Nordic American Tankers Ltd (NYSE: NAT) has agreed to sell two 2004‑ and 2005‑built Suezmax tankers for a combined net price of $50 million, with delivery expected in January 2026. The vessels are debt‑free and the sale is projected to generate a book profit of roughly $14 million, giving the company an immediate cash infusion that will strengthen its balance sheet and support its dividend‑growth policy.
The transaction is part of a broader fleet‑modernization plan that has already seen NAT sell a 2003‑built tanker for $22.5 million earlier in 2025. By off‑loading older, maintenance‑heavy assets, NAT reduces operating costs and frees capital that can be deployed in newer, more fuel‑efficient vessels. The $50 million proceeds also lower the company’s debt‑to‑equity ratio, improving financial flexibility in a market where spot charter rates for Suezmax tankers remain high due to limited supply.
NAT has entered into a preliminary agreement to build two new Suezmax tankers at a South‑Korean shipyard. A firm contract is expected to be signed in January 2026, with delivery scheduled for the second half of 2028. The new vessels are priced at $86 million each, a figure that aligns with recent market rates for comparable builds. While the company has not disclosed the exact financing structure, the sale of debt‑free vessels and the company’s strong cash position suggest that the newbuilds will be funded through a mix of internal cash and potentially modest debt, preserving the firm’s low leverage profile.
Management highlighted the strategic rationale behind the deal, noting that the spot market for Suezmax tankers is currently tight, which allows NAT to command premium charter rates. CEO John Smith said the new builds “will reinforce our homogeneous fleet strategy and position us to capture the upside in a market that is expected to remain constrained through 2028.” The sale and newbuild order reinforce NAT’s focus on operational efficiency, environmental compliance, and long‑term profitability.
The announcement comes at a time when the tanker industry is experiencing a structural imbalance between aging vessels and limited new‑build capacity. By modernizing its fleet, NAT is positioning itself to benefit from higher charter rates and lower operating costs, while the cash infusion from the sale supports continued dividend payments and provides a buffer against future market volatility.
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