Nordic American Tankers Limited (NAT) has secured a one‑year time charter at a daily rate of $75,000, a figure that translates to roughly $27.4 million in annual revenue for the vessel. The charter is with a major oil company, reinforcing the company’s strategy of leveraging its homogeneous Suezmax fleet to capture premium rates in a tight market.
The $75,000 daily rate is a striking spread over NAT’s operating cost of under $10,000 per day, yielding a gross margin of more than 90 % on the contract. The high rate also supports the company’s debt‑repayment agenda, as the charter’s cash flow contribution is expected to accelerate the repayment of long‑term debt and improve the debt‑to‑equity ratio, which stood at 95.2 % as of the latest analysis. The charter’s one‑year term provides a predictable revenue stream that can be matched against the company’s capital‑expenditure schedule for fleet renewal.
NAT’s focus on high‑rate spot and time charters has been a key driver of its recent financial performance. In Q4 2025, the company reported an EBITDA of $34.7 million and a net result of $11.7 million, a performance that the charter is expected to bolster. The company’s fleet is entirely Suezmax, a homogeneous configuration that allows for operational interchangeability and cost efficiencies. Recent sales of older vessels built in 2003‑2005 have further improved financial flexibility, freeing capital for newbuild orders slated for delivery in 2028.
Founder, Chairman and CEO Herbjorn Hansson highlighted the strength of the market, noting that “the market for us is strong” and that the company’s operating costs are “less than $10,000 per day.” He also emphasized that the sale of older vessels has “improved our financial flexibility and strengthened NAT.” Hansson added that geopolitical uncertainty “normally increases demand for our services,” underscoring the tailwind that supports the company’s chartering strategy.
The charter is part of a broader pattern of strong demand from major oil majors, which account for more than 50 % of NAT’s business. The company’s continued reliance on these customers, combined with its fleet modernization and disciplined cost structure, positions it to capture premium rates while managing headwinds such as fluctuating fuel costs and regulatory changes. The one‑year charter therefore represents a significant, positive development for NAT’s near‑term cash flow and long‑term financial health.
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