Nordic American Offshore Ltd. released the following statement today:
“Nordic American Offshore Ltd (“NAO” or the “Company”) owns and operates a fleet of 10 Platform Supply Vessels (PSV) each averaging approximately 4,000 DWT in size and with an average age just over 4 years. The vessels are primarily engaged in the North Sea offshore market. We are now optimistic for the North Sea market and we have decided to activate our 3 modern vessels in lay-up after which all our vessels are active. Having an attractive fleet, with all our vessels fully operational, improved market conditions should allow for immediate improvement in our financial results.
“Results for the fourth quarter came in lower compared with third quarter 2017. The Net Operating Result was -$7.1m for 4Q2017 as compared with -$4.8m for 3Q2017. The Adjusted Net Operating Result was -$2.8m as compared to -$0.2m for 3Q2017. 4Q2017 showed an improvement on 4Q2016 of about $1.5 million.
“The basic features of NAO are similar to the business model of the NYSE listed tanker company Nordic American Tankers Limited (“NAT”). NAT holds 16.1% of NAO’s common shares. The Executive Chairman of NAO and his immediate family hold 13.4% of NAO’s commons shares.
“The Board of Directors of NAO has declared a dividend of $0.02 per share for 4Q2017 to shareholders of record as of February 23, 2018. The payment of the dividend is expected to take place on or about March 13, 2018. Since its establishment in late 2013, NAO has paid dividends for 16 consecutive quarters, totaling $2.67 per share, including the dividend to be paid March13, 2018.
“NAO pursues a conservative financial policy. At the end of 4Q2017, the net debt per vessel was $10.2 million. The Company has a waiver for certain loan covenants, which expires in April 2018 and we expect this to be extended.
“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.
“Our 2016 Annual Report (Form 20-F) contains information about NAO. This report was filed with the SEC April 24, 2017.”
Sea News, February 9