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, 2001
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
Enclosed is unaudited financial information accompanied
by a Management's Discussion and Analysis of Financial Condition
and Result of Operations for the interim period ended
September 30, 2001.
ADDITIONAL INFORMATION
BP Amoco p.l.c., the successor company to the merger
between Amoco Corp and The British Petroleum Company p.l.c.,
files annual reports on Form 20-K and periodic reports on Form
6-K with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended.
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NORDIC AMERICAN TANKER SHIPPING LTD (NAT)
MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS AS OF
September 30, 2001
Overview
In September 1995, the Company offered and sold to the public
11,731,613 Warrants at the initial public offering price of $5.00
per Warrant. The exercise price of a Warrant was $10.21. Prior to
the Exercise Date (September 30, 1997), the Company did not have
any operations other than certain limited operations related to
the acquisition of the Vessels, of which all three were delivered
in the last half of 1997. The Company now owns three modern
double hull 150,000 dwt suezmax tankers. The Vessels were built
at Samsung Heavy Industries.
On September 30, 1997 all of the outstanding Warrants of the
Company were exercised at an exercise price of $10.21 per
Warrant. The Company received a total of $119,779,768.73 by
issuing a total of 11,731,613 new Common Shares. On November 30,
1998, the Companys shareholders approved a proposal to allow the
Company to borrow money for the purpose of repurchasing its
Shares. On December 28, 1998, the Company purchased 2,107,244
Shares through a Dutch Auction self-tender offer at a price of
$12.50 per Share. In addition, the Company paid $715,000 in
transaction costs. After the repurchase, a total of 9,706,606
Shares are in issue, down from 11,813,850 Shares. The Company
funded the repurchase with the proceeds of a long-term loan from
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a syndicate of international lenders in the total amount of
$30,000,000.
BP Shipping Ltd (the "Charterer") has agreed to charter each
Vessel for a period of seven years from September 30, 1997. Each
Charter is subject to extension at the option of the Charterer
for up to seven successive one-year periods. During the term of
each Charter (including any extension thereof) the Charterer is
obligated to pay (i) the Base Rate, which is charterhire at a
fixed minimum daily rate of $13,500 per Vessel per day (T/C
equivalent of $22,000 per day), payable quarterly in advance and
(ii) Additional Hire, to the extent spot charter rates exceed
certain levels, payable quarterly in arrears, from January 1998.
The amount of Additional Hire for each quarter, if any, will be
determined by the Brokers Panel.
On January 5, 2001 the Company received $3,645,000 in Base
Hire from the Charterer for the period from January 1 to March
31, 2001. In April 2001 the Broker Panel determined that the
Additional Hire for the period January 1 to March 31, 2001 was
$7,994,018 i.e. $29,607 per day per Vessel. The hire rate for the
1st quarter was thus $43,107 per day per vessel.
On April 2, 2001 the Company received $3,685,500 in Base Hire
from the Charterer for the period from April 1 to June 30, 2001.
In July 2001 the Broker Panel determined that the Additional Hire
for the period April 1 to June 30, 2001 was $3,572,587 i.e.
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$13,086 per day per Vessel. The hire rate for the 2nd quarter was
thus $26,586 per day per vessel.
On July 2, 2001 the Company received $3,726,000 in Base Hire from
the Charterer for the period from July 1 to September 30, 2001.
In October 2001 the Broker Panel determined that the Additional
Hire for the period June 1 to September 30, 2001 was $1,840,283
i.e. $6,668 per day per Vessel. The hire rate for the 3rd quarter
was thus $20,168 per day per vessel.
On October 1, 2001 the Company received $3,726,000 in Base Hire
from the Charterer for the period from October 1 to December 31,
2001.
Results of Operations
The Companys revenues from the Charter Hire for the period
January 1 to September 30, 2001 of $24,463,388 in total, derived
from the Base Hire of $11,056,500($13,500 per day per Vessel) and
the determined Additional Hire of $13,406,888 ($16,370 per day
per Vessel).
Net costs during the Report Period were $5,530,258 of which
nine months depreciation of the Vessels constitutes $5,123,280.
Net profit during the Report Period was $17,773,215.
Liquidity and Capital Resources
Total Assets of the Company at September 30, 2001 were
$146,380,050 compared to $160,842,504 at December 31, 2000. Cash
held at September 30, 2001 was $1,007,813.
