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 October 2005
NORDIC AMERICAN TANKER SHIPPING LIMITED
(Translation of registrant's name into English)
Reid House
31 Church Street
Hamilton HM FX
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 Management's Discussion and Analysis of
Financial Condition and Results of Operations and unaudited condensed interim
financial statements of Nordic American Tanker Shipping Limited (the "Company")
for the six months ended June 30, 2005. The information furnished in this report
is deemed to be incorporated by reference into the registration statement on
Form F-3 relating to the Company's Dividend Reinvestment and a Direct Stock
Purchase Plan filed on September 27, 2005 (No. 333-128606).
Management's Discussion and Analysis of Financial Condition and Results
of Operations for the Six Months Ended June 30, 2005
General
Nordic American Tanker Shipping Limited (the "Company," "we," "us" or
"our") is an international tanker company that, as of June 30, 2005, owned six
modern double-hull Suezmax tankers averaging approximately 151,000 dwt each. We
were formed in June 1995 for the purpose of acquiring and chartering three
Suezmax tankers that were built in 1997. These three vessels were bareboat
chartered to BP Shipping Ltd. ("BP Shipping"), for a period of seven years. BP
Shipping redelivered these three vessels to us in September 2004, October 2004
and November 2004, respectively. We have continued our relationship with BP
Shipping by time chartering to it the first two tankers, at spot market related
rates, for three-year terms. We have bareboat chartered the third of our
original three vessels to Gulf Navigation Company LLC ("Gulf Navigation") of
Dubai, U.A.E. for a term of five years at a fixed rate of charterhire, subject
to two one-year extensions at Gulf Navigation's option.
In November 2004, we acquired our fourth vessel, a 1997 built double-hull
Suezmax tanker. The fifth vessel, a double-hull Suezmax tanker built in 1998,
was acquired in March 2005. Our sixth vessel, a double-hull Suezmax tanker built
in 2005, was also acquired in March 2005. We are currently operating these
vessels in the spot market.
In June 2005, we agreed to acquire our seventh double-hull Suezmax tanker,
built in 1998, from an unrelated third party. We took delivery of our seventh
vessel in early August 2005. The vessel is employed in the spot market.
Subsequent to June 30, 2005, we agreed to acquire our eighth double-hull
Suezmax, built in 1998, from an unrelated third party. We expect to take
delivery of our eighth vessel in mid-November 2005. We plan to deploy this
vessel in the spot market or on spot market related time charters over the near
term.
Bareboat Charters
We have chartered one of our vessels under a bareboat charter to Gulf
Navigation for a period of five years, terminating in the fourth quarter of
2009, subject to two one-year extensions at Gulf Navigation's option. Under the
terms of the bareboat charter, Gulf Navigation is obligated to pay a fixed
charterhire of $17,325 per day for the entire period. During the charter period,
Gulf Navigation will generally be responsible for operating and maintaining the
vessel and will bear all costs and expenses with respect to the vessel.
Time Charters
We have chartered two of our vessels under spot market-related time
charters to BP Shipping for a period of three years each, terminating between
September 1 and October 31, 2007. The amount of charterhire payable under the
charters to BP Shipping is based on a formula designed to generate earnings to
us as if we had operated the vessels in the spot market on two routes used for
the calculation, less 5%. Under the charter BP Shipping is responsible for all
voyage costs while we are responsible for providing the crew and paying
operating costs.
Spot Charters
For the six month period ended June 30, 2005, three of our vessels were
employed in the spot market. Subsequent to June 30, 2005, our seventh vessel was
deployed in the spot market and we plan to deploy our eighth vessel in the spot
market or on spot related time charters over the near term or in a pool of
vessels employed in the spot market. Tankers operating in the spot market
typically are chartered on a single voyage which may last up to several weeks.
Tankers operating in the spot market may generate increased profit margins
during improvements in the tanker rates, while tankers operating fixed-rate time
charters generally provide more predictable cash flows. Under a typical voyage
charter in the spot market, we will be paid freight on the basis of moving cargo
from a loading port to a discharge port. We will be responsible for paying both
operating costs and voyage costs and the charterer will be responsible for any
delay at the loading or discharging ports.
