Nordic American Tankers’ CORVID-19 statement

Nordic American Tankers’ CORVID-19 statement


Nordic American Tankers (NAT) has written an open letter to its shareholders to reassure them about the ongoing CORVID-19 pandemic. In it, it says “we do not see negative implications for NAT”.

The letter went on to say: “Political uncertainty may create positive implications for NAT. The last few years, irrespective of the Corona Virus, there are exports of crude oil from the USA. This development creates work for many suezmaxes of our type.”

It said it had already referred to the Coronavirus in a press release dated January 31, 2020, stating that it did not see any implications for NAT from the virus. Furthermore, in the NAT Q4 2019 report of Tuesday February 18, 2020 it drew the same conclusion:” We have learnt over the years that we do not necessarily see negative implications for NAT in times when there is political uncertainty.”

It said: “It is part of our business to handle risk. We have traded ships in Hormuz for decades – Hormuz in the Persian Gulf is an area between the adversaries Saudi Arabia and Iran of about 30 nautical miles.

Although the indirect effects from the virus may have short term negative implications for the oil market, it does not necessarily impact the market for NAT.”

As an example, it said it now sees increased demand for storage space. Several of its ships are employed in this way. It said: “In tough times, you always have cans of reserve food in your basement. Now we have reserve oil.”

It concluded: “The NAT tanker business has a solid future – short term bumps in the road, caused by Virus or other contingencies, do not distort our expectations in this regard. The East/Far East remain the area of growth in the years to come – the economic machine of international business, stimulating the NAT tanker business.”

For more information visit www.nat.bm

26th March 2020