Nordic American Tankers enjoys spot market upswing
Herbhorn Hansson-led tanker owner 'firm believers in market turnaround' for 2018.
Nordic American Tankers says the bounding tanker spot market may lead to a huge jump on its overall value.
"We are happy to inform our friends that the spot market for our ships now has tripled from just a few months back, and doubled just from 10 days ago," chief executive Herbjorn