SOURCE: Nordic American Tanker Shipping Ltd.

Nordic American Tanker Shipping Ltd.

March 23, 2010 05:08 ET

Nordic American Tanker Shipping Ltd. ("the Company") (NYSE: NAT) Consolidation of Commercial Operations

HAMILTON, BERMUDA--(Marketwire - March 23, 2010) - The Company today announced that it has decided to place all its vessels in the Gemini Suezmax cooperation. So far, the NAT vessels have been in two cooperative arrangements.

Frontline and Teekay -- also world reputed tanker companies -- are among other key members of the Gemini arrangement.

Herbjorn Hansson, the Company's Chairman & CEO, stated: "Our vessels will trade in the spot market as in the past and this consolidation of our commercial operations does not mean any deviation from our simple and transparent operational model with a full dividend payout policy and a strong balance sheet as key features. Our objective is to place all our ships with Gemini, including the two 2010 built Suezmaxes scheduled to be delivered later this year. Following the delivery of these two new buildings, our fleet will consist of 18 double hull Suezmax vessels if no acquisitions have taken place in the meantime. We are very pleased to strengthen our participation in Gemini -- a cost effective move to enhance operational and commercial efficiency which will contribute to a further consolidation in the tanker industry".

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.

Press release (PDF): http://hugin.info/201/R/1396507/352797.pdf

Contact Information

  • Contacts:
    Scandic American Shipping Ltd.
    Manager for:
    Nordic American Tanker Shipping Limited
    P.O. Box 56, 3201 Sandefjord, Norway
    Tel: + 47 33 42 73 00 E-mail: nat@scandicamerican.com

    Rolf Amundsen, Investor Relations
    Nordic American Tanker Shipping Limited
    Tel: +1 800 601 9079 or + 47 908 26 906

    Gary J. Wolfe
    Seward & Kissel LLP, New York, USA
    Tel: +1 212 574 1223

    Turid M. Sørensen, CFO
    Nordic American Tanker Shipping Limited
    Tel: + 47 33 42 73 00 or + 47 905 72 927

    Herbjørn Hansson, Chairman & CEO
    Nordic American Tanker Shipping Limited
    Tel: +1 866 805 9504 or + 47 901 46 291