FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 2005
NORDIC AMERICAN TANKER SHIPPING LIMITED
(Translation of registrant's name into English)
Canon's Court
22 Victoria Street
Hamilton HM 12
Bermuda
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [_] No [X]
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto as Exhibit 1 is a copy of a press release announcing the
second quarter results of Nordic American Tanker Shipping Limited (the
"Company") dated August 2, 2005.
[company logo]
Nordic American Tanker Shipping Ltd. (NAT) - (NYSE: NAT) Announces 2nd quarter
2005 Results
Hamilton, Bermuda, August 2nd 2005
Nordic American Tanker Shipping Ltd. (the "Company") today announced its result
for the second quarter of 2005.
The Board has declared a third quarter 2005 dividend of USD 0.84 per share. In
the preceding quarter the dividend was USD 1.15. The dividend will be paid on or
about August 26th 2005 to shareholders of record August 10th 2005. As per June
30, 2005 there are 16,644,496 shares in issue. For further financial information
please see page three of this message.
The spot market rates for suezmax tankers in the second quarter of 2005 were
lower than the rates in the first quarter of 2005. According to the spot
assessment of the Imarex Tanker Index, suezmax spot rates were on average USD
32,654 per day during the second quarter of 2005, as against USD 46,947 per day
during the first quarter of 2005. No vessel operational down time was incurred
during the second quarter of 2005.
The operating cash flow(*) was USD 14.1 million in the second quarter of 2005,
compared to USD 13.9 million in the first quarter of 2005. During the second
quarter of 2005, we had one vessel operating on fixed rate long-term employment
and five vessels in the spot market or on spot market related terms.
In June 2005 the Company announced that it had agreed to acquire a 1998 built
double hull suezmax tanker. The vessel, to be renamed Nordic Discovery, is
expected to be employed in the spot market after delivery to us in mid-August
2005. Nordic Discovery is the sister vessel of the Nordic Fighter.
For the foreseeable future, the Company's Board intends to continue its policy
of maintaining a low debt to equity ratio and of pursuing a full dividend payout
policy as in the past.
Another essential part of our strategic platform is expansion of the fleet of
high quality double hulled vessels. An objective is that all vessel acquisitions
and other projects that we may implement in the future are designed to be
accretive to earnings and dividends per share.
It is hard to predict the short term spot tanker rates which may rise from the
present level, may remain at the same level or may drop. Whilst we are always
faced with uncertainties, the Board holds the view that the general tanker
market dynamics are favourable.
Industry analysts indicate that global oil demand may be expected to increase up
to 4 million barrels per day from the second quarter 2005 to the fourth quarter
2005 - a development which is expected to impact tanker demand positively during
the coming autumn and winter. The seasonal pattern is often that rates may be
weaker during late spring and summer than during the autumn and the winter
season. Above all, the longer term prospects depend on developments at the macro
economic level. The US and the Far East, in particular China, are key players in
this regard.
The Company completed the transformation from a financial lease company into an
operating company in October 2004. Since then, the fleet of the company has
increased from three to seven ships (including the vessel to be delivered in
mid-August 2005) all of which are modern double-hulled suezmax crude oil
tankers. As of mid-August, we expect to have one vessel operating on fixed rate
long-term employment and six vessels in the spot market or on spot market
related terms.
The fleet is now:
Name Built Size(DWT) Employment
---- ----- --------- ----------
Gulf Scandic 1997 151,458 long term contract
Nordic Hunter 1997 151,458 spot employment
Nordic Hawk 1997 151,458 spot employment
Nordic Voyager 1997 149,591 spot employment
Nordic Fighter 1998 153,181 spot employment
New acquisition (**) 1998 153,181 to be employed in the spot market
Nordic Freedom 2005 159,500 spot employment
(**) to be delivered and renamed Nordic Discovery in mid-August 2005
During the third quarter of 2005 the Nordic Hawk will be drydocked according to
plan which is expected to cause a loss of income that otherwise would have been
earned during approximately 20 days. Typically, a vessel is in drydock every 36
to 60 months for classification and general maintenance purposes.
To enhance our financial flexibility we have a revolving credit facility of USD
300 million which is currently unutilized. This credit facility will be replaced
by a five year non-retiring fully revolving facility during August 2005. During
the term of the facility we can draw down amounts in connection with vessel
acquisitions or for general corporate purposes, and shall pay interests only on
any drawn amount.
The Company is in a good position to provide for continued accretive growth
based upon its unique operating model.
