FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D. C. 20549
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
For
the month of May 2007
NORDIC
AMERICAN TANKER SHIPPING LIMITED
(Translation
of registrant's name into English)
LOM
Building
27
Reid Street
Hamilton,
HM 11
Bermuda
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F [ X ] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)7: ___
Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes
[ ] No [ X ]
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): ________.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
hereto as Exhibit 1 is a press release issued by Nordic American Tanker Shipping
Limited on May 14, 2007 announcing its dividends and earnings in respect
of the
first quarter 2007.
Exhibit
1
Nordic
American Tanker Shipping Ltd. (NYSE:NAT) –
Announces
Dividend and Earnings in Respect of the 1st Quarter
of
2007
Hamilton,
Bermuda, May 14th, 2007
Nordic
American Tanker Shipping Limited (the “Company”) today announced its results for
the 1st quarter
of 2007. The spot tanker market for our suezmax fleet was strong
during 1Q07, enabling the Company to declare a dividend of $1.24 per share
in respect of the quarter. The Company has now declared a dividend
for 39 consecutive quarters. For the last four quarters, including
the dividend to be paid in respect of 1Q07, a total of $4.63 has been declared
in dividends, which represents 13.5% of the average daily share price over
the
same period. While the spot market is generally volatile, the market
for our vessels so far in the 2nd quarter
of 2007 has
continued to be solid.
Highlights
of the first quarter 2007:
|
·
|
The
Board of Directors has declared a dividend of $1.24 per share in
respect
of the 1st
quarter of 2007.
|
|
·
|
The
dividend is expected to be paid on or about May 31st,
2007 to
shareholders of record as of May 23rd.
|
|
·
|
Net
income for 1Q07 was $0.85 per share based on the number of shares
outstanding during the period of 26,914,088 shares. As of May
14th,
2007
the share count is also 26,914,088 shares issued and outstanding,
the same
as at December 31st,
2006.
|
|
·
|
Over
the last 16 months the market capitalization has more than doubled
and
exceeded one billion dollars for the first time February 13th.
|
|
·
|
During
1Q07 our fleet consisted of 12 modern double hull suezmax
tankers.
|
|
·
|
One
vessel was in scheduled drydock resulting in a total offhire of
26
days.
|
Dividends
per Share, Earnings per Share and Financial
Information:
When
reporting our financial data, it is more meaningful to compare one quarter
with
the previous quarter than with the quarter one year ago. This is so because
of
the highly volatile nature of the spot tanker markets.
Operating
cash flow(1) was
$36.1 million for 1Q07 compared to $26.6 million for 4Q06 and $29.5 million
for
1Q06.
The
Board has declared a dividend of $1.24 per share in respect of
1Q07. This compares with a dividend of $1.00 per share in respect of
4Q06. The dividend in respect of 1Q06 was $1.58 per
share.
Net
income for 1Q07 was $22.8 million, or $0.85per share (EPS). This
compares to a net income of $13.7 million or $0.52 per share for
4Q06. In 1Q06, net income was $19.1 million, or $1.07 per
share.
For
the 1st quarter
of 2007, operating costs of our vessels and general and administrative costs
were largely according to our expectations. Across the shipping
industry there is an upward pressure on vessel operating costs – in particular
crewing costs, lubricating oil costs and repair and maintenance
costs.
The
Company is not involved in freight or interest derivatives.
We
currently estimate that our average cash breakeven for our fleet of twelve
vessels is approximately $9,500 per day per vessel. The breakeven
rate is the amount of average daily revenues for our vessels which would
cover
our vessel operating expenses, voyage expenses, if any, cash general and
administrative expenses, interest expense and other financial
charges.
At
the end of 1Q07, our net debt was approximately $11.7 million per
vessel. As of May 14th, 2007,
we have
approximately $326.5 million undrawn under our $500 million revolving credit
facility with maturity in 2010. There is no repayment obligation
during the term of the facility, and the Company pays interest only on drawn
amounts, and a commitment fee for undrawn amounts. Our strong balance
sheet combined with our credit facility provides room for expansion of the
fleet.
