Nordic American Offshore Ltd. (NYSE:NAO) - 1Q2017 Dividend and Earnings Report
(Thomson Reuters ONE) -
Link to the complete 1st Quarter 2017 report:
http://hugin.info/159489/R/2100913/796446.pdf
Hamilton, Bermuda, May 2, 2017.
Nordic American Offshore closed a follow-on offering March 1, 2017,
strengthening the Company by about $48.8 million in cash. The main objectives of
the offering were to strengthen NAO financially and position NAO for further
expansion. The Executive Chairman of NAO, Herbjørn Hansson and other senior
executives subscribed for shares in the offering.
Access to financing and strong relationship with our banks have proven to be a
competitive advantage for NAO. As the stock price has fallen below $1.00, we
consider a reverse stock split, if it should turn out to be required. There is
no urgency on this matter.
During the first quarter we have had periods with higher rates not achieved in
more than a year. However, it is early to anticipate a recovery as vessels are
still in lay-up.
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 our relationship with our clients.
The basic features of NAO are similar to the successful business model of the
NYSE listed Nordic American Tankers Limited (NAT).
The Board has declared a dividend of $0.02 per share for 1Q2017 to shareholders
of record as of May 17, 2017. The payment of the dividend is expected to take
place on or about June 1, 2017. Following the offering, which strengthened NAO
significantly, and increased number of shares, the dividend to be paid out has
in effect increased. Since its original establishment in late 2013, NAO has paid
dividends for 13 consecutive quarters, totaling $2.61 per share, including the
dividend to be paid on or about June 1, 2017.
NAO sees opportunities to grow the Company. While the North Sea is at the
present time the key geographical market area for NAO, NAO may expand into other
geographical areas internationally - the potential is substantial.
Key points to consider:
* NAO completed a follow-on offering March 1, 2017, strengthening NAO with
about $48.8 million.
* Earnings per share (EPS) has been: -$0.25 for 1Q2017, -$0.48 for 4Q2016 and
-$0.30 for 1Q2016. Net Loss has been: -$8.5m for 1Q2017, -$9.8m for 4Q2016
and -$6.3m for 1Q2016.
* EPS does not take into account financial risk, i.e., the debt level of a
company. NAO had at the end of 1Q2017 total net debt of $88.7m for its ten
vessel fleet, or about $8.9m per vessel. The credit facility of $150m has
been drawn by $137m and matures in March 2020.
* Adjusted Net Operating Earnings (Loss)[1] has been: -$3.2m for 1Q2017,
-$4.3m for 4Q2016 and -$2.2m for 1Q2016.
* NAO has a low cash breakeven level of about $11,500 per day per trading
vessel, including financing and G&A costs.
Financial Information
The Board has declared a cash dividend of $0.02 per share for 1Q2017 to
shareholders of record as of May 17, 2017. The payment date is on or about June
1, 2017. NAO has about 35,000 shareholders.
Net Loss (accounting loss) was -$8.5m in 1Q2017. In 4Q2016 and 1Q2016 the
comparable figures were -$9.8m and -$6.3m, respectively.
The Company's Adjusted Net Operating Earnings (Loss) were -$3.2m in 1Q2017. In
4Q2016 and 1Q2016 Adjusting Net Operating Earnings (Loss) was -$4.3m and -$2.2m,
respectively.
At the end of 1Q2017, the net debt per vessel was $8.9m. 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 while NAO was able recently
to strengthen the Company with new equity. After the successful equity offering,
NAO has the ability to expand and we see opportunities going forward.
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.
For further details on our financial position for 1Q2017, 4Q2016 and 1Q2016,
please see later in this release. Our 2016 Annual Report (Form 20-F) contains a
large amount of information about NAO. This report was filed with the SEC April
24, 2017 and can be found on our web site www.nao.bm.
The Fleet
Our fleet is comprised of ten high-quality PSVs. All our active trading vessels
operate in the UK and in the Norwegian sectors of the North Sea. The vessels may
operate in either sector or elsewhere. We believe the significant fuel
efficiency, and corresponding low emissions of our ships are attractive
features.
The Company's objective is to ensure spot or term employment for the fleet. The
specifications of NAOs vessels are by and large the same.
Strategy Going Forward
The main elements of NAO's strategy are based on quarterly dividends, low G&A
costs, 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 NAO's 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.
* * * * *
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 Turid M. Sørensen, CFO
Nordic American Offshore Ltd. Nordic American Offshore Ltd.
Tel: +1 866 805 9504 or Tel: +47 33 42 73 00 or
+47 90 14 62 91 +47 90 57 29 27
Marianne Lie, Executive Vice Chair Gary J. Wolfe
Nordic American Offshore Ltd. Seward & Kissel LLP
Tel.: +47 91 64 55 06 New York, USA
Tel: +1 212 574 1223
Web-site: www.nao.bm
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[1] Adjusted Net Operating Earnings is an important dimension in the shipping
industry, but it is a non-GAAP measure. Please see later in this announcement
for a reconciliation of Adjusted Net Operating Earnings to Net Operating
Earnings (Loss).
[2] Total Return is defined as stock price plus dividends, assuming dividends
are reinvested in the stock.
1st Quarter 2017 Result:
http://hugin.info/159489/R/2100913/796446.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: 02.05.2017 - 12:34 Uhr
Sprache: Deutsch
News-ID 539727
Anzahl Zeichen: 11345
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