Nordic American Tankers Ltd: The direction of NAT is unquestionably upwards – rates & values are up
Dear Shareholders and Investors, In our report to you a short while ago, we described how Nordic American Tankers Ltd (NAT) fared this summer. Summary: We succeeded in getting three of our NAT ships through the Hormuz strait, leaving the area. The three ships had been stuck in the Arabian Gulf since February 28th, 2026, ...
Nordic American Tankers Ltd (NAT) has experienced significant growth this summer, with ship rates and values on the rise. The company recently managed to navigate three of its vessels through the Hormuz Strait, where they had been held since February 28th, 2026, due to tensions between Iran and the US. Two of these ships are now trading internationally, while one, built in 2003, has been sold for $26 million. The Hormuz action resolved a critical issue for NAT.
Presently, NAT operates in an exceptionally strong market, with ships earning between $60,000 and $90,000 per day on average in the spot market. Major oil companies are the company's primary customers. Operating costs remain low, at less than $10,000 per day, resulting in a substantial cash accumulation of $175 million. A few months ago, a NAT ship faced an attack in the Black Sea but managed to escape unharmed.
NAT maintains strict policies, ensuring that banks have no influence over its operations. The company's financial partners are Dallas-based Beal Bank and Ocean Yield. Although the year is only halfway through, 2026 is expected to be the best year for NAT since its listing on the stock exchange in 1995.
Key highlights of NAT's performance include a Q2 2026 dividend of 27 cents per share, up from 22 cents in the previous quarter – marking the 116th consecutive quarterly cash dividend since the company's listing. The time charter equivalent (TCE) for NAT's ships increased to $63,000 per day per ship in the second quarter, up from $47,600 per day per ship in the previous quarter. As of the third quarter, about 75% of the company's fleet is booked at around $54,000 per day per ship.
Geopolitical uncertainty is not a new aspect of NAT's business, but the company anticipates that this uncertainty will persist. Despite the challenges, NAT remains confident that demand for its services will continue to grow. Over the past five years, the company's vessels have loaded/discharged in 68 countries, providing valuable insights into global affairs.
NAT's top-quality vessels, as reflected in the vetting performance of major oil companies, account for about 50% of the company's fleet. With two more ships on order, NAT currently operates 17 vessels.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.