NAO declares a dividendCompany News // November 13, 2017
The Board of Nordic Amercian offshore (NAo) has declared a dividend of US$0.02 per share for 3Q 2017 to shareholders of record as of 27 November 2017.
The payment of the dividend is expected to take place on or about 12 December 2017.
Since its establishment in late 2013, NAO has paid dividends for 15 consecutive quarters, totalling US$2.65 per share, including the dividend to be paid 12 December 2017.
The third quarter produced improved results for NAO. The net result was -$5.8 million for 3Q 2017 against -US$6.7 million for 2Q 2017.
Adjusted Net Operating Earnings (EBITDA) was -US$0.2 million compared to -US$2.4 million of the second quarter 2017.
Cashflow for 3Q 2017 of -US$0.2m is a substantial improvement year-on-year and recent quarters. In 2Q 2017 cashflow was -US$2.4 million.
NAO has 10 PSVs built in Norway in the period 2012-2016. Three of the ten vessels are currently in lay-up awaiting improved market condition.
The basic features of NAO are similar to the business model of the NYSE listed tanker company Nordic American Tankers Limited (NAT). NAT holds 16.1% of NAO common shares and the Executive Chairman of NAO and his immediate family holds 13.4% of NAO commons shares. NAO has about 35,000 shareholders.
NAO pursues a conservative financial policy. At the end of 3Q 2017, the net debt per vessel was US$9.8 million.
NAO has in place until early 2020 a non-amortizing credit facility of US$150 million.
"We concentrate on keeping our vessel operating costs low, while always maintaining our strong commitment to safe operations. We have succeeded in reducing our cost level in 2017 compared with 2016," the company said.