Nordic American Tankers (NAT) said it will log $51.9m in additional impairment charges after completing an effort to sell four older suezmax tankers.
The New York-listed suezmax tanker owner said on Tuesday that it sold the fourth vessel, without providing details for the transaction other than to say that the company took advantage of rising prices.
Data from ship valuation service VesselsValue and Greek shipbroker Golden Destiny indicates the company sold 164,000-dwt Nordic Passat (built 2002) for $15.5m to undisclosed buyers.
The price level suggests a sale to a demolition buyer, and satellite tracking data shows the vessel anchored off the ship recycling centre of Gadani, Pakistan.
The Herbjorn Hansson-led company said the ship was delivered to its new owner on 12 April.
NAT said that the sale is part of an effort announced in July to sell a quartet of vessels as part of the company’s policy to hold on to ships until the end of their useful life. The sales provided a cash injection of $60m.
“No tanker company on Wall Street has the strategy of NAT,” the company said in the first line of an announcement written with the company’s characteristic departure from typical corporate disclosure language.
“NAT does not buy and sell suezmaxes as a business proposition.”
VesselsValue data and reports from US shipbrokers also show that Norway-based NAT sold the 150,000-dwt Nordic Grace (built 2002) in March for demolition in India at a price of $15m.
Satellite tracking data shows that the ship, renamed Iria, recently arrived at the shipbreaking centre of Alang.
NAT also offloaded the 164,000-dwt Nordic Mistral (built 2002) in February and the 150,000-dwt Nordic Sirius (built 2000) in October.
With a non-cash impairment charge of $8.4m already logged in the fourth quarter of 2021, NAT said on Tuesday that its annual report will now be adjusted to reflect total impairments of $60.3m.
The company said its 2022 numbers will not be affected.
The suezmax quartet was partially replaced by two newbuildings due for delivery in May and June from Samsung Heavy Industries. They both have six-year charters to “first-class contractual partners”.
NAT, whose website lists a fleet of 21 tankers and newbuildings, suggested that many more ships could be added.
“We expect that our fleet will grow with the objective of having about 30 suezmax vessels the next few years,” the company said.
NAT said it is on the way to becoming debt-free, and the positive spot tanker market will boost its ability to pay dividends.
