Nordic American Tankers has placed a newbuilding order for the first time in four years as shipyards reduce their sale prices amid depressed demand.
The New York-listed shipowner said it booked two suezmaxes at Samsung Heavy Industries for delivery in the first half of 2022.
“The combination of specifications, quality of yard, price, payment terms and deliveries make this an attractive investment for Nordic American Tankers and is consistent with our strategy to expand and renew our fleet,” the company said in a statement.
Norway-headquartered Nordic American Tankers previously ordered three suezmax tankers at the same yard in 2016, and the vessels were delivered in 2018.
“Through the years we have enjoyed an excellent relationship with the shipbuilding sector in South Korea, and we are happy to conclude further suezmax newbuilding contracts with Samsung Heavy Industries,” the company said.
Nordic American Tankers said it has funded 20% of the newbuilding payments and will consider various financing alternatives prior to deliveries.
No further details are disclosed. TradeWinds has approached chief executive Herbjorn Hansson for further comment.
With regulatory uncertainty and the coronavirus pandemic, shipbuilders have faced a dearth of newbuilding orders and been forced to cut prices this year.
Clarksons Research estimates the current newbuilding price for a suezmax at $56m, the lowest since February 2018.
Just 26 crude tankers have been ordered so far this year, comprising 12 VLCCs, 11 suezmaxes and three aframaxes.
Nordic American Tankers’ return to the newbuilding market came after it posted a net profit of $49.1m between January and June, a significant reversal from the $9.34m loss for the same period of 2019.
The strong performance came as spot tanker rates reached multi-year highs in the second quarter due to buoyant floating storage demand.
Including the latest newbuilding deal, Nordic American Tankers has a fleet of 25 suezmaxes – including 23 in operations.