Operating Results
For the six month period ended June 30, 2005, our only source of income was
from the six vessels we owned during that period, which included four vessels
owned during the entire period and two vessels we acquired in March 2005. Of
these six vessels, three vessels operated in the spot market, two vessels on
time charter contracts with spot related rates and one vessel on bareboat
charter at a fixed charterhire rate.
We present our income statement using voyage revenues and voyage expenses.
Our vessels are operated under bareboat charters, spot related time charters and
spot charters. Under a bareboat charter the charterer pays substantially all of
the vessel voyage and operating costs. Under a spot related time charter, the
charterer pays substantially all of the vessel voyage costs and the vessel owner
pays the operating costs. Under a spot charter, the vessel owner pays all vessel
voyage and operating costs. Vessel voyage costs consist primarily of fuel, port
charges and commissions. Operating costs consist primarily of vessel
maintenance, crewing, regulatory compliance and insurance.
Since the amount of voyage expenses that we incur for a charter depends on
the type of the charter, we use net voyage revenues to provide comparability
among the different types of charters. Net voyage revenue, a non-GAAP financial
measure, provides more meaningful disclosure than voyage revenues, the most
directly comparable financial measure under accounting principles generally
accepted in the United States ("US GAAP"). Net voyage revenues divided by the
number of days on the charter provides the Time Charter Equivalent ("TCE") Rate.
For bareboat charters operating costs must be added in order to calculate TCE
rates. Net voyage revenues and TCE rates are widely used by investors and
analysts in the tanker shipping industry for comparing the financial performance
of companies and for preparing industry averages. The following table reconciles
our net voyage revenues to voyage revenues.
All figures in USD Six Months Ended June 30,
2005 2004
----------------------------------------------------------
Voyage Revenue 46,525,043 26,901,886
Voyage Expenses (12,371,783) (92,138)
----------------------------------------------------------
Net Voyage Revenue 34,153,260 26,809,748
----------------------------------------------------------
Our voyage revenues increased 72.3% to $46,525,043 for the six month ended
June 30, 2005, from $26,901,886 for the six month ended June 30, 2004. Net
voyage revenues increased 27.4% to $34,153,260 for the six month ended June 30,
2005, from $26,809,748 for the comparable period in 2004. The increase in voyage
revenues was primarily a result of us becoming an operating company which
entails employing the vessels in the tanker market on spot related rates, which
were higher than the fixed charterhire received under the bareboat charters that
our three vessels operated under during the first six months of 2004. In
addition, we owned six vessels as of June 30, 2005, compared to three vessels as
of June 30, 2004. Five of the six vessels operate in the spot market where we
are responsible for paying voyage expenses. During the first six months of 2004
we operated the three vessels owned at that time on bareboat charter. Under
bareboat charter agreements all voyage expenses are paid by the charterer. The
average TCE for the first six months of 2005 was $40,159 per day per vessel
compared to $57,766 per day per vessel for the comparable period in 2004. The
tanker spot market rates and TCEs are determined by, among other things, the
demand for the carriage of oil and the distance the oil is to be carried,
measured in tonne miles, and the supply of vessels to transport that oil.
Vessel operating expenses were $4,498,065 for the six months ended June 30,
2005. We did not have vessel operating expenses for the comparable period in
2004 as the vessels owned at that time were chartered to BP Shipping under
bareboat charter agreements. Under bareboat charter agreements all vessel
operating expenses are paid by the charterer.
Administrative expenses were $5,773,531 for the six months ended June 30,
2005 compared to $715,093 for the comparable period in 2004, an increase of
707%. The increase is primarily due to share-based compensation expense of
$3,582,995 related to issuance of additional shares issued to the Manager,
Scandic American Shipping Ltd. in order to bring the Manager's share of total
outstanding shares after the share issuance in March 2005 up to 2%. Our
management agreement gives the Manager the right to purchase 2% of outstanding
shares at a par value of $0.01. We also recorded $594,775 of share-based
compensation expense related to 270,000 options granted in February 2005. Other
administrative costs have increased as a result of our transition to an
operating company. Chartering vessels on spot charters and time charters
requires more active management of our day-to-day business. In 2004, we engaged
the Manager to assume the commercial and operational responsibility of our
vessels and to manage our day-to-day business. In addition to the share-based
compensation described above, we reimburse the Manager for administrative
expenses and pay the Manager a fixed fee of $100,000. Until June 30, 2004, we
paid an annual fixed fee of $250,000 for these services.
