Nordic American Tankers Limited (NAT) secured a one‑year fixed charter with a major oil company, locking in a daily rate of more than $50,000. The agreement adds a stable, high‑rate revenue stream to NAT’s Suezmax fleet, which has traditionally earned income from the spot market where rates can swing widely.
The charter rate exceeds NAT’s average time‑charter equivalent (TCE) of $35,000 per day reported for Q4 2025, and sits well above the company’s operating cost of roughly $9,000 per day. The resulting margin supports a healthy contribution to EBITDA and strengthens the firm’s cash‑flow profile.
The deal aligns with NAT’s strategy of balancing long‑term, high‑rate contracts with spot exposure. By securing predictable income, the company can better service debt, fund future fleet renewal, and continue its dividend‑growth program while working toward a debt‑free balance sheet.
Management highlighted the favorable market environment, noting that "The direction of NAT is up," "The market is very solid for our ships," and "The long‑term outlook for our fleet of tankers is bright," underscoring the scarcity of compliant vessels that is driving higher charter rates.
The charter follows NAT’s Q4 2025 results, which included a net profit of $11.7 million, EBITDA of $34.7 million, and a cash position exceeding $100 million. The company also declared a $0.17 per share dividend, its 114th consecutive quarterly payout. Fleet renewal activities include the acquisition of two 2016‑built Suezmax tankers, the ordering of two newbuilds for delivery in 2028, and the sale of four older vessels built between 2003 and 2005.
By adding a predictable, high‑rate contract, NAT reduces exposure to spot‑market volatility and positions itself to meet debt‑service obligations and fund future fleet expansion, reinforcing its trajectory toward a debt‑free balance sheet and continued dividend growth.
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