Due
to a scheduled 10-year special survey, one vessel was out of service 26 days
from mid-January this year. None of
our other vessels was in dry dock during 1Q07.
In
2Q07 one vessel will be in scheduled drydock which is expected to result
in loss
of income of approximately 20 days.
The
table below shows the number of vessel revenue days over the last nine quarters
for all our vessels, reflecting the growth of the Company.
|
Period
|
1Q05
|
2Q05
|
3Q05
|
4Q05
|
1Q06
|
2Q06
|
3Q06
|
4Q06
|
1Q07
|
|
Revenue
days
|
371
|
549
|
576
|
697
|
720
|
808
|
817
|
919
|
1,047
|
The
market capitalization of the Company also reflects the growth of
NAT.
|
Date
|
Dec.
31, 2005
|
Dec.
31, 2006
|
May
11, 2007
|
|
Market
Capitalization (in
millions)
|
$479.2
|
$918.7
|
$1,068.2
|
For
further details on our financial results, please see later in this
release.
The
Fleet:
Eleven
of the Company’s 12 vessels are trading in the spot market or on spot related
terms, while one vessel remains employed on a long term fixed rate
charter.
The
three vessels
which we took over in November and December of 2006, produced 270 revenue
days
in 1Q07. During the 1Q07, we had 12 vessels in operation –
increasing our revenue days compared with previous quarters.
By
way of comparison, at the end of 2004 the Company had four vessels; at the
end
of 2005 the Company had eight vessels; and at the end of 2006 the Company
had 12
vessels.
|
Vessel
|
Dwt
*
|
Employment
|
|
|
Gulf
Scandic
|
151,475
|
Long
term fixed charter
|
|
|
Nordic
Hawk
|
151,475
|
Spot
related terms
|
|
|
Nordic
Hunter
|
151,400
|
Spot
related terms
|
|
|
Nordic
Voyager
|
149,591
|
Spot
|
|
|
Nordic
Fighter
|
153,328
|
Spot
|
|
|
Nordic
Freedom
|
163,455
|
Spot
|
|
|
Nordic
Discovery
|
153,328
|
Spot
|
|
|
Nordic
Saturn
|
157,332
|
Spot
|
|
|
Nordic
Jupiter
|
157,411
|
Spot
|
|
|
Nordic
Cosmos
|
159,998
|
Spot
|
|
|
Nordic
Moon
|
159,999
|
Spot
|
|
|
Nordic
Apollo
|
159,999
|
Spot
|
|
|
Total
|
1,868,791
|
||
|
|
*Scantling
draft is the maximum draft at which a vessel complies with the
governing
strength requirements of classification
societies
|
We
have decided to consolidate our technical operating functions. The ship
management firm of V.Ships Norway AS (“V.Ships”) is expected to manage 10 of our
vessels later in 2007. V.Ships currently is technically managing five of
the
Company’s vessels. This consolidation will facilitate crew rotation among our
vessels which together with economies of scale should result in cost
improvements.
We
are currently a member of several tanker pools. We expect that a consolidation
will take place, which through economies of scale is expected to create
synergies, causing a positive impact on our overall results.
The
Market:
The average spot market rate, according to the Imarex Tanker Index, was $41,877 per day for 1Q07 compared to $39,727 per day for modern suezmax tankers during 4Q06. The market was strong during 1Q07, with healthy rates continuing into 2Q07. The average Imarex Tanker Index was $38,436 per day from April 1st to and including May 11th, 2007. Short-term spot rates are notoriously difficult to predict. We expect that they may continue to fluctuate significantly.
The
world’s suezmax fleet stood at 352 vessels at the end of the 1Q07, compared
to 346 vessels at the end of 4Q06. Twenty-two new vessels were
delivered during 2006 while no vessels were scrapped. Twenty-three
vessels are scheduled to be delivered from the shipyards in 2007; i.e. on
the
same level as in 2006. The total suezmax orderbook stood at 128 vessels at
the end of the March 2006. At the same time, 72 vessels were
single hull, which are expected to be phased out from the tanker trade by
2010. Out of the 72 single hull suezmax vessel shipping companies
worldwide have decided to convert 17 vessels into purposes other than employment
in the tanker sector. A further weakening of single hull earnings has
continued into 2007 (Source:
Fearnresearch).
