Nordic American Tankers Limited is a marine shipping company based in Bermuda, with its headquarters located in Hamilton, Bermuda. Founded in 1995, NAT has rapidly become one of the leading tanker companies in the world, specializing in double-hull tankers. The company has a fleet of 19 Suezmax crude oil tankers and employs 18 full time employees.
Nat is spearheaded by leader ship of company officers with many years of experience in the tanker industry. Their vast knowledge and expertise have helped NAT become a leading Marine Shipping company internationally.
The company’s headquarters in Hamilton, Bermuda, consists of an office building that houses the NAT’s 18 full time employees and is close to its other operations in the country. The website for NAT is https://www.nat.bm and customers and potential business partners can contact the office at 441 292 7202.
NAT is proud to provide the utmost quality of service in the Marine Shipping industry and is determined to ensure the safest and most efficient shipping of its customers products with its Suezmax tankers.
Nordic American Tankers Limited is performing quite well. The company’s total cash is currently at 56.62 million dollars and its EBITDA is at 160.77 million dollars. The gross margins of the company have also been performing well at 43.73%. In addition, the company has been performing well in terms of operating cash flow, with 83.86 million dollars. Lastly, its debt to equity ratio is at an impressive 51.24.
Looking at the company’s stock prices, the current price of the stock is 3.72, with a target high price at 11.00 and a target low price at 4.00. The recommendation key for the stock is “buy”, with a recommendation mean of 2.00.
The company also has a strong total revenue and revenue per share. Total revenue is at 410.91 million dollars and revenue per share is at 1.99. The revenue growth over the past year has also been quite considerable, with an impressive growth rate of 461.10%.
Lastly, some of the other important metrics that the company’s performance can be judged with are profit margins at 21.66%, operating margins at 26.89%, a return on assets at 8.16%, return on equity at 16.99%, current ratio at 0.96, quick ratio at 0.57, and free cash flow at 6.12 million dollars.
Overall, the performance of Nordic American Tankers Limited has been quite impressive, and its financials are looking very healthy. The stock is performing nicely in the market and is recommended by many analysts as a strong buy option.
However, the effects of a global recession and trade war have been felt across all sectors of the international maritime industry. The costs of shipping goods and materials slumped significantly, making it difficult for shipping companies like NATL to maintain their competitive edge. In order to keep their ships running and profits high, many shipping companies had to adopt cost-effective solutions and restructure their business operations.
At NATL, the management team saw the need to find creative ways of optimizing the efficiency of its voyages. To that end, they decided to explore leasing container ships and engaging in time-chartering, in which NATL bears the fuel and other operational costs, while a third-party covers the costs for the hire of the vessel. This allowed them to shift some of the costs to others.
Along with the time-chartering option, NATL also adopted a series of fuel-saving measures, such as the implementation of digital monitoring systems on its vessels and its tanker fleet, as well as the adoption of new & efficient propulsion engines. In addition, NATL also adopted the use of digital analytics to track and improve the efficiency of its main sea trade routes. All of these efforts translated into the company achieving good business performance despite the turbulence of the global economic downturn.
In short, through creative solutions and the adoption of smart technologies, NATL was able to navigate the turbulent waters of the economic recession unscathed and keep providing its clients with reliable and safe services. This well-timed strategy enabled NATL to remain one of the few stable and successful shipping companies in the international market.
This is exemplified in situations like high inflation, where NATL’s extensive customer base, devoted staff, and unwavering commitment to safety and security are put to the test. By taking a steady and focused approach, NATL is able to weather the changes while still providing the same level of quality service to its customers.
The NATL team remains actively aware of the constraining effects of inflation and takes all necessary steps to ensure that their operations remain cost effective. This includes shifting costs through service partnerships, fuel hedges, and long-term contracts with reliable suppliers.
An additional way that NATL mitigates the effects of inflation is through its existing corporate policies and practices that are designed to help cushion the blow of high inflation. These policies include: budgeting and forecasting, prudent debt management, careful capital expenditure, and diversification of income sources.
Overall, Nord American Tankers Limited demonstrates that it possesses the necessary financial acumen and personnel to successfully navigate the economic challenges of high inflation. With proven strategies, industry experience, and a commitment to safety and customer service, NATL is poised to remain successful in the future.
While there are plenty of advantages to investing in Nordic American Tankers Limited, there are also some risks to consider. The most prominent risk is that with the continued uncertainty of the trading environment due to the coronavirus pandemic, this could have a negative effect on NATL’s business and the stock price going forward. Another risk is that the company carries debt, in the form of $284.9M in total debt. This could potentially harm its financials if the company experiences some unexpected costs and is unable to pay back the debt in time. It should also be noted that since NATL is a maritime shipping business, it might be subject to arbitration rulings and lawsuits from clients, which could also cause the stock to experience volatility. Finally, the maritime industry in general is known to be cyclical, so it is important for investors to remain aware of this fact.
