NAT

Nordic American Tankers Ltd. - Form 6-K Summary

Business Context and Reporting Period

This Form 6-K, filed on July 13, 2004, reports the second-quarter and first-half 2004 financial results for Nordic American Tanker Shipping Limited (NAT). The Company operates three Suezmax tankers under long-term time charters with BP Shipping. As of June 30, 2004, the Company had 9,706,606 shares outstanding.

Key Financial Metrics

Balance Sheet Highlights (as of June 30, 2004):

• Total Assets: $131,195,773
• Long-term Debt: $30,000,000 (unchanged from Dec 31, 2003)
• Current Liabilities: $177,327
• Shareholder's Equity: $101,018,446

Material Changes

Net profit for the first half of 2004 increased by approximately 30% compared to the same period in 2003, driven by stronger tanker rates. The Q2 2004 time charter equivalent rate was $43,255 per day, a significant increase from $23,243 in Q2 2003, though lower than the exceptional $72,287 per day achieved in Q1 2004. Operating expenses increased in Q2 2004 compared to Q2 2003, primarily due to "Other Expenses" rising from $24,964 to $352,229.

Outlook, Dividends, and Risks

Dividends: The Company declared a third-quarter 2004 dividend of $0.88 per share, payable on or about August 17, 2004. Total dividends paid in 2004 to date are $3.73 per share.

Charter Status: BP Shipping has not exercised options to extend the charters for the three Suezmax tankers. The existing charters will terminate between September 1 and November 1, 2004. One vessel has been fixed on a 5-year contract with Gulf Navigation. The Company is evaluating alternatives for the remaining two vessels, including renegotiation with BP or deployment in the spot market.

Operational Restrictions: Restrictions on the Company's business activities, which expire upon the termination of the BP charters, will allow the Company to conduct unrestricted business thereafter.

Risks: Forward-looking statements are subject to uncertainties including fluctuations in charter rates, vessel values, bunker prices, OPEC production levels, and geopolitical disruptions to shipping routes.

Investor Verification Checklist

• Confirm the final employment status and rates for the two Suezmax tankers not yet fixed with Gulf Navigation following the BP charter expiration.
• Verify the impact of the "Other Expenses" increase in Q2 2004 on future profitability.
• Monitor the Company's ability to secure new long-term charters or favorable spot rates in the post-BP charter environment.
• Review the Company's liquidity position relative to upcoming drydocking or maintenance costs not explicitly detailed in the summary.