NAT Is the Third Best Crude Tanker Stock Performer

Nordic American Tankers’ (NAT) YTD (year-to-date) returns were 7% as of June 28. It is the third-best performer among its peers so far this year behind DHT Holdings (DHT) and Frontline (FRO) with YTD returns of 30.6% and 27.9%, respectively.

Nordic American Tankers has outperformed the shipping ETF and the broad equity market indexes. Since the start of the year, the Invesco Shipping ETF (SEA) has fallen 12.1%. Oil and gas transportation companies account for 47.7% of SEA. The Dow Jones Industrial Average (DIA) has fallen 2.1% YTD as of June 28. The SPDR S&P 500 ETF (SPY) has risen 1.5% during the same period.

Nordic American Tankers recorded the biggest daily gain for the year on June 18, when the stock rose more than 21%. For more information, read Market Realist’s Why Nordic American Tankers Jumped 21%.

In April, Nordic American Tankers announced its 83rd consecutive quarterly dividend distribution. The company reduced its first-quarter dividend to $0.01. The lower dividend was a reflection of the weak tanker market. The company aims to return to the average dividend level, which was above $2 per year between 1997 and 2018. In May, the company announced the sale of two vessels. Nordic American Tankers will take delivery of its three newbuilds in early July, at the end of August, and at the end of October. The company reported revenues of $29.6 million in the first quarter, a 46.3% fall YoY (year-over-year). Teekay Tankers’ (TNK) revenues in the first quarter were 12% lower than last year. DHT Holdings’ (DHT) first-quarter revenues were 34.6% lower YoY.