Nordic American Tankers Ltd. (NAT) sold a 2003‑built Suezmax tanker for a net cash inflow of $25 million. The vessel, which carried no debt, was removed from the company’s fleet, reducing the total number of tankers from 20 to 19.
The sale is part of NAT’s ongoing fleet‑modernization program, which has already seen the company divest older vessels and place orders for newer, more efficient tankers. By off‑loading a 23‑year‑old ship, NAT strengthens its balance sheet, improves liquidity, and moves closer to its goal of becoming debt‑free. The $25 million proceeds also support the company’s dividend policy, which is based on net operating cash flow and has historically paid quarterly dividends of $0.13 per share.
Eliminating the vessel removes its maintenance and operating costs—expenses that can be significant for older tankers. The cash inflow and cost savings are expected to boost free cash flow, providing additional capacity for future capital expenditures or dividend payments. Management views the transaction as a step toward higher operating efficiency and a more resilient fleet mix.
The sale comes amid a favorable spot‑rate environment for Suezmax tankers, where limited supply and steady demand have driven higher freight rates. NAT’s focus on newer, fuel‑efficient vessels positions it to capture these premium rates while reducing fuel and crew costs. The company’s recent sales of two 2004‑ and 2005‑built tankers for $50 million and its preliminary agreements for two newbuilds slated for 2028 delivery underscore its commitment to fleet renewal.
CEO Herbjorn Hansson said, “We are pleased to have entered into a sales agreement for a 2003‑built Suezmax tanker. The $25 million net proceeds and the fact that the vessel carried no debt reinforce our solid financial position and support our ongoing strategy to modernize the fleet.”
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