The on-going damage in the world’s shipping business still has to wreak more havoc before it has run its course. The latest example is the fourth-quarter earnings report for Nordic American Tanker Ltd. (NYSE: NAT), which today posted an EPS loss of -$0.37, considerably worse than the expected loss of -$0.29. Net revenue fell almost -6% to $19.3 million from the same period a year ago. Analysts were expecting $26 million.
The tanker market has been hit by an oversupply of new vessels just as the global economy slowed down. Day rates have been very low, though Nordic reported an improvement in the fourth quarter to $12,000/day from $8,000/day in the third quarter. A day rate of around $24,000/day is needed in order for tankers to be profitable. That rate could be a long ways off.
Nordic shares are down about -3.7% at $13.72 in pre-market trading. The stock’s 52-week range is $11.58-$26.18.
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