Nordic American Tankers Limited Q3 FY2022 earnings call

• Emphasizes focus on ton miles (transportation work) with business in regions like Japan, China, Korea, India, Middle East, and recent oil lifting from Guyana.
• Notes uncertainty around December 5 Russian oil rules is good for business, with tonnage imbalance.
• Dividend is a priority; paid $0.05 dividend, expects $0.10 for Q4, with objective to reach $1 per year again.
• Paid down $205 million of debt from a $336 million facility, now $130 million, plans to be debt-free soon.
• Focus on fleet management, selling older vessels and considering expansion to 30 Suezmaxes, with capital allocation key.
• Reduces emissions via active speed management: slow speed when not loaded (20 tonnes bunker oil), increased speed with cargo (50 tonnes bunker oil).
• Strong relationships with major oil companies and supports Ukraine.

No specific product segments with financial performance and revenue contribution % discussed in detail. Focus is on overall tanker market operations and business across regions.

• Dividend expected to be $0.10 per quarter, with objective to reach $1 per year.
• Plan to be debt-free in a year or slightly more, with $25 million debt reduction per quarter while paying dividends.
• Considering refinancing options but not in a hurry, with flexibility in capital allocation.

• Uncertainty around end of Ukraine war and potential impact on tanker market, though no dramatic consequences foreseen.
• Potential issues with shadow fleet if war ends, including poor maintenance, insurance, and manning, which could take ships off the market.

Q: About dividend growth and payout ratio.

A: Dividend increased to $0.05, next expected $0.10 in Q4, with objective to reach $1 per year.

Q: About Beal Bank facility and debt reduction/refinancing.

A: $205 million paid down from $336 million, now $130 million, with multiple refinancing proposals, prioritizing dividend.

Q: About fleet expansion and acquisition opportunities.

A: Focus on capital allocation, transparency attracts interest, but detailed capital allocation complex.

Q: About chartering strategy, spot vs time charter.

A: Prioritize spot market, but balance with avoiding excessive debt, selling older vessels for renewal.

Q: About war end impact on tanker market.

A: Uncertain, but no dramatic consequences foreseen, strong business in Middle East and support for Ukraine.

Q: About time charters and ship details.

A: 4 ships on time charter, including 2 to Oman for 6 years, 1 to Equinor, 1 to Unipec.

Q: About debt interest rates.

A: All debt is at floating interest rates.