned.
* * *
*
NORDIC AMERICAN TANKER
SHIPPING LIMITED
|
Amounts
in USD ‘000
|
||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||
|
CONDENSED
STATEMENTS OF OPERATION
|
Dec.
31, 2008
(unaudited)
|
Sep
30, 2008
(unaudited)
|
Dec.
31, 2007
(unaudited)
|
Dec.
31, 2008
(unaudited)
|
Dec.
31, 2007
|
|
|
NET
VOYAGE REVENUE
|
40,510
|
67,316
|
26,859
|
217,950
|
139,864
|
|
|
OPERATING
EXPENSES
|
(8,633)
|
(9,175)
|
(7,863)
|
(35,593)
|
*(32,124)
|
|
|
Vessel
operating expenses
|
(12,553)
|
(12,359)
|
(11,234)
|
(48,284)
|
*(42,363)
|
|
|
Depreciation
|
(1,957)*
|
(2,985)*
|
(4,647)*
|
(12,785)
|
(12,132)
|
|
|
General
and administrative costs
|
(23,143)
|
(24
519)
|
(23
744)
|
(96
662)
|
(86,619)
|
|
|
Income
from vessel operation
|
17,367
|
42,797
|
3,115
|
121,288
|
53,245
|
|
|
Interest
income
|
132
|
321
|
200
|
931
|
904
|
|
|
Interest
expense
|
(301)
|
(434)
|
(1,640)
|
(3,374)
|
(9,943)
|
|
|
Net
financial items
|
(168)
|
(113)
|
(1,440)
|
(2,443)
|
(9,039)
|
|
|
NET
INCOME
|
17,198
|
42,684
|
1,675
|
118,844
|
44,206
|
|
|
Earnings
per average number of shares
|
0.50
|
1.24
|
0.06
|
3.63
|
1.56
|
|
|
Weighted
average number of shares
|
34,373,271
|
34,373,271
|
29,975,312
|
32,739,057
|
28,252,472
|
|
|
Common
shares outstanding
|
34,373,271
|
34,373,271
|
29,975,312
|
34,373,271
|
29,975,312
|
|
|
*)
|
The
G&A for the three months ended Dec. 31, 2008, Sep. 30, 2008 and Dec.
31, 2007 include non-cash charges of $0.3m, $1.2m and $2.9m respectively
which are charges related to share based compensation, the 2004 Stock
Option Plan and pension cost.
|
|
**)
|
The
G&A for the twelve months ended Dec. 31, 2008 and 2007 include
non-cash charges of $6.2m and $6.2m respectively which are charges related
to share based compensation, the 2004 Stock Option Plan and pension
cost.
|
|
CONDENSED
BALANCE SHEETS
|
Dec. 31, 2008
(unaudited)
|
Dec. 31, 2007
|
|
Cash
deposits
|
31,378
|
13,342
|
|
Accounts
receivable *
|
40,335
|
14,489
|
|
Other
current assets
|
22,406
|
16,972
|
|
Vessels
|
707,853
|
740,631
|
|
Other
long term assets
|
11,906
|
19,194
|
|
Total
Assets
|
813,878
|
804,628
|
|
Accounts
payable
|
1,947
|
7,290
|
|
Accrued
liabilities
|
4,267
|
17,068
|
|
Accrued
long-term liability
|
4,078
|
2,665
|
|
Long-term
debt
|
15,000
|
105,500
|
|
Shareholders’
equity
|
788,586
|
672,105
|
|
Total
liablilities and shareholders’ equity
|
813,878
|
804,628
|
|
*)
|
The
Accounts receivable (AR) constitutes ordinary accounts receivables, net
earnings and voyages in progress at quarter end. The balance of
the AR will vary with the level of the spot tanker
market.