Generally,
single hull tankers are facing challenges in the market place as customers
prioritize double hull tonnage. We believe that this development is
advantageous for our Company, which owns only double hull tankers.
Going
forward, deliveries of new tankers from shipyards over the next few years
can be
estimated with a high degree of certainty. The shipyards are expected
to operate at more or less full capacity with their present orderbooks, and
new
orders placed for suezmax tankers are typically for delivery in 2010 or
later.
The
level of the tanker market in the future is above all dependent on the
development of the world economy.
Strategy
going forward:
The
operations of the Company are based on its unique and successful operating
model
which combines a transparent and predictable full dividend payout policy
with
high spot market exposure and a strong balance sheet. Focus is also
on a cost effective management of the Company, both in regard to the operating
expenses of the vessels and general and administrative expenses, in order
to
maintain a low cash break-even level of operations. The consolidation of
our
participation in pools and of technical management functions is expected
to
create synergies, impacting positively the overall results.
The
Company's exposure to the spot market is based on our analysis showing that
the
spot market over time can be expected to produce higher revenues on average
than
the time charter market. With a strong balance sheet, a full dividend
payout policy can be maintained. It is an inefficient use of capital to
accumulate cash reserves on the balance sheet. A certain amount of term
charter coverage is being contemplated from time to time.
The
main objective of the Company is to maximize its total return(2) for shareholders
via a transparent, predictable and simple strategic platform. In our
communication with the stock market we encourage investors wishing to have
tanker exposure, to assess our operating model and to invest in our
Company. Growth continues to be an inherent part of the operating
model and further expansion can be expected. The expansion of the
Company is bolstering its earnings and dividend capacity per
share.
*
*
* * *
_________________________
|
(1)
|
Operating
cash flow is a non-GAAP financial term often used by investors
to measure
financial performance of shipping companies. Operating cash
flow represents income from vessel operations before depreciation
and
non-cash administrative charges. Please see page 7 for a
reconciliation of this non-GAAP measure as used in this release
to the
most directly comparable GAAP financial measure.
|
| (2) | The total return is based the price for our common shares plus dividends reinvested in our common shares. |
NORDIC
AMERICAN TANKER SHIPPING LIMITED
| Amounts in USD ‘000 | |||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||||
|
CONDENSED
STATEMENTS
OF
OPERATION
|
Mar
31,
2007
(unaudited)
|
Dec.
31,
2006
(unaudited)
|
Mar
31,
2006
(unaudited)
|
Dec.
31,
2006
(unaudited)
|
|||||||||||||
|
NET
VOYAGE REVENUE
|
44,605
|
34,269
|
34,958
|
135,348
|
|||||||||||||
|
OPERATING
EXPENSES
|
|||||||||||||||||
|
Vessel
operating expenses
|
(7,291 | ) | (6,105 | ) | (4,449 | ) | (21,102 | ) | |||||||||
|
Depreciation
|
(10,188 | ) | (8,456 | ) | (6,285 | ) | (29,254 | ) | |||||||||
|
General
and administrative costs
|
(1,591 | ) | (5,188 | )* | (3,839 | )* | (12,750 | )** | |||||||||
| (19,070 | ) | (19,749 | ) | (14,573 | ) | (63,106 | ) | ||||||||||
|
Income
from vessel operation
|
25,
535
|
14,520
|
20,385
|
72,242
|
|||||||||||||
|
OTHER
ITEMS
|
|||||||||||||||||
|
Interest
income
|
192
|
962
|
279
|
1,602
|
|||||||||||||
|
Interest
expense
|
(2,919 | ) | (1,737 | ) | (1,580 | ) | (6,451 | ) | |||||||||
| (2,727 | ) | (775 | ) | (1,301 | ) | (4,849 | ) | ||||||||||
|
NET
INCOME
|
22,808
|
13,745
|
19,084
|
67,393
|
|||||||||||||
|
Earnings
per average number of shares
|
0.85
|
0.52
|
1.07
|
3.14
|
|||||||||||||
|
Weighted
average number of shares
|
26,914,088
|
26,276,292
|
17,880,812
|
21,476,196
|
|||||||||||||
|
Common
shares outstanding
|
26,914,088
|
26,914,088
|
21,029,700
|
26,914,088
|
|||||||||||||
| *) | The G&A for the three months ended Dec. 31, 2006 and Mar. 31, 2006 include non-cash charges of $3.6 and $2.9m respectively which are charges related to share based compensation and the 2004 Stock Option Plan. |