Depreciation expense increased 101.7% to $6,890,149 for the six months
ended June 30, 2005, from $3,415,520 for the six month ended June 30, 2004. We
own six vessels as of June 30, 2005, which are being depreciated compared to
three vessels as of June 30, 2004. The three vessels acquired since June 30,
2004 were delivered to us in mid-November 2004, mid March 2005 and late March
2005 respectively.
Net financial items decreased to ($94,927) for the six months ended June
30, 2005, compared to ($854,646) for the comparable period in 2004, a decrease
of 88.9%. The decrease is primarily due to the repayment of our $30 million long
term debt in November 2004 as well as the expiration of the interest swap
agreement in December 2004. The $30 million long term debt and the interest rate
swap were outstanding during the first six months of 2004.
Liquidity and Capital Resources
Cash flows provided by operating activities decreased 17.5% for the six
months ended June 30, 2005 to $22,911,012 compared to $27,779,392 for the same
period in 2004 due primarily to the lower tanker spot market rates during the
first six months of 2005 than during the comparable period in 2004.
Cash flows used by investing activities were $156,989,153, which represents
the acquisition costs for the two vessels acquired in March 2005 and the down
payment for the vessel we agreed to acquire in June 2005. There were no
investing activities for the comparable period of 2004.
Cash flows provided by financing activities for the six months ended June
30, 2005 increased to $121,656,298 compared to ($27,664,019) for the same period
in 2004 due to proceeds from sale of common stock of $161,967,525 in connection
with the follow-on offering in March 2005 partially offset by an increase in
dividends paid of $12,647,208 during the six months ended June 30, 2005.
In June 2005, we entered into an agreement to acquire a double-hull Suezmax
tanker built in 1998 from an unrelated third party for the purchase price of
$71.4 million. In accordance with the agreement, we paid ten percent of the
purchase price as security for the asset and the remaining ninety percent was
paid in August 2005, subsequent to the delivery of the vessel.
For the six month period ended June 30, 2005, we had a credit facility,
which we entered into in October 2004, that consisted of a $50 million revolving
credit facility and a $250 million revolving credit facility. The $50 million
facility was set to mature in October 2007 and the $250 million facility was set
to mature in October 2005. Amounts borrowed under the credit facility bore
interest at a rate equal to LIBOR plus a margin between 0.8% and 1.2% (depending
on the loan to vessel value ratio).
Subsequent to June 30, 2005, we borrowed $60.0 million in September 2005
under the credit facility that we entered into in October 2004, to finance part
of the purchase price of our seventh vessel that we acquired in August 2005, and
$7.0 million to finance the down payment for the acquisition of the eighth
vessel that is expected to be delivered in mid-November 2005.
Subsequent to June 30, 2005, we entered into a new $300 million revolving
credit facility, which we refer to as the New Credit Facility, in September
2005. The New Credit Facility is effective as of October 2005. The New Credit
Facility will mature in September 2010. The New Credit Facility replaces our
existing credit facility from October 2004, a portion of which was set to mature
in October 2005. The New Credit Facility will provide funding for future vessel
acquisitions and general corporate purposes. The New Credit Facility cannot be
reduced by the lender and there is no repayment obligation during the five year
term. Amounts borrowed under the New Credit Facility bear interest at a rate
equal to LIBOR plus a margin between 0.7% and 1.2% (depending on the loan to
vessel value ratio). We must pay a commitment fee of 30% of the applicable
margin on any undrawn amounts.
Please read this MD&A in connection with the MD&A filed in the Annual
Report on Form 20-F for the fiscal year ended December 31, 2004.
