After recently announcing two six-year time charters, Nordic American Tankers Limited (NAT) gained in the pre-market. NAT values at $1.59, gaining more than 2% compared to yesterday’s closing price. The stock closed at $1.57 at the end of the last trading session. The stock volume traded in the last trading session was around 2.46 million shares. The current market cap of the company is around $303.73 million.
NAT announced two six-year Time charters
NAT is gaining in the pre-market despite any significant development in the business or any sort of important news. However, last week the company announced two 6-year time charters.
Nordic American Tankers Limited (NAT) announced in a press release on February 09, 2022, Nordic American Tankers Limited (NAT) announced that two six-year Time Charters had been completed for our two Suezmax new buildings delivered in May and June 2022.
Their delivery from the South Korean shipyard, ASYAD Shipping Company, will kick off the contracts. NAT currently has 23 ships in its fleet after selling two recently.
The agreed time charter rates will provide a steady cash stream for the next six years, totaling over USD 100 million. After operating expenditures, cash flow from these contracts will exceed 60% of the initial vessel price.
NAT CEO Dr. Ibrahim Al Nadhairi remarks
The contracts are with a reputable New York Stock Exchange-listed business, NAT. More projects between our firms may establish in the future. It is a further extension of ASYAD Shipping’s crude transportation operations. This strategic union will help Asyad maintain its top spot in shipping and logistics. It would also help Oman become a global logistics center by enhancing its operational skills.
Conclusion
The company’s stock gained in the pre-market despite any sort of important news. We can assume the link to its recently announced time charters. They expect that the new charters will bring $100 million in revenue in the upcoming six years. Investors are responding positively to the significant development in the business due to which the stock is surging in pre-market today. The company will soon announce its fourth quarter and fiscal 2021 results.
