Nordic American Announces 113th Consecutive Dividend
Crude oil prices may be on a sustained downward trend, but that doesn’t mean all energy plays are taking a hit. In fact, demand for oil globally remains robust, and that’s a good thing for midstream oil and gas shipping companies.
Moreover, oil traders and shipping companies are scrambling to find additional vessels and capacity in order to accommodate what is expected to be huge demand for Venezuelan oil. Washington is looking to take delivery of sanctioned oil following the removal of President Nicolás Maduro.
Before U.S. sanctions, Venezuela was exporting approximately 500,000 barrels per day to the U.S. It could take upwards of four months to ship the accumulated crude inventories sitting in Venezuela.
This anticipated increase in crude has helped juice midstream shipping stocks, including Nordic American Tanker Ltd (NYSE:NAT).
Nordic American Tanker Ltd stock has actually been doing well since the start of 2022, rising 254%. More recently, NAT stock has been performing well since early April 2025.
Stocks in general took a beating after President Donald Trump unveiled his global tariff policies. Concerns about how tariffs would impact the U.S. economy spooked investors. Those fears were assuaged, with stocks and investor optimism turning rather quickly. Midstream shipping stocks also got a boost after it was reported in mid-January that shipping firms were looking for ways to expand capacity for Venezuelan oil transfers.
Nordic American Tanker has seen its stock rise 54% on an annual basis and 18% since the start of January. NAT stock is also up:
- 8% over the last five days
- 32% over the last three months
- 60% over the last six months
Currently trading hands at $4.06 per share, NAT stock is at its highest levels since April 2020.
Chart courtesy of StockCharts.com
About Nordic American Tanker Ltd
Bermuda-based Nordic American Tanker acquires and charters double-hull tankers. It currently operates a fleet of 20 Suezmax crude oil tankers, with a cargo lifting capacity of one million barrels of oil each. The majority of its vessels are in the spot market. (Source: “Overview,” Nordic American Tankers Ltd, last accessed January 14, 2025.)
During the first half of 2025, Nordic American Tanker sold two vessels built in 2003 and 2004 and acquired two vessels built in 2016. In December 2025, it entered an agreement to sell two older Suezmax tankers and an agreement to have two newbuilds constructed and set for delivery in the second half of 2028. (Source: “Nordic American Tankers Ltd (NYSE: NAT) – Sale of two Suezmax tankers and contracting of two newbuildings,” Nordic American Tanker Ltd, December 18, 2025.)
Another Strong Quarter
For the third quarter ended September 30, 2025, Nordic American Tanker reported net voyage revenue of $45.6 million, down from $52.0 million in the same prior year period. (Source: “Report as per September 30, 2025 – Increased,” U.S. Securities Exchange Commission, November 28, 2025.)
It reported a third-quarter net loss of $2.8 million and ended the period with a strong liquidity position of more than $70.0 million. Despite a net loss, Nordic American reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $21.4 million.
The average time charter equivalent (TCE) for the company’s fleet came in at $27,490 per day, per ship. Operating costs were $9,000 per day, per vessel.
During a typically slow third quarter, rates held up well compared to the second quarter. Management said the fourth quarter started out well, leaving solid room for cash accumulation.
113th Consecutive Dividend
Dividends are an important part of who Nordic American Tanker is. In its financial results, the company stated that “whatever we do, dividends remain an important objective.”
Its policy is to declare quarterly dividends to shareholders, based on its net operating cash flow during the previous quarter. This results in a variable quarterly dividend.
In the third quarter, Nordic American raised its dividend payout to $0.13 per share, or $0.36 per share, for a current forward dividend yield of roughly nine percent.
The Lowdown on Nordic American Tanker Ltd
Nordic American Tanker Ltd is an oil and gas midstream company that owns one of the largest fleets of Suezmax tankers in the world, holding long-term contracts with major oil companies.
It has been expanding its fleet and is, it claims, in a strong position and one of the most active periods in years. This is due in part to the fact that the available shipyard capacity for large oil tankers is low, leaving limited capacity to build additional Suezmax tankers over the next few years.
This should result in Nordic American continuing to offer income investors one of the best dividend policies in the midstream sector.