CONDENSED BALANCE SHEET INFORMATION (unaudited)
All figures in USD
Jun. 30 Dec. 31
2005 2004
------------------------------------------ ---------------- ---------------
ASSETS
Current Assets
Cash and Cash Equivalents 18,310,673 30,732,516
Accounts Receivable 787,052 4,539,354
Other Receivables 5,231,422 -
Prepaid Finance Costs and Insurance 734,119 1,479,710
Prepaid to Vessel Managers 2,705,892 -
---------------- ---------------
Total Current Assets 27,769,158 36,751,580
---------------- ---------------
Long-term Assets
Vessels 330,261,224 187,301,038
Deposit on Vessel Acquisition 7,140,000 -
Other Long-term Assets 516,255 150,793
---------------- ---------------
Total Assets 365,686,637 224,203,411
---------------- ---------------
LIABILITIES AND SHAREHOLDERS" EQUITY
Current liabilities
Accounts Payable 312,758 411,366
Deferred Revenue 537,049 1,286,070
Accrued Liabilities 237,788 637,582
---------------- ---------------
Total Current Liabilities 1,087,595 2,335,023
---------------- ---------------
SHAREHOLDERS' EQUITY
Common Shares, 166,445 130,678
par value $.01 per share,
issued and outstanding (51.2 million
shares authorized; 16,644,496
issued and outstanding)
Additional Paid-in Capital 431,862,102 265,752,581
Accumulated Other Comprehensive Income - -
Accumulated Deficit (67,429,505) (44,014,866)
---------------- ---------------
Total Shareholders' Equity 364,599,042 221,868,393
---------------- ---------------
Total Liabilities & Shareholders' Equity 365,686,637 224,203,411
---------------- ---------------
The accompanying notes are an integral part of the condensed financial
statements
CONDENSED STATEMENT OF OPERATIONS (unaudited)
All figures in USD
Six Months Ended June 30,
2005 2004
--------------------------------------------- ---------------- ---------------
Voyage Revenue 46,525,043 26,901,886
Voyage Expenses (12,371,783) (92,138)
Vessel Operating Expenses (4,498,065) -
Administrative Expenses (5,773,531) (715,093)
Depreciation (6,890,149) (3,415,520)
------------------ --------------
Net Operating Income 16,991,515 22,679,135
------------------ --------------
Net Financial Items (94,927) (854,646)
------------------ --------------
Net Profits 16,896,588 21,824,489
------------------ --------------
Basic and Diluted Earnings per Share (94,927) (854,646)
Average Number of Outstanding Shares 15,339,877 9,706,606
CONDENSED STATEMENT OF CASH FLOWS (unaudited)
All figures in USD Six Months Ended June 30,
2005 2004
Net Profit 16,896,588 21,824,489
Reconciliation of Net profit to Net Chas from
Operating Activities
Depreciation 6,890,149 3,415,520
Share Based Compensation & Stock Option Plan 4,177,769 -
Increase (Decrease) in Receivables and Payables (5,053,494) 2,539,383
----------------- -------------
Net Cash from Operating Activities 22,911,912 27,779,392
----------------- -------------
INVESTING ACTIVITIES
Investment in Vessels (149,849,153) -
Deposit on Vessel (7,140,000) -
----------------- -----------
Net Cash used by Investment Activities (156,989,153) -
----------------- -----------
FINANCING ACTIVITIES
Financing Activities
Proceeds from Sales of Common Stock 161,967,525 -
Proceeds from use of Credit Facility 5,000,000 -
Repayments on Credit Facility (5,000,000) -
Dividends Paid (40,311,227) (27,664,019)
----------------- --------------
Net Chas From (used for) Financing Activities
121,656,298 (27,664,019)
--------------- -------------
Net Increase in Cash and Cash Equivalents (12,421,843) 115,373
------------------ -------------
Beginning Cash and Cash Equivalents 30,732,516 565,924
------------------ -------------
Ending Cash and Cash Equivalents 18,310,673 681,297
------------------ -------------
The accompanying notes are an integral part of the condensed financial
statements
NORDIC AMERICAN TANKER SHIPPING LIMITED
Notes to the Condensed Financial Statements
1. INTERIM FINANCIAL DATA
The unaudited condensed interim financial statements for Nordic American
Tanker Shipping Limited (the "Company") have been prepared on the same basis as
the Company's audited financial statements and, in the opinion of management,
include all material adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of the financial position and results of
operations in accordance with accounting principles generally accepted in the
United States ("US GAAP"). The accompanying financial statements should be read
in conjunction with the annual financial statements and notes included in the
Annual Report on Form 20-F for the year ended December 31, 2004.
