NAT set for further expansion

NORDIC AMERICAN TANKER SET FOR FURTHER EXPANSION

BERMUDA-registered tanker owner Nordic American Tanker Shipping is in a “good position for further expansion and progress” according to company chairman and ceo Herbjørn Hansson in an upbeat letter to investors.

Mr Hansson writes: “The spot tanker market during the first months of 2007 has been strong. The average Imarex Tanker Index for suezmax vessels for the first three months of 2007 was US$41,877 per day compared with US$39,727 for Q4 06. The average Imarex rate during April up to April 16th was US$45,300 per day. The volatility of the spot market can be expected to continue.” He notes: “Q1 07 was the first quarter in which we have had the full benefit of our 12 vessel fleet. 11 of our 12 vessels are employed in the spot market. Our analysis shows that spot employment yields a better return over time than fixed rate time charters.”

He adds: “By growing the fleet, we have significantly increased the company's dividend and earnings capacity per share. In the process, we have reduced the average age of our fleet. We expect to grow the company's fleet further while the timing of the growth cannot be predicted with precision. Our goal is to ensure that the company's earnings and dividend per share after an acquisition and the financing thereof are higher than the earnings and dividend per share before the acquisition, at the same prevailing spot rate level. We shall continue to operate a modern and homogeneous fleet, focusing on environmentally friendly suezmax tankers with double hull (one million barrel vessels).

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