Nordic American Offshore Ltd. (NYSE:NAO) - 3Q2016 Dividend and Earnings Report
(Thomson Reuters ONE) -
Link to the complete 3rd Quarter 2016
report: http://hugin.info/159489/R/2056555/770316.pdf
Hamilton, Bermuda, November 14, 2016.
The operating cash flow[1] for Nordic American Offshore Ltd. ("NAO" or "the
Company") was -$3.4m in 3Q2016. NAO is better positioned compared with other
companies in the industry. During the quarter we saw a number of financial
restructurings. Access to financing is a competitive advantage for NAO.
NAO has ten high-quality Platform Supply Vessels (PSVs) built in Norway in the
period 2012-2016. At the end of the quarter seven of our ten vessels are in
operation. We continue to focus on developing the relationship with our clients.
NAO sees opportunities to grow the Company. Acquisitions have to be accretive
for our earnings and dividends over time.
The basic features of NAO are similar to the successful structure of the NYSE
listed Nordic American Tankers Limited.
The Board has declared a dividend of $0.03 per share for 3Q2016 to shareholders
on record as of November 23, 2016. The payment of the dividend is expected to
take place on or about December 7, 2016. Since its original establishment in
late 2013, NAO has paid dividends for 11 consecutive quarters, totaling $2.57
per share, including the dividend to be paid about December 7, 2016.
The North Sea is at the present time the geographical market area for NAO.
Key points to consider:
* Earnings per share (EPS) has been: -$0.42 for 3Q2016, -$0.36 for 2Q2016 and
-$0.13 for 3Q2015.
* EPS does not take into account financial risk. i.e. the debt level of a
company.
* Operating cash flow per share has been: -$0.16 for 3Q2016, -$0.12 for
2Q2016 and $0.04 for 3Q2015.
* NAO had at the end of 3Q2016 total net debt of $127.5m for its ten vessel
fleet, or about $12.7m per vessel. The credit facility of $150m matures in
March 2020.
* NAO has a low cash breakeven level of about $11,500 per day per vessel,
including financing and G&A costs.
Financial Information
The Board has declared a cash dividend of $0.03 per share for 3Q2016 to
shareholders of record as of November 23, 2016. The payment date is on or about
December 7, 2016.
Net Loss (accountingwise) was -$8.6m in 3Q2016. In 2Q2016 and 3Q2015 the
comparable figures were -$7.4m and -$3.1m, respectively.
The Company's operating cash flow was -$3.4m in 3Q2016. In 2Q2016 and 3Q2015
operating cash flow was -$2.5m and $1.0m, respectively.
At the end of 3Q2016, net debt per NAO vessel was $12.7m. NAO has in place until
early 2020 a non-amortizing credit facility of $150m. Several service companies
in our sector are in a difficult financial position. Going forward, NAO sees
opportunities for expansion.
We concentrate on keeping our vessel operating costs low, while always
maintaining our strong commitment to safe operations. As we expand our fleet, we
do not anticipate that our administrative costs will rise correspondingly.
As reported July 18, 2016, Marianne Lie, who has a wealth of experience from the
offshore sector and from top positions in other companies, assumed position as
Executive Vice Chair of NAO. Tor Øyvind Bjørkli, the Managing Director of NAO,
is reporting to Ms. Lie. This reorganization strengthens NAO.
For further details on our financial position for 3Q2016, 2Q2016 and 3Q2015,
please see later in this release. Our 2015 Annual Report (Form 20-F) contains a
large amount of information about NAO. This report was filed with the SEC March
23, 2016 and can be found on our web site www.nao.bm.
The Fleet
Our fleet is comprised of ten high-quality PSVs. All our trading vessels operate
in the UK and in the Norwegian sectors of the North Sea. The vessels may operate
in either sector or elsewhere. The significant fuel efficiency, and
corresponding low emissions of our ships are attractive features for our
clients.
The Company's objective is to ensure spot or term employment for the fleet. The
specifications of the Company's vessels are by and large the same.
Strategy Going Forward
The main elements of NAO's strategy is based on quarterly dividends, low debt,
low G&A costs, high liquidity in the stock and full transparency. Growth of the
fleet is a central part of our strategy
Our dividend policy has the objective to achieve a competitive cash yield and a
positive Total Return[2] over time.
NAO is firmly committed to protecting its underlying earnings, dividend
potential and strong balance sheet.
We shall endeavor to safeguard and further strengthen the position in a
deliberate, predictable and transparent way.
We encourage prospective investors interested in the Offshore Supply Vessel
sector to consider buying shares in NAO.
* * * * *
Link to the graph: http://hugin.info/159489/R/2056555/770316.pdf
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," "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 PSV
market, as a result of changes in the general market conditions of the oil and
natural gas industry which influence charter hire rates and vessel values,
demand in platform supply vessels, our operating expenses, including bunker
prices, dry docking and insurance costs, governmental rules and regulations or
actions taken by regulatory authorities as well as potential liability from
pending or future litigation, general domestic and international political
conditions, potential disruption of shipping routes due to accidents or
political events, the availability of financing and refinancing, vessel
breakdowns and instances of off-hire and other important factors described from
time to time in the reports filed by the Company with the Securities and
Exchange Commission.
Contacts:
Herbjørn Hansson, Chairman Jan H. A. Moller, Head of I&R &
Nordic American Offshore Ltd. Financial Manager
Tel: +1 866 805 9504 or +47 90 14 62 91 Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or
+47 90 11 53 75
Marianne Lie, Executive Vice Chair Tor-Øyvind Bjørkli, Managing Director
Nordic American Offshore Ltd. Nordic American Offshore Ltd.
Tel.: +47 91 64 55 06 Tel: +47 90 62 70 14
Turid M. Sørensen, CFO Gary J. Wolfe
Nordic American Offshore Ltd. Seward & Kissel LLP
Tel: +47 33 42 73 00 or +47 90 57 29 27 New York, USA
Tel: +1 212 574 1223
Web-site: www.nao.bm
--------------------------------------------------------------------------------
[1] Operating cash flow is an important dimension in the industry, but it is a
non-GAAP measure. Please see later in this announcement for a reconciliation of
operating cash flow to income (loss) from vessel operations.
[2] Total Return is defined as stock price plus dividends, assuming dividends
are reinvested in the stock.
3rd Quarter 2016 Result:
http://hugin.info/159489/R/2056555/770316.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nordic American Offshore Ltd via GlobeNewswire
Datum: 14.11.2016 - 10:00 Uhr
Sprache: Deutsch
News-ID 506612
Anzahl Zeichen: 10874
contact information:
Town:
Sandefjord
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 197 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Nordic American Offshore Ltd. (NYSE:NAO) - 3Q2016 Dividend and Earnings Report"
steht unter der journalistisch-redaktionellen Verantwortung von
Nordic American Offshore Ltd (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
