FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July 2003
NORDIC AMERICAN TANKER SHIPPING LIMITED
(Translation of registrant's name into English)
Cedar House
41 Cedar Avenue
Hamilton HMEX
Bermuda
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto is a copy of an earnings and dividend release issued by
Nordic American Tanker Shipping Limited (the "Company") on July 10, 2003.
ADDITIONAL INFORMATION
BP Plc files annual reports on Form 20-F (File No. 1-6262) and periodic
reports on Form 6-K with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended.
FOR IMMEDIATE RELEASE
Nordic American Tanker Shipping Ltd. (NAT) - (AMEX: NAT) (OSE: NAT) announces
results for 2nd quarter 2003.
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As of 06/30/03 (1st and 2nd quarter 2003) NAT had an operating profit of $17.7
million as against $3.6 million during the same period last year. The net profit
for the first six months of 2003 was $16.8 million as against $2.8 million in
the same period last year. The increase in the earnings in the first six months
of 2003 compared to the same period in year 2002 is a result of tanker rates
being stronger.
Strong tanker rates and the results for the 2nd quarter of 2003 enable the
Company to pay a 3rd quarter 2003 dividend of $0.78 per share. Including the
dividend for the 3rd quarter of 2003, the total dividend paid so far in 2003 is
$2.68 per share. The total dividend paid in 2002 and 2001 were $1.35 and $3.87
per share, respectively. The 3rd quarter 2003 dividend of $0.78 will be paid on
or about August 15th to shareholders of record as of July 28th 2003. The next
dividend payment from NAT will be declared in October 2003.
Under contracts with BP Shipping, NAT achieves rates that correspond to the spot
market for modern Suezmax tankers, but not below $ 22,000 per day (T/C
equivalent), which is the agreed minimum rate with BP Shipping. The spot market
for modern Suezmax tankers in the 2nd quarter of 2003 was above the agreed
minimum rate the NAT vessels have with the charterer BP Shipping. The 2nd
quarter 2003 time charter (T/C) equivalent for the NAT vessels was $38,291 per
day compared to $57,756 in the 1st quarter of 2003 and $33,868 in the 4th
quarter of 2002.
The contracts for the NAT vessels are drawn up in a way that secures income 365
days a year for the vessels and no off-hire. The contracts with BP Shipping
commenced on October 1, 1997 and run for a minimum of 7 years and a maximum of
14 years if all options are declared.
The quarterly $ per day T/C equivalent for the NAT vessels has been as follows
since 1999:
Period 1999 2000 2001 2002 2003
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1st Quarter 22,000 26,079 51,607 22,000 57,756
2nd Quarter 22,000 33,701 35,088 22,000 38,291
3rd Quarter 22,000 48,153 28,668 22,000
4th Quarter 22,000 59,059 22,617 33,868
NAT has 9,706,606 shares in issue.
The results for the 2nd quarter of 2003 and YTD 2003 compared to the same
periods last year, are as follows:
INCOME STATEMENT INFORMATION All figures in
USD
01.01 - 06.30 01.01 - 06.30 2nd Qtr. 2nd tr.
