Slight profit dip for Nordic American Tankers

SUEZMAX specialist Nordic American Tanker Shipping made a Q2 net profit of US$20.9m, down from the Q1 figure of US$22.8m but up from the same period last year when net profit was US$14.2m.

In a statement the company said: “The spot tanker market was sound for our double hull suezmax fleet during 2Q07, enabling the Company to declare a dividend of $1.17 per share for the quarter. The Company has now declared a dividend for 40 consecutive quarters since the autumn of 1997 when our first three vessels were delivered. For the last four quarters, including the dividend to be paid for 2Q07, a total of $4.73 has been declared in dividends, which represents 13.2% of the average daily share price over the same period.”

It added: “We continue our strong focus on keeping operating costs of our vessels at a low level. Furthermore, our general and administrative costs per day per ship are at a low level compared with other listed shipping companies. However, we note the upward pressure across the shipping industry on vessel operating costs - above all related to crewing costs, lubricating oil costs and repair and maintenance costs. In addition, during the first half of 2007 increased operating costs stem from once off replenishments to onboard stocks on the three ships we took over in November/December 2006. We expect that cash operating costs during the second half of 2007 will be lower than the first half of 2007.”