Nordic American Tankers Faces Rough Seas: Q1 Revenue Misses Estimates Amid Fleet Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Nordic American Tankers Limited Financials: NAT reported lower-than-expected first-quarter net voyage revenue of $60.572 million, missing the consensus of $76.562 million.
- Financial Performance: The company's average time charter equivalent (TCE) for its fleet was $33,570 per day per ship in the quarter, with a significant decrease in net operating income and adjusted EBITDA compared to the previous year.
- Cash Flow and Debt: Operating cash flow for the quarter was $37.589 million, and NAT's net debt stood at $228 million, translating to $11.4 million per ship based on 20 vessels as of March-end.
- Dividend Declaration: Nordic American Tankers declared a dividend per share of $0.12, payable on July 18 to shareholders of record as of June 28.
- Future Fleet Expansion: The company plans to add new vessels to its Suezmax fleet in the coming years, with 6 in 2024, 23 in 2025, and 38 in 2026. Additionally, there are new build orders for 2027 and 2028.
Analyst Views on NAT
Wall Street analysts forecast NAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NAT is 3.00 USD with a low forecast of 3.00 USD and a high forecast of 3.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 4.010
Low
3.00
Averages
3.00
High
3.00
Current: 4.010
Low
3.00
Averages
3.00
High
3.00
About NAT
Nordic American Tankers Limited is an international tanker company focusing solely on owning, operating, and chartering of Suezmax tankers. The Company has a fleet of approximately 20 Suezmax crude oil tankers. Its Suezmax vessels have a carrying capacity of one million barrels of oil. The Company's tankers operating in the spot market are chartered for a single voyage. The vessels in the Company's fleet are homogenous and interchangeable as they have the same freight capacity and ability to transport the same type of cargo. Its vessels include Nordic Pollux, Nordic Apollo, Nordic Luna, Nordic Castor, Nordic Freedom, Nordic Sprinter, Nordic Skier, Nordic Vega, Nordic Light, Nordic Cross, Nordic Breeze, Nordic Zenith, Nordic Star, Nordic Space, Nordic Aquarius, Nordic Cygnus, Nordic Tellus, Nordic Hunter and Nordic Harrier.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