2003 2002 2003 2002
-------------- ------------- -------- --------
Revenue 21,432,128 7,330,500 8,132,941 3,685,500
Ship Broker Commissions (91,631) (91,631) (46,069) (46,069)
Management Fee Expense (125,000) (125,000) (62,500) (62,500)
Insurance Expense (50,000) (42,000) (25,000) (21,000)
Other Expenses (85,001) (18,356) (24,964) (2,505)
Depreciation 3,415,520) (3,415,520) (1,707,760) (1,707,760)
----------- --------- --------- ---------
Net Operating Income 17,664,976 3,637,993 6,266,648 1,845,666
Financial Income 11,695 11,468 6,782 5,326
Financial Expenses (907,049) (882,348) (443,249) (451,938)
----------- --------- --------- ---------
Net Financial Items (895,354) (870,880) (436,467) (446,612)
----------- --------- --------- ---------
Net Profit 16,769,622 2,767,113 5,830,181 1,399,054
----------- --------- --------- ---------
Earnings per Share 1.73 0.29 0.60 0.14
Cash Flow per Share 2.08 0.64 0.78 0.32
The quarterly dividend paid since the commencement in 1997 has been as follows:
Period 1997 1998 1999 2000 2001 2002 2003
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1st Quarter 0.40 0.32 0.34 1.41 0.36 0.63
2nd Quarter 0.41 0.32 0.45 1.19 0.34 1.27
3rd Quarter 0.32 0.35 0.67 0.72 0.33 0.78
4th Quarter 0.30 0.30 0.36 1.10 0.55 0.32
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Total USD 0.30 1.43 1.35 2.56 3.87 1.35
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Balance sheet for Nordic American Tanker Shipping Ltd as of June 30, 2003 and
December 31, 2002 (Figures in USD)
06/30/03 12/31/02
Vessels 131,497,445 134,912,965
Current assets 4,502,489 3,388,811
Cash deposits 725,514 277,783
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Total assets 136,725,448 138,579,559
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Shareholder's equity 106,690,084 108,363,097
Long term debt 30,000,000 30,000,000
Current liabilities 35,364 216,462
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Total liabilities & equity 136,725,448 138,579,559
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At the annual general meeting of the company on May 30, 2003 is was decided to
novate the management agreement from Ugland Nordic Shipping AS to Scandic
American Shipping Ltd.
In September 2002, the Company received a letter from the Norwegian Central Tax
Office stating that the Central Tax Office had determined that the Company was
subject to Norwegian income taxation for the years 1995 through 2000.
Notwithstanding that the Company believed that it had no taxable income under
Norwegian tax principles in that period, the Company believed that the Central
Tax Office's determination was without merit and appealed the tax claim.
The Norwegian Tax Appeal Board upheld the Company's appeal of the claim of the
Norwegian Central Tax Office that the Company should be subject to Norwegian
income tax for the years 1995 to 2000. Accordingly, the tax claim was dismissed.
The Company is not currently involved in any other legal proceedings that would
have a significant effect on the Company's financial position or profitability.
Each of the company's three vessels are on firm charter to BP shipping until
September 2004. After September 2004 each charter is subject to extension at the
option of the charterer for up to seven successive one-year periods upon at
least twelve months' prior notice to the company of each such extension. The
first notice will have to be given in September 2003.
Without prejudice the Company sees the following scenarios for future employment
of the vessels:
o The charterer BP Shipping extends the existing charters for one or
more of the vessels
o The vessels are chartered to BP Shipping on new renegotiated terms and
conditions
o BP Shipping does not extend the charteres and the vessels are employed
in the spot tanker market.
o BP Shipping does not extend the charters and the company secures other
long term charteres for the vessels with other oil companies or
charterers
o BP Shipping does not extend the charters and the vessels are sold and
the net proceeds of such sale are distributed to the Shareholders of
the Company.
o A combination of the above alternatives.
In the event BP Shipping Ltd. does not extend the Company's current charters,
the Company will present to its shareholders a recommendation by the Company's
Board of Directors as to whether it believes that the sale of the Company's
vessels is in the shareholders' best interests or whether an alternative plan as
outlined above, might be of greater benefit. If BP Shipping does not extend the
charters beyond September 2004, then at least six months prior to September
2004, the Shareholdes of the Company will be entitled to vote on a proposal of
future employment or sale of the vessels presented by the Company's Board of
Directors.
July 10, 2003
Contacts: Gary J. Wolfe
Seward & Kissel, New York, USA
Tel: (1) 212-574-1223, Fax: (1) 212-480-8421 or
Scandic American Shipping Ltd
P.O Box 56
3201 Sandefjord
Norway
Tel: (47)-33-44 61 40, or +47 901 46 291,
e-mail; nat@scandicamerican.com or
Rolf Amundsen
Amundsen Partners, Oslo, Norway
Tel: + 47 908 26 906
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NORDIC AMERICAN TANKER SHIPPING LIMITED
(registrant)
Dated: July 10, 2003 By:/s/ Herbjorn Hansson
----------------------------
Herbjorn Hansson
President and
Chief Executive Officer
01318.0002 #416516