|
|
|
| **) |
The
G&A for the twelve months ended Dec. 31, 2006 include non-cash charges
of $7.9m which are charges related to share based compensation
and the
2004 Stock Option Plan.
|
|
CONDENSED
BALANCE SHEETS
|
Mar.
31, 2007
(unaudited)
|
Dec.
31, 2006
unaudited)
|
||||||
|
Cash
deposits
|
19,896
|
11,729
|
||||||
|
Accounts
receiveable
|
18,452
|
13,416
|
||||||
|
Other
current assets
|
10,851
|
19,333
|
||||||
|
Vessels
|
745,105
|
752,478
|
||||||
|
Other
long term assets
|
3,109
|
3,224
|
||||||
|
Total
Assets
|
797,413
|
800,180
|
||||||
|
Accounts
payable
|
674
|
3,006
|
||||||
|
Accrued
liabilities
|
12,025
|
11,728
|
||||||
|
Long-term
debt
|
176,500
|
173,500
|
||||||
|
Shareholders'
equity
|
608,214
|
611,946
|
||||||
|
Total
liablilities and shareholders' equity
|
797,413
|
800,180
|
||||||
NORDIC
AMERICAN TANKER SHIPPING LIMITED
|
Three
months ended
|
Twelve
Months
Ended
|
||||||||||||
|
CONDENSED
STATEMENTS OF
CASH
FLOW
|
March
31,
2007
(unaudited)
|
March
31,
2006
(unaudited)
|
Dec.
31,
2006
(unaudited)
|
||||||||||
|
OPERATING
ACTIVITIES
|
|||||||||||||
|
Net
cash from Operating Activitites
|
34,909
|
36,099
|
107,067
|
||||||||||
|
FINANCING
ACTIVITIES
|
|||||||||||||
|
Net
proceeds from sale of Common Stock
|
0
|
115,168
|
287,904
|
||||||||||
|
Proceeds
from use of Credit Facility
|
3,000
|
6,900
|
274,500
|
||||||||||
|
Repayment
of debt
|
0
|
(116,000 | ) | (231,000 | ) | ||||||||
|
Loan
facility costs
|
(13 | ) |
0
|
(591 | ) | ||||||||
|
Dividends
paid
|
(26,914 | ) | (31,292 | ) | (122,591 | ) | |||||||
|
Net
Cash provided by (used for) Financing Activities
|
(23,927 | ) | (25,224 | ) |
208,222
|
||||||||
|
INVESTING
ACTIVITIES
|
|||||||||||||
|
Investment
in Vessels
|
(2,815 | ) | (7,122 | ) | (317,800 | ) | |||||||
|
Net
cash used by investing activitites
|
(2,815 | ) | (7,122 | ) | (317,800 | ) | |||||||
|
Net
Increase in Cash and Cash Equivalents
|
8,167
|
3,754
|
(2,511 | ) | |||||||||
|
Beginning
Cash and Cash Equivalents
|
11,729
|
14,240
|
14,240
|
||||||||||
|
Ending
Cash and Cash Equivalents
|
19,896
|
17,994
|
11,729
|
||||||||||
NORDIC
AMERICAN TANKER SHIPPING LIMITED
Reconciliation
of non-GAAP financial measures
(Amounts
in USD '000)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
Mar.
31,
2007
|
|
Dec.
31,
2006
|
Mar.
31,
2006
|
Dec.