Revenue Recognition:
Bareboat charters - The accounting policy and method of computation used in
recording bareboat charter revenues is consistent with those followed in
preparing the Company's annual financial statements for the year ended December
31, 2004.
Spot market - Under a voyage charter the revenues and associated voyage
costs, such as fuel, canal tolls and port charges are recognized ratably over
the estimated duration of the voyage (the percentage of completion method of
accounting). Estimated losses under a voyage charter are provided for in full at
the time such losses become evident. The Company's accounting policy for
recognition of voyage freight for vessels operating on voyage charters is on the
discharge-to-discharge basis. Under this method, voyage revenue is recognized
evenly over the period from the departure of a vessel from its original
discharge port to departure from the next discharge port.
Demurrage income, included in voyage revenue, represents payments by the
charterer to the vessel owner when loading and discharging time exceed the
stipulated time in the voyage charter. Demurrage income is measured in
accordance with the provisions of the respective charter agreements and the
circumstances under which demurrage claims arise and is also recognized ratably
over the estimated duration of the voyage to which it pertains. The consolidated
balance sheets reflect the deferred portion of revenues and expenses, which will
be earned in subsequent periods.
As of June 30, 2005 other receivables represents unbilled receivables of
$5,231,422 that occurred during the final month of the respective quarter. The
Company did not have unbilled receivables for the comparable period in 2004.
2. RELATED PARTY TRANSACTIONS
The Company entered into a management agreement with Scandic American
Shipping Ltd. ("SAS"). SAS is owned by the Chairman and CEO of the Company Mr.
Herbjorn Hansson and the Board Member, Mr. Andreas Ove Ugland. SAS has assumed
commercial and operational responsibility of the Company's vessels and is
required to manage the Company's day-to-day business subject, always, to the
Company's objectives and policies as established from time to time by the Board
of Directors. For its services under the management agreement, SAS is entitled
to the cost incurred plus a management fee equal to $100,000 per annum. The
Manager also has a right to own 2% of the Company's total outstanding shares
under conditions as described under Note 6. As of June 30, 2005, SAS owns 2.0%
of the Company's shares. The management agreement expires in 2019.
3. LONG-TERM DEBT
In October 2004 the Company entered into the Credit Facility, which
consists of a $50 million revolving credit facility and a $250 million revolving
credit facility. The $50 million facility will mature in October 2007 and the
$250 million facility will mature in October 2005, unless the Company exercises
the one-year extension option or the option to convert any drawn amounts to a
five-year term loan. Amounts borrowed under the Credit Facility will bear
interest at a rate equal to LIBOR plus a margin between 0.80% to 1.20% per year.
4. SHAREHOLDERS EQUITY
Par value of the Company's common shares is $0.01. At June 30, 2005 the
number of shares issued and outstanding was 16,644,496.
June 30, 2005
--------------------------------------------------------------------------------
Number of shares Shareholders'
equity
--------------------------------------------------------------------------------
At January 1, 2005 13,067,838 $221,868,387
Common shares issued (net of offering costs) 3,500,000 161,967,525
Share-based compensation- Manager agreement 76,658 3,582,995
Share-based compensation - stock options 594,774
Net profit 16,896,588
Dividend declared and paid (40,311,227)
--------------------------------------------------------------------------------
At June 30, 2005 16,644,496 $364,599,042
--------------------------------------------------------------------------------
5. COMPREHENSIVE INCOME Six Months Ended June 30,
------------------------------
2005 2004
--------------------------------------------------------------------------------
Net Profit $16,896,588 $21,824,489
Cash flow hedge:
-Unrealized gain on cash flow hedge instrument - 23,388
-Reclassification adjustment - 630,612
--------------------------------------------------------------------------------
Comprehensive income $16,896,588 $22,478,489
--------------------------------------------------------------------------------
6. SHARE-BASED COMPENSATION
The Company's management agreement formerly provided that SAS would receive
1.25% of any gross charterhire paid to the Company. In order to further align
SAS interests with those of the Company, the parties agreed to amend the
management agreement on October 12, 2004. Under the amended agreement, SAS has
the right to acquire two percent of the Company's outstanding shares at the par
value of $0.01. When the Company issues additional common shares, SAS will be
able to purchase additional common shares at par value, $0.01, to maintain its
ownership of 2% of the Company's total outstanding common shares. These
restricted shares are non-transferable for three years from the date of
issuance.