*****
(*) 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 before depreciation, amortization expense and certain
non-cash administrative charges. Please see the Company's Web-site at
www.nat.bm for a reconciliation of this non-GAAP measure as used in this
release to the most directly comparable GAAP financial measure.
CONDENSED STATEMENTS OF OPERATION
Amounts In USD '000
Three Months Ended Six Months Ended
------------------------------------------------ ------------------------------
June 30, 2005 June 30, 2004 March 31, 2005 June 30, 2005 June 30, 2004
(unaudited) (unaudited)
------------------------------------------------------------------------------------------------------------------------------------
NET VOYAGE REVENGE 18,003 9,442 16,150 34,153 26,810
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Vessel operating expenses (2,986) 0 (1,512) (4,498) 0
Depreciation (4,188) (1,708) (2,702) (6,890) (3,415)
General and administrative costs (1,297) (441) (4,477) (5,774) (716)
------------------------------------------------------------------------------------------------------------------------------------
(8,471) (2,149) (8,691) (17,162) (4,131)
------------------------------------------------------------------------------------------------------------------------------------
Income from vessel operation 9,532 7,293 7,459 16,991 22,679
------------------------------------------------------------------------------------------------------------------------------------
OTHER ITEMS
Interest income 233 15 328 561 27
Interest expense (325) (438) (331) (656) (882)
------------------------------------------------------------------------------------------------------------------------------------
(92) (423) (3) (95) (855)
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME 9,440 6,870 7,456 16,896 21,824
Earnings per average number of shares 0.57 0.71 0.53 1.10 2.25
Weighted average number of shares 16,644,496 9,706,606 14,020,761 5,339,877 9,706,606
------------------------------------------------------------------------------------------------------------------------------------
Common shares outstanding 16,644,496 9,706,606 16,644,496 16,644,496 9,706,606
------------------------------------------------------------------------------------------------------------------------------------
CONDENSED BALANCE SHEETS June 30, 2005 June 30, 2004 December 31, 2004
(unaudited)
--------------------------------------------------------------------------------------------------
Cash deposits 18,310 681 30,732
Other assets 9,975 5,848 6,170
Vessels 337,401 124,666 187,301
--------------------------------------------------------------------------------------------------
Total Assets 365,686 131,195 224,203
--------------------------------------------------------------------------------------------------
Accounts payables and accrued liabilities 1,087 177 2,335
Long-term debt 0 30,000 0
--------------------------------------------------------------------------------------------------
Shareholders' equity 364,599 101,018 221,868
--------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity 365,686 131,195 224,203
--------------------------------------------------------------------------------------------------
CONDENSED STATEMENTS OF CASH FLOW
Six months ended Twelve Months Ended
------------------------------- --------------------
June 30, 2005 June 30, 2004 December 31, 2004
(unaudited)
---------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
---------------------------------------------------------------------------------------------------------------------
Net cash from Operating Activities 22,911 27,779 62,817
FINANCING ACTIVITIES
Net proceeds from sale of Common Stock 161,967 0 112,138
Repayment of debt 0 0 (30,000)
Loan facility costs 0 0 (1,456)
Dividends paid (40,311) (27,664) (47,196)
---------------------------------------------------------------------------------------------------------------------
Net Cash provided by (used for) Financing Activities 121,656 (27,664) 33,486
---------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES (156,989) 0 (66,137)
Investment in Vessels
---------------------------------------------------------------------------------------------------------------------
Net cash used by Investing activities (156,989) 0 (66,137)
Net Increase in Cash and Cash Equivalents (12,422) 115 30,166
Beginning Cash and Cash Equivalents 30,732 566 566
---------------------------------------------------------------------------------------------------------------------
Ending Cash and Cash Equivalents 18,310 681 30,732
---------------------------------------------------------------------------------------------------------------------
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," "will," "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-hires 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 and our Annual Report on Form 20-F.
Contacts: Scandic American Shipping Ltd.
Manager for:
Nordic American Tanker Shipping Ltd.
P.O Box 56, 3201 Sandefjord, Norway
Tel: + 47 33 42 73 00 E-mail: nat@scandicamerican.com
Web-site: www.nat.bm
Rolf Amundsen
Chief Financial Officer
Nordic American Tanker Shipping Ltd.
Tel: +1 800 601 9079 or + 47 908 26 906
Gary Wolfe
Seward & Kissel LLP, New York, USA
Tel: +1 212 574 1223
Herbj0rn Hansson
Chairman & CEO
Nordic American Tanker Shipping Ltd.
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: August 3, 2005 By: /s/ Herbjorn Hansson
----------------------------
Herbjorn Hansson
Chairman, Chief Executive Officer
and President
01318.0002 #591620