UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For
the month of December 2007
Commission
File Number: 001-13944
|
NORDIC
AMERICAN TANKER SHIPPING LIMITED
|
|
(Translation
of registrant’s name into English)
|
|
LOM
Building, 27 Reid Street, Hamilton, HM 11, Bermuda
|
|
(Address
of principal executive office)
|
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F [X] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ___
Note:
Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form
6-K
if submitted solely to provide an attached annual report to security
holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)7: ___
Note:
Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form
6-K
if submitted to furnish a report or other document that the registrant foreign
private issuer must furnish and make public under the laws of the jurisdiction
in which the registrant is incorporated, domiciled or legally organized (the
registrant's "home country"), or under the rules of the home country exchange
on
which the registrant's securities are traded, as long as the report or other
document is not a press release, is not required to be and has not been
distributed to the registrant's security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission
filing on EDGAR.
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]
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a copy of a letter to shareholders from Herbjorn Hansson,
Chairman and CEO of Nordic American Tanker Shipping Limited, issued on December
7, 2007.
Exhibit
1
Nordic
American Tanker Shipping Ltd. (NAT)-(NYSE:NAT) Letter to
Shareholders from the Chairman & CEO.
Hamilton,
Bermuda, December 7, 2007
Letter
to Shareholders from the Chairman & CEO
TECHNICAL
AND COMMERCIAL OPERATIONS CONSOLIDATED – STRATEGIC CONSIDERATIONS AND
COMPETITIVE STRENGTHS AT THE END OF 2007
Dear
Shareholder,
When
the year is drawing to a close, it is right for me to send you a letter wishing
you all the best for the Holiday Season and commenting upon some pertinent
aspects of our current business. NAT now has 14 double hull environmentally
friendly suezmax tankers including two newbuildings to be delivered in 4Q09
and
1Q10.
The
market
We
had a weak third quarter whilst there were signs that a rebound in spot tanker
rates could be expected during the fourth quarter. It was no surprise to us
that
we have seen a strong increase in freight rates recently. The volatile spot
tanker market is notoriously difficult to predict. The development is
illustrated by the IMAREX index for suezmax tankers which was $17,160 per day
in
October, $29,921 per day in November and $68,013 per day up to and including
December 6. To some extent this index is an indication of the level of
the suezmax spot tanker market. In an improving market, it will take
a certain time before NAT is getting the full effect from this rate increase
as
the vessels typically have contracts for a short period forward, i.e. only
a few
weeks.
Consolidation
of technical operations
As
advised shareholders, the announced consolidation of our technical functions
has
been completed. The reputable V.Ships Norway AS is now technically managing
all
the Company’s vessels, except one which is on long term bareboat
charter.
Consolidation
of commercial operations
In
previous reports, we have laid out a plan for consolidation of our commercial
operations. Earlier our commercial functions were outsourced to pools operated
by four different companies. The last step in this plan has now been decided
–
and going forward the number of partners will be two. We shall continue
cooperating on the commercial side with Frontline Ltd (NYSE:FRO) and the private
Swedish group Stena Bulk. We have known these companies very well for years.
They are quality companies and prominent world names in the shipping industry.
We have two vessels which soon will leave the Gemini pool of OMI to join our
cooperation with Frontline Ltd and Stena Bulk in their respective pool
arrangements. Thereafter, the announced consolidation of our commercial
operations will be completed.
Strategy,
full dividend payout and predictability
The
Company has a clear and predictable strategic platform in which a full
dividend payout model is a mainstay. As a policy, we pay out all the cash
generated from operations. For 10 consecutive years the Company’s dividend yield
has been above 10%.
Low
debt
NAT
has low debt per dollar of asset value compared with many other companies.
This
will enable the Company to take aggressive expansionary steps in good markets
and also expand if the spot market and ship values should be lower.
Low
overhead expenses – an important competitive strength
Another
competitive strength of the Company is our very low overhead expenses compared
with other companies – among the lowest in the industry. It is our objective to
keep overhead expenses low – an important competitive strength in itself. Our
analyses indicate that NAT’s overhead expenses are about 50%, or in some cases
even one third of the level of other shipping companies on Wall Street; i.e.
we
have significantly lower overhead per dollar of revenue. We reckon that cash
overhead expenses should be in the region of $1,000/$1,500 per day per ship.
The
low cost base does not in any way impact negatively the top quality approach
the
Company has in all functions.
Aligned
interests – shareholders in focus – one share one vote
It
should be noted that an important objective for NAT is that the interests of
management of NAT must be aligned with the interests of shareholders in order
that NAT management has no more or less incentive to take business risks than
shareholders would wish. This clear profile gives you assurance of the security
in which you are investing. The alignment of interests will continue to guide
management to make prudent decisions on behalf of the Company.
Interests
of shareholders are in focus - all shares have the same voting rights – one
share one vote. There are no voting privileges for the Manager of NAT
or for others.
Growth
We
have come a long way since we had three ships in the autumn of 2004 – having
increased the fleet to 14 vessels now. Further accretive growth can
be expected. This means that we are working to ensure that earnings and dividend
per share after an acquisition are higher than the earnings and dividend per
share before an acquisition in the same prevailing spot market. Without
exception we will keep shareholders’ interest in focus going
forward.
Summary
I
would encourage investors to look to NAT if you wish to invest in the tanker
sector. We wish that NAT shall be priority number one for the investor in the
tanker sector. In particular, our objective is also that NAT shall be the most
attractive dividend paying security. Many shareholders contact us expressing
views and recommendations. We encourage such active involvement from our
shareholders.
For
further details on our company, please see www.nat.bm.
From
all of your friends in NAT I take this opportunity to wish each of you all
the
best for the New Year!
Sincerely,
Herbjørn
Hansson
Chairman
& Chief Executive Officer
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,”
“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 world wide 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-hire, failure on the part of a seller
to
complete a sale to us 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.
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 and Chief Executive Officer
Nordic
American Tanker Shipping Limited
Tel:
+1 866 805 9504 or + 47 901 46 291
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: December
7,
2007 By: /s/
Herbjørn Hansson
Herbjørn
Hansson
Chairman, Chief Executive
Officer and President
SK
01318 0002 836675