Key Takeaways from Nordic American Tankers’ 3Q15 Earnings



North American Tankers’ thoughts on tanker market

Nordic American Tankers (NAT) gave insights on the tanker market. The company said that the development of the world economy affects the tanker market. Going forward, shale oil and tar sand oil projects are expected to impact the US and Canadian oil sectors more. According to the company, European crude imports have shown a rising trend. This is positive for the tanker industry.

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Actual revenue versus estimates

In 3Q15, Nordic American Tankers’ net revenue was the same as Wall Street analysts’ estimate of $66 million. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) in 3Q15 was $49.5 million. It was $3.4 million higher than Wall Street analysts’ estimate of $46.1 million.

In 3Q15, Nordic American Tankers’ (NAT) EBITDA was lower than its 2Q15 EBITDA of $53.7 million.

Stock performance

Nordic American Tankers’ stock price rose by 2.3% on November 16, 2015—compared to its stock price on November 11 when the company released its 3Q15 earnings. For the same period, other crude tanker companies’ stock prices also rose.

  • Teekay Tankers (TNK) rose by 6.3%
  • Tsakos Energy Navigation (TNP) rose by 2.8%
  • Frontline (FRO) rose by 1.3%
  • DHT Holdings (DHT) rose by 2.9%

Investors who want broad exposure to industrials can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

Series overview

In this series, we’ll look at Nordic American Tankers’s 3Q15 results. We’ll analyze the factors that will affect the company’s revenue and costs in 4Q15.


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