Magnus Fyhr's questions to NORDIC AMERICAN TANKERS (NAT) leadership • Q4 2016
Question
Magnus Fyhr from Seaport Global Securities LLC inquired about the financing plans for the upcoming newbuild vessels. He also asked for the rationale behind focusing exclusively on the Suezmax market versus VLCCs and questioned how the dividend might be addressed if market rates remained challenging.
Answer
Chairman & CEO Herbjørn Hansson explained that the next newbuild would be paid for with cash on hand, while future financing would depend on market conditions but would maintain a low level of debt. He defended the Suezmax focus by highlighting the lower risk profile compared to VLCCs and the operational advantages of a homogenous fleet. He reiterated that the dividend is a priority, but the amount is subject to future market performance.