Nordic American Tankers Limited

No quarterly revenue, EPS, or gross margin figures were stated on the call. Management’s main financial message was that the company expects to repay all debt to Beal Bank of Dallas in about a year or so and become debt free in one to two years, which they said could support a stronger dividend. Bjørn Giæver said the dividend could “easily” double from today’s level once the Beal facility is repaid, and he reiterated that NAT does not use a fixed payout ratio but distributes excess cash it deems suitable. Management also noted that two recently ordered ships cost about $54 million to $55 million each when ordered, and suggested similar ships might now cost in excess of $80 million.

Herbjørn Hansson struck an optimistic, highly confident tone and framed the current environment as exceptionally favorable for tanker owners. He said there is a scarcity of ships, rising transportation work, and very low new tanker ordering, and he argued that uncertainty and geopolitical disruption tend to benefit the business. He also stressed NAT’s relationships with major oil companies, its transparency, and its focus on strong ships, good people, and emissions reduction through speed management.

Bjørn Giæver focused on balance-sheet and capital allocation priorities. He said the company wants to continue paying down the Beal facility, and that once it is repaid, shareholders could see the dividend double from today’s levels, although NAT does not set a formal payout ratio and instead distributes excess cash. He also said 15 of 19 tankers are in the spot market and that, because tanker orders placed today would likely deliver in early 2026, the low order book should remain supportive.

Analyst questions centered on how this cycle compares with past tanker upcycles, whether NAT might shift more toward spot versus time chartering, and how the company would think about dividend payout levels after debt repayment. Management answered that this is the best market they have seen, with very low fleet growth expected over the next year or more, and said the current spot-heavy strategy will likely continue. A private investor also asked about crew nationality and safety; Hansson said the company has crews including Filipinos, Russians, and Ukrainians working well together and reiterated strict compliance with U.S. rules. Another question clarified that two new tankers were chartered out to the Sultanate of Oman on long-term contracts in 2023 or 2024, at rates management said were in the mid-20s, higher than the investor’s estimate.