In connection with the share offering in March 2005, the Company issued an
additional 76,658 shares to the manager for a total consideration of $767, or
the par value of the shares. The Company recorded share-based compensation
expense of $3,582,995 related to the issuance of the shares.
In October 2004, the Board of Directors approved a stock incentive plan which
authorized the granting of options for the issuance of 400,000 shares of common
stock. On February 10, 2005, the Company granted options to Board members and
employees of the Company.
------------------------------------------------------------------------------
Number of shares Weighted average
exercise price
Options outstanding on January 1, 2005 - -
Options granted 190,000 $38.75
Options cancelled - -
Options exercised - -
Options outstanding at June 30, 2005 190,000 $38.75
Options exercisable at June 30, 2005 - -
-----------------------------------------------------------------------------
The options have a graded vesting schedule over a period of 3.8 years. The
exercise price is subject to an annual downward adjustment if the payment of
dividends for specified 12 month period exceeds 3% of the exercise price.
The Company also granted 80,000 options to two SAS employees, with an option
exercise price of $38.75 on February 10. The options have a graded vesting
schedule over a period of 3.8- 4 years. The exercise price will be reduced by
amount of dividends paid in excess of 3% over each specified 12 month period.
The company recorded a share-based compensation expense related to the options
granted of $594,775 under the fair value method of accounting for stock options.
7. SUBSEQUENT EVENTS
In June 2005, the Company entered into an agreement to acquire an
additional 1998 built double-hull Suezmax tanker for a purchase price of $71.4
million of which $7,140,000 was paid in June 2005 representing 10% deposit of
the agreed purchase price. The Company took delivery of the new vessel in early
August 2005. The vessel is employed in the spot market.
In September, the Company agreed to acquire an additional double hull
Suezmax vessel built in 1998 for $70 million. The vessel is expected to be
delivered from the seller to the Company in mid-November 2005. The Company
expects to employ the vessel in the spot market or on spot market related time
charters.
In September 2005, the Company entered into a new $300 million revolving
credit facility, which is referred to as the New Credit Facility. The New Credit
Facility is effective as of October 2005. The New Credit Facility will mature in
September 2010. The New Credit Facility replaces its credit facility from
October 2004, a portion of which was set to mature in October 2005. The New
Credit Facility will provide funding for future vessel acquisitions and general
corporate purposes. The New Credit Facility cannot be reduced by the lender and
there is no repayment obligation during the five year term. Amounts borrowed
under the New Credit Facility bear interest at a rate equal to LIBOR plus a
margin between 0.7% and 1.2% (depending on the loan to vessel value ratio). The
Company must pay a commitment fee of 30% of the applicable margin on any undrawn
amounts.
In September 2005, the Company borrowed $60.0 million under its credit facility
from October 2004 to finance part of the purchase price of its seventh vessel
that it acquired in August 2005, and $7.0 million to finance the down payment
for the acquisition of the additional vessel that is expected to be delivered in
mid-November 2005. Amounts borrowed under the Company's existing credit facility
bear interest at a rate equal to LIBOR plus a margin between 0.8% and 1.2%
(depending on the loan to value ratio).
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," "except," "anticipate," "intends," "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.
In addition to these important factors, other 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 and other important factors described from time to time in
the reports filed by the Company with the Securities and Exchange Commission,
including our Annual Report on Form 20-F.
Contacts:
Scandic American Shipping Ltd
Manager for
Nordic American Tanker Shipping Ltd.
P.O Box 56
3201 Sandefjord, Norway
E-mail: nat@scandicamerican.com
Web site: www.nat.bm
Rolf Amundsen
Chief Financial Officer
Nordic American Tanker Shipping Ltd.
Tel: +1 800 601 9079 or + 47 908 26 906
Herbjorn Hansson
Chairman & CEO
Nordic American Tanker Shipping Ltd.
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: October 14, 2005 By: /s/ Herbjorn Hansson
----------------------------
Herbjorn Hansson
President and
Chief Executive Officer