NAO maintains dividend policyCompany News // February 5, 2016
Nordic American Offshore (NAO) Ltd has issued financial statements for the fourth quarter of 2015. The company says the market for PSVs is challenging, and operating cashflow in the period was marginally negative (-US$0.1million).
"In a challenging market for PSVs, we see opportunities to grow the company," said NAO. "NAO has 10 high-quality PSVs built in Norway in the period 2012-2016. Eight of these are now in operation. Two more are under construction in Norway for delivery in April and June 2016. Our vessels have very low fuel consumption, resulting in low emissions and producing attractive transportation economics."
As announced on 25 January 2016, NAO has declared a dividend of US$0.12 per share for the fourth quarter. Since its establishment in late 2013, NAO has paid dividends for right consecutive quarters, totalling US$2.41 per share, including the dividend to be paid about February 22, 2016.
The company’s PSVs are currently employed in the North Sea. "The fall in oil prices since 3Q2014 is affecting service providers to the oil industry. In the case of PSVs, demand from new projects has been reduced, while demand from existing production facilities has not been affected as much," said NAO.
At the end of 2015, NAO had a total net debt of US$41.9 million for its eight trading ships, or about US$5.2 million per ship. US$47 million of its US$150 million credit facility was drawn. Including the recently agreed credit facility of US$150 million, NAO is fully financed up to early 2020.