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 2002
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
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INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto is a copy of the quarterly report of Nordic American
Tanker Shipping Limited (the "Company") for the period ended June 30, 2002.
ADDITIONAL INFORMATION
BP Amoco 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.
NORDIC AMERICAN TANKER SHIPPING LTD (NAT)
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS AS OF
June 30, 2002
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 Company's 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 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 2, 2002 the Company received $3,645,000 in Base Hire from
the Charterer for the period from January 1 to March 31, 2002. In April 2002
the Broker Panel determined that there would be no Additional Hire for the
period January 1 to March 31, 2002.
On April 2, 2002 the Company received $3,685,500 in Base Hire from
the Charterer for the period from April 1 to June 30, 2002. In July 2002 the
Broker Panel determined that there would be no Additional Hire for the period
April 1 to June 30, 2002.
On July 1, 2002 the Company received $3,726,000 in Base Hire from
the Charterer for the period from July 1 to September 30, 2002. Results of
Operations -2nd quarter 2002
Results of Operations - 2nd quarter 2002
----------------------------------------
The Company's revenues from the Charter Hire for the period April 1
to June 30, 2002 derived from the Base Hire of $3,685,500 ($13,500 per day per
Vessel).
Net costs during the Report Period were $1,839,834 of which three
months depreciation of the Vessels constitutes $1,707,760.
Net profit during the Report Period was $1,399,054.
Liquidity and Capital Resources
-------------------------------
Total Assets of the Company at June 30, 2002 were $138,622,306
compared to $142,658,488 at December 31, 2001. Cash held at June 30, 2002 was
$229,626.
The Company's only source of income is from the contract with BP
Shipping. 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 minimum 7 years and maximum
14 years if all options are declared. The contracts are guaranteed by BP Amoco
p.l.c.
The Company's dividend policy is to pay to its shareholders
dividends that are substantially equal to the amounts received by it under the
Charters, less fixed administrative and interest expenses.
Dividend Payment
----------------
Based on the minimum Base Hire for the 1st quarter of 2002, from
January 1 to March 31 and additional hire for the 4th quarter of 2001, the
Board of Directors declared in January 2002 a Dividend of $3,494,378 or $0.36
per Common Share. The dividend was paid to Shareholders in February 2002.
Based on the minimum Base Hire for the 2nd quarter of 2002, from
April 1 to June 30, the Board of Directors declared in April 2002 a Dividend
of $3,300,246 or $0.34 per Common Share. The dividend was paid to Shareholders
in May 2002.
Based on the minimum Base Hire for the 3rd quarter of 2002, from
July 1 to September 30, the Board of Directors declared in July 2002 a
Dividend of $3,203,180 or $0.33 per Common Share to be paid to Shareholders in
August 2002.
The table below illustrates the historical development of the
Dividend per Common Share:
Period 1997 1998 1999 2000 2001 2002
------------------------------------------------------------------------------
1st Quarter 0.40 0.32 0.34 1.41 0.36
2nd Quarter 0.41 0.32 0.45 1.19 0.34
3rd Quarter 0.32 0.35 0.67 0.72 0.33
4th Quarter 0.30 0.30 0.36 1.10 0.55
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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 - 6/30 1/1 - 6/30 2nd Qtr. 2nd Qtr. All
2002 2001 2002 2001 2001
---------------------------- ----------- ----------- ----------- ----------- -----------
Revenue 7,330,500 18,897,105 3,685,500 7,258,087 28,359,568
Ship Broker Commissions (91,631) (91,631) (46,069) (46,069) (184,781)
Management Fee Expense (125,000) (125,000) (62,500) (62,500) (250,000)
Insurance Expense (42,000) (34,998) (21,000) (17,499) (72,333)
Other Expenses (18,356) (23,993) (2,505) (14,536) (31,406)
Depreciation (3,415,520) (3,415,520) (1,707,760) (1,707,760) (6,831,040)
----------- ----------- ----------- ----------- -----------
Net Operating Income 3,637,992 15,205,963 1,845,665 5,409,723 20,990,008
Fiancial Income 11,468 144,868 5,326 55,232 189,244
Financial Expenses (882,348) (887,051) (451,938) (443,538) (1,793,776)
----------- ----------- ----------- ----------- -----------
Net Financial Items (870,880) (742,183) (446,611) (388,306) (1,604,532)
----------- ----------- ----------- ----------- -----------
Net Profit 2,767,113 14,463,780 1,399,054 5,021,417 19,385,476
----------- ----------- ----------- ----------- -----------
Earnings per Share 0.29 1.49 0.14 0.52 2.00
Cash Flow per Share 0.64 1.84 0.32 0.69 2.70
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BALANCE SHEET INFORMATION
All figures in USD
Jun. 30 Dec. 31
2002 2001
--------------------------- ----------- -----------
ASSETS
Vessels 138,328,485 141,744,005
Prepaid Finance charges 36,195 43,435
Prepaid insurance 28,000 70,000
Accounts receivables 0 170,180
Cash and cash on depoist 229,626 630,868
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Total Assets 138,622,306 142,658,488
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LIABILITIES
Other Shareholder Equity 108,495,195 112,522,756
SHAREHOLDER'S EQUITY
9,706,606 Common Shares, 97,066 97,066
par value $.01 per share,
outstanding 50 million authorized
Other Comprehensive Income (1,288,000) (778,000)
Long Term Debt 30,000,000 30,000,000
Accounts Payable 0 0
Accrued Expenses 1,288,000 778,000
Accured Interest 30,045 38,666
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Total liabilities & equity 138,622,306 142,658,488
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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: July 31, 2002 By:/s/ Herbjorn Hansson
----------------------------
Herbjorn Hansson
President and
Chief Executive Officer
01318.0002 #340500