Question · Q3 2022
Craig Rose of Axiom Act Management asked if there is a specific equity percentage required by banks to finance new vessels without needing to secure a time charter. He also posited that at current high rates, NAT could potentially buy a new vessel with cash each year after becoming debt-free.
Answer
Executive Chairman Herbjørn Hansson confirmed it is possible to secure financing for new vessels without an attached time charter but declined to provide a specific equity level, citing the need to manage capital allocation carefully and avoid disclosing non-public information. Hansson agreed with the analyst's assessment that at daily rates of $50,000, buying a new vessel with cash annually would be feasible once the company is debt-free.