NAO turns red in 2015 but keeps paying

New York-listed owner reports loss for the fourth quarter and the full year but maintains payout of $0.12 per share.

Nordic American Offshore (NAO) has racked up a bigger loss in the fourth quarter but has stuck to its dividend payment policy.

The New York-listed offshore vessel owner saw its net deficit for the period run to $4.4m against $1.7m a year ago.

Its full year loss stood at $10.8m, compared to a profit of $6.9m in 2014.

The company has declared a dividend of $0.12 per share for the fourth quarter.

It explained that platform supply vessels (PSVs) are having a tough time because demand for new projects has been reduced.

And it added that the number of available vessels in the North Sea resulted in an unusually weak summer market.

Nordic American Tankers (NAT)’s spin-off posted net charter revenue of $6.7m for the period, versus $9.9m.

NAT recently increased its stake in NAO in order to express its faith in the offshore market despite current difficulties.

The owner of 10 PSVs said it sees commercial opportunities in this environment thanks to its strong financial position.

NAO had total net debt of $41.9m at the end of December and explained the company is fully financed up to early 2020.