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 November 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 as Exhibit 1 is a copy of a letter to shareholders of
Nordic American Tanker Shipping Limited (the "Company") from the Chairman & CEO
of the Company dated November 29, 2005.
Exhibit 1
Nordic American Tanker Shipping Ltd. (the Company) - (NYSE:NAT) Letter to
shareholders from the Chairman & CEO
Hamilton, Bermuda, November 29, 2005
Dear Shareholder,
It is now almost 6 months since I wrote to you and as we are approaching the end
of the year, I feel it is appropriate to give you a snapshot of our progress.
Since my last letter of July 1st, I have many positive things to report. At the
end of 2004 we had four vessels. Our fleet has since increased to eight vessels,
including the most recent delivery on November 7th - a 1998-built double hull
suezmax tanker now called Nordic Saturn.
The growth of the fleet has been accretive to our dividend capacity in virtually
any market condition, enabling us to pay a higher dividend than would have been
possible before the fleet expansion.
The spot market rates for suezmax tankers were on average $24,677 per day in the
3rd quarter 2005 according to the spot assessment of the Imarex Tanker Index
which gives an indication of the level of the spot market. So far, rates have
increased strongly in the 4th quarter.
The spot market Imarex rate for suezmax tankers on November 28th stood at
$73,144. The average spot rate as reflected by Imarex was $54,295 for October
and $66,045 for November up to and including November 28th, producing an average
spot level as from October 1st and up to November 28th of $59,871. The spot
market level almost directly determines our cash flow and therefore the
calculation of the dividend.
As matters stand now, unless there are material unforeseen events, we are
confident that the 4th quarter 2005 results will be much better than the 3rd
quarter 2005 results. The 4th quarter 2005 has shown us that the supply and
demand balance in the market for crude oil carriers remains tight and this has
been reflected in the strong rates.
As a matter of policy we do not predict spot charter rates. However, in our
view, the fundamentals of our business look promising. Please note, though, that
spot charter rates are highly volatile and could rise, fall or remain at present
levels.
Our strategy is to continue to grow in a manner that is accretive to our
dividends and earnings per share. Our credit line of $300m gives us the
necessary financial flexibility to expand as opportunities arise but, as in the
past, we will consider only high quality double hull vessels.
The longer term prospects for the tanker market depend, above all, upon
developments at the macro economic level. Continued growth in the USA and
particularly in emerging economies will result in increased oil consumption.
With regard to the supply side of tanker tonnage, single hull vessels are in an
increasingly precarious situation. Because of legislative and environmental
restrictions imposed by governmental agencies, single hull vessels are expected
to be phased out over the next few years, in line with a mandatory schedule.
I would like to stress that the main objective of this Company continues to be
value creation via a transparent, predictable and clear strategic platform based
on a unique operating model.
Thank you very much for the continued interest you show in the Company and best
wishes for the Holiday Season and the New Year!
For further details on our Company, please see www.nat.bm
Sincerely,
Herbjorn Hansson
Chairman and 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," "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 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-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.
Contacts:
Scandic American Shipping Ltd
Manager for:
Nordic American Tanker Shipping Ltd.
P.O Box 56, 3201 Sandefjord, Norway
Tel: + 47 33 42 73 00 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: November 29, 2005 By: /s/ Herbjorn Hansson
---------------------------
Herbjorn Hansson
Chairman, Chief Executive Officer
and President
01318.0002 #622023