Friday, crude oil tankers operator Nordic American Tanker Shipping Ltd. (NAT) reported a loss for the second quarter, compared with a profit in the last year, reflecting significantly lower voyage revenues and higher vessel operating costs, amid a highly volatile suezmax tanker market.
For the quarter, net loss was $0.14 million or breakeven per share, compared with a net income of $35.55 million or $1.10 per share in the year-ago quarter.
Net voyage revenue for the quarter declined to $29.75 million from $63.25 million in the prior-year quarter.
Income from vessel operations plunged to $55 thousand from $36.14 million a year earlier, as vessell operating costs increased to $10.73 million from $9.3 million a year earlier.
In July, the company took delivery of a 2002 built double hull suezmax tanker, thereby increasing the fleet to 16 vessels, including two newbuildings to be delivered. These are expected to increase earnings and dividend capacity by about 23% compared with the 13 vessel fleet as at the end of last quarter, said the company.
For the six-month period, net income plunged to $17.07 million or $0.44 per share from $58.96 million or $1.90 per share in the previous year. Year-to-date, net voyage revenue was $74.05 million, down from $110.12 million last year.
Further, the company declared a quarterly dividend of $0.50 per share, which is payable on or about September 4, to shareholders of record as of August 21, 2009.
Looking ahead, the company said, while the recession is reducing the demand for transportation capacity, the demand side for tankers to some extent continues to be helped positively by the use of tankers for storage.
Meanwhile, on the supply side, the company expects the current financial upheaval may delay deliveries of new buildings and may also lead to the cancellation of new building orders.
NAT is closed Thursday's regular trading at $30.83 on the NYSE.
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