31,
2006
|
||||||||||||
|
Voyage
revenue
|
58,049
|
45,142
|
45,179
|
175,520
|
||||||||||||
|
Voyage
expenses
|
(13,444 | ) | (10,873 | ) | (10,221 | ) | (40,172 | ) | ||||||||
|
Net
voyage revenue (1)
|
44,605
|
34,269
|
34,958
|
135,348
|
||||||||||||
|
Three
Months Ended
|
|||||||||||||
|
Mar.
31,
2007
|
|
|
Dec.
31,
2006
|
|
Mar.
31,
2006
|
||||||||
|
Income
from vessel operations
|
25,535
|
14,520
|
20,385
|
||||||||||
|
Depreciation
|
10,188
|
8,456
|
6,285
|
||||||||||
|
Share
Based Compensation/ Stock Option Plan
|
374
|
3,691
|
2,881
|
||||||||||
|
Operating
Cash Flow (2)
|
36,097
|
26,667
|
29,551
|
||||||||||
|
(1)
|
Net
voyage revenues represents voyage revenues less voyage expenses
such as
bunker fuel, port fees, canal tolls and brokerage commissions.
Net voyage
revenues is included because certain investors use this data
to measure a
shipping company's financial performance. Net voyage revenues
is not
required by accounting principles generally accepted in the United
States
and should not be considered as an alternative to net income
or any other
indicator of the Company's performance required by accounting
principles
generally accepted in the United States.
|
| (2) | Operating
cash flow represents income from vessel operations before depreciation
and
non-cash administrative charges. Operating cash flow is included
because
certain investors use this data to measure a shipping company's
financial
performance. Operating cash flow is not required by accounting
principles
generally accepted in the United States and should not be considered
as an
alternative to net income or any other indicator of the Company's
performance required by accounting principles generally accepted
in the
United States. |
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters
discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements in order
to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements
of
historical facts.
The
Company desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words
“believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “will,” “may,” “should,” “expect,” “pending” and similar
expressions identify forward-looking statements.
The
forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available
from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible
to
predict and are beyond our control, we cannot assure you that we will achieve
or
accomplish these expectations, beliefs or projections. We undertake
no obligation to update any forward-looking statement, whether as a result
of
new information, future events or otherwise.
Important
factors that, in our view, could cause actual results to differ materially
from
those discussed in the forward-looking statements include the strength of
world
economies and currencies, general market conditions, including fluctuations
in
charter rates and vessel values, changes in demand in the tanker market,
as a
result of changes in OPEC's petroleum production levels and world wide oil
consumption and storage, changes in our operating expenses, including bunker
prices, drydocking and insurance costs, the market for our vessels, availability
of financing and refinancing, changes in governmental rules and regulations
or
actions taken by regulatory authorities, potential liability from pending
or
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires and other important factors
described from time to time in the reports filed by the Company with the
Securities and Exchange Commission, including the prospectus and related
prospectus supplement, our Annual Report on Form 20-F, and our reports on
Form
6-K.
Contacts:
Scandic
American Shipping Ltd
Manager
for:
Nordic
American Tanker Shipping Ltd.
P.O
Box
56, 3201 Sandefjord, Norway
Tel:
+ 47
33 42 73 00 E-mail: nat@scandicamerican.com
Web-site: www.nat.bm
Rolf
Amundsen, Investor Relations
Nordic
American Tanker Shipping Ltd.
Tel:
+1
800 601 9079 or + 47 908 26 906
Gary
Wolfe
Seward
& Kissel LLP, New York, USA
Tel:
+1
212 574 1223
Herbjørn
Hansson, Chairman & CEO
Nordic
American Tanker Shipping Ltd.
Tel:
+1 866 805 9504 or + 47 901 46 291
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
NORDIC
AMERICAN TANKER SHIPPING LIMITED
(registrant)
|
Dated: May
14, 2007
|
By:
|
/s/
Herbjørn Hansson
|
||
|
Herbjørn
Hansson
|
||||
|
Chairman,
Chief Executive Officer and
President
|
||||
SK
01318 0002
773876