The tanker market has by no means been so robust, in accordance with Herbjørn Hansson Chairman & CEO of Nordic American Tankers (NAT).

The firm, which owns and operates Suezmax tankers, is cashing in available on the market bonanza and unprecedented demand for floating storage.

Namely, large oil firms the likes of Exxon, Shell, BP and Equinor are scrambling for storage capability as demand for oil dwindles in the course of the pandemic.

However, the large oil firms are shopping for oil at report low costs and storing it as they’re hoping demand will decide up as soon as the COVID-19 lockdown measures begin to get lifted.

As such, NAT’s tankers have been in excessive demand.

Speaking to CNBC, Hansson mentioned that in the intervening time one among its Suezmaxes could be employed for $ 70,000 per day for six months and that working prices for one among its ships equal to $ eight,000 per day, leaving fairly a powerful revenue for the shipowner.

“I’ve by no means seen such a powerful market in my lifetime, and I’ve been round for fairly some time,” he mentioned, commenting available on the market scenario.

As defined by Hansson, the black swan occasion has been very worthwhile for the corporate, boosting its stability sheet and dividends tremendously.

Dividends have been a precedence for NAT, as the corporate doesn’t have a lot debt and plans to turn into debt-free once more quickly.

In March 2020, NAT mentioned that the dividend for the primary quarter of 2020 can be double the dividend of the final quarter of 2019, rising from 7 cent to 14 cent amid robust good points from the market.

Due to the robust market and the corporate’s robust monetary place, NAT additionally launched a two-year share buy-back program overlaying as much as four.5 mill NAT shares .

The publish NAT cashing in on by no means stronger tanker market appeared first on Offshore Energy.

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