The war in Russia and historic low orderbook levels are set to fuel earnings at suezmax tanker specialist Nordic American Tankers as it announced a sharp rise in quarterly profits.
NAT chief executive Herbjorn Hansson reported net profit of $36m in the fourth quarter of 2022 following a $72.9m loss from the year before.
The New York-listed owner of 19 suezmax oil tankers said current orders represented only 2% of the existing fleet, a 30-year-low, which would continue for several years.
Environmental regulations, increased steel and production costs and higher interest rates made it difficult to invest in new ships.
The drive for energy security, prompted by the invasion of Ukraine, had seen oil sourced from further away and encouraged hoarding — all adding to suezmax demand, the company said.
“As we have seen in the past, political uncertainty creates demand for the transport of oil,” it said.
The company said it had booked 72% of its spot voyage days for the first quarter of 2023 at an average of $60,630 per day per ship.
That compared with an average of $49,035 per day in the fourth quarter.
Fifteen of the company’s 19 tankers operate on the spot market.
“All of the above are good news for the short and long-term outlook for our tankers,” the company said. “It is our opinion that the tanker markets will continue strong in the coming years.”