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Dividend Payment
Based on the additional hire of $10,228,286 for the 4th
quarter 2000 and the minimum Base Hire for the 1st quarter of
2001, from January 1 to March 31, the Board of Directors declared
in January 2001 a Dividend of $13,686,337 or $1.41 per Common
Share. The dividend was paid to Shareholders in February 2001.
Based on the Additional Hire of $7,994,018 for the 1st
quarter of 2001 and the minimum Base Hire for the 2nd quarter of
2001, from April 1 to June 30, the Board of Directors declared in
April 2001 a Dividend of $11,550,861 or $1.19 per Common Share.
The dividend was paid to Shareholders in May 2001.
Based on the Additional Hire of $3,572,587 for the 2nd
quarter of 2001 and the minimum Base Hire for the 3rd quarter of
2001, from July 1 to September 30, the Board of Directors
declared in July 2001 a Dividend of $6,988,756 or $0.72 per
Common Share. The dividend was paid to Shareholders in August
2001.
Based on the Additional Hire of $1,840,283 for the 3rd
quarter of 2001 and the minimum Base Hire for the 4th quarter of
2001, from October 1 to December 31, the Board of Directors
declared in October 2001 a Dividend of $5,338,633 or $0.55 per
Common Share. The dividend will be paid to Shareholders in
November 2001.
The table below illustrates the historical development of the
Dividend per Common Share:
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PERIOD 1997 1998 1999 2000 2001
----------------------------------------------------------------
1st Quarter 0.40 0.32 0.34 1.41
2nd Quarter 0.41 0.32 0.45 1.19
3rd Quarter 0.32 0.35 0.67 0.72
4th Quarter 0.30 0.30 0.36 1.10 0.55
----------------------------------------------------------------
Total USD 0.30 1.43 1.35 2.56 3.87
----------------------------------------------------------------
* * *
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NORDIC AMERICAN TANKER SHIPPING LTD. (NAT)
INCOME STATEMENT INFORMATION
All figures in USD
1/1 - 9/30 1/1 - 9/30 3rd Qtr. 3rd Qtr. 1/1 - 12/31
2001 2000 2001 2000 2000
---------- ---------- --------- -------- -----------
Revenue 24,463,388 22,622,976 5,566,283 10,944,036 36,577,262
Ship Broker Commissions (138,207) (138,713) (46,576) (46,576) (185,288)
Management Fee Expense (187,500) (187,500) (62,500) (62,500) (250,000)
Insurance Expense (52,499) (63,750) (17,501) (21,250) (82,500)
Other Expenses (28,772) (26,550) (4,779) (16,290) (40,791)
Depreciation (5,123,280) (5,123,280) (1,707,760) (1,707,760) (6,831,040)
----------- ----------- ----------- ----------- ------------
Net Operating Income 18,933,130 17,083,183 3,727,167 9,089,660 29,187,643
Financial Income 175,500 183,384 30,632 75,177 277,552
Financial Expenses (1,335,415) (1,337,906) (448,364) (448,350) (1,796,231)
Net Financiai Items (1,159,915) (1,154,522) (417,732) (373,173) (1,518,679)
Net Profit 17,773,215 15,928,661 3,309,435 8,716,487 27,668,964
----------- ----------- ---------- ---------- ------------
Earnings per Share 1.83 1.64 0.34 0.90 2.85
Cash Flow per Share 2.36 2.17 0.52 1.07 3.55
BALANCE SHEET INFORMATION
All figures in USD
Sep. 30 Dec. 31
2001 2000
--------- ---------
ASSETS
Vessels 143,451,765 148,575,045
Prepaid Finance charges 47,055 57,915
Prepaid insurance 5,834 58,333
Accounts receivables 1,867,583 10,228,286
Cash and cash on deposit 1,007,813 1,922,925
----------- -----------
Total Assets 146,380,050 160,842,504
----------- -----------
LIABILITIES
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Other Shareholder
Equity 116,249,154 130,701,938
SHAREHOLDER'S EQUITY
9,706,606 Common Shares, 97,066 97,066
par value $.01 per share,
outstanding 50 million
authorized
Long Term Debt 30,000,000 30,000,000
Prepaid Hire 0
Accrued Interest 33,830 43,500
Total liabilities ----------- -----------
& equity 146,380,050 160,842,504
----------- -----------
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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 24, 2001 By: /s/Herbjorn Hansson
___________________
Herbjorn Hansson
President and Chief
Executive Officer
10
01318002.BA1