Opportunity Knocks at Nortankers

Despite all the negative talk about Nortankers and the weak results in 1990, the company turned in very strong results for the first quarter of 1991, suggesting that management’s strategy may be beginning to pay off. After reporting a net loss of $16.7m on revenue of $14.2m in 1990, the company reported a profit of $3.98m on gross freight and demurrage revenue of $12.16m during the first quarter.

The company operates a fleet of four VLCC’s that range in age from 13 to 17 years old. Following an erratic first quarter in the charter market, which saw rates climb as high as WS88.5 and sink as low as WS35, the company reported that it was satisfied with the rates it was getting for its ships. The Nor Master is fixed for continuous voyages for nine months.

During the first voyage, the ship is only expected to earn $6,000 per day, but thereafter it is estimated to earn $18,000 per day, with an option for three months at $22,000 per day. Following a voyage from the Gulf to Europe, the Nor Adventurer will be employed on a trial basis with Sanko Steamship, whereby Sanko will seek cargoes for the vessel in the market for Japanese controlled tonnage. The Nor Explorer and the Nor Frontier are currently trading on spot.

This is only an excerpt of Opportunity Knocks at Nortankers

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