|
|
CONDENSED
STATEMENTS OF
CASH
FLOW
|
Twelve
Months Ended
|
|
|
Dec. 31, 2008
(unaudited)
|
Dec. 31, 2007
|
|
|
OPERATING
ACTIVITIES
|
||
|
Net
cash from Operating Activitites
|
127,900
|
83,649
|
|
FINANCING
ACTIVITIES
|
||
|
Net
proceeds from sale of Common Stock
|
158,891
|
119,751
|
|
Proceeds
from use of Credit Facility
|
25,000
|
55,000
|
|
Repayment
of debt
|
(115,500)
|
(123,000)
|
|
Loan
facility costs
|
(2,316)
|
(14)
|
|
Dividends
paid
|
(165,886)
|
(107,349)
|
|
Net
Cash provided by (used for) Financing Activities
|
(99,812)
|
(55,612)
|
|
INVESTING
ACTIVITIES
|
||
|
Investment
in Vessels
|
(10,053)
|
(8,424)
|
|
Deposit
on Contract
|
0
|
(18,000)
|
|
Net
cash used by investing activitites
|
(10,053)
|
(26,424)
|
|
Net
Increase in Cash and Cash Equivalents
|
18,036
|
1,613
|
|
Beginning
Cash and Cash Equivalents
|
13,342
|
11,729
|
|
Ending
Cash and Cash Equivalents
|
31,378
|
13,342
|
NORDIC
AMERICAN TANKER SHIPPING LIMITED
Reconciliation of
non-GAAP financial measures
(Amounts
in USD ‘000)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||
|
Dec.
31,
2008
|
Sep.
30,
2008
|
Dec.
31,
2007
|
Dec.
31,
2008
|
Dec.
31,
2007
|
||
|
Voyage
revenue
|
40,872
|
69,202
|
40,174
|
228,000
|
186,986
|
|
|
Voyage
expenses
|
(362)
|
(1,886)
|
(13,315)
|
(10,051)
|
(47,122)
|
|
|
Net
voyage revenue (1)
|
40,510
|
67,316
|
26,859
|
217,950
|
139,864
|
|
|
Three
Months Ended
|
|||
|
Dec.
31,
2008
|
Sep.
30,
2008
|
Dec.
31,
2007
|
|
|
Income
from vessel operations
|
17,367
|
42,797
|
3,115
|
|
Depreciation
|
12
,53
|
12,359
|
11,234
|
|
Share
Based Compensation/ Stock Option Plan/Pension Cost
|
300
|
1,217
|
2,890
|
|
Operating
Cash Flow (2)
|
30,220
|
56,373
|
17,239
|
| (1) |
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.
|
|
(2)
|
Operating
cash flow represents income from vessel operations before depreciation and
non-cash administrative charges. Operating cash flow is included because
certain investors use this data to measure a shipping company’s financial
performance. Operating cash flow 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.
|
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters
discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts.
The
Company desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,”
“may,” “should,” “expect,” “pending” and similar expressions identify
forward-looking statements.
The
forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management’s examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible to
predict and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. We undertake
no obligation to update any forward-looking statement, whether as a result of
new information, future events or otherwise.
Important
factors that, in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand in the tanker market, as a
result of changes in OPEC’s petroleum production levels and world wide oil
consumption and storage, changes in our operating expenses, including bunker
prices, drydocking and insurance costs, the market for our vessels, availability
of financing and refinancing, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from pending or
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hire, failure on the part of a seller to
complete a sale to us and other important factors described from time to time in
the reports filed by the Company with the Securities and Exchange Commission,
including the prospectus and related prospectus supplement, our Annual Report on
Form 20-F, and our Reports on Form 6-K.
Contacts:
Scandic
American Shipping Ltd
Manager
for:
Nordic
American Tanker Shipping Limited
P.O Box
56, 3201 Sandefjord, Norway
Tel: + 47
33 42 73 00 E-mail: nat@scandicamerican.com
Rolf
Amundsen, Investor Relations
Nordic
American Tanker Shipping Limited
Tel: +1
800 601 9079 or + 47 908 26 906
Gary J.
Wolfe
Seward
& Kissel LLP, New York, USA
Tel: +1
212 574 1223
Turid M.
Sørensen, CFO
Nordic
American Tanker Shipping Limited
Tel: +
47 33 42 73 00 or + 47 905 72 927
Herbjørn
Hansson, Chairman and Chief Executive Officer
Nordic
American Tanker Shipping Limited
Tel:
+1 866 805 9504 or + 47 901 46 291
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
NORDIC
AMERICAN TANKER SHIPPING LIMITED
(registrant)
| Dated: February 13, 2009 |
By:
|
/s/ Herbjørn Hansson
|
|
Herbjørn
Hansson
Chairman,
Chief Executive Officer and
President
|
SK 01318 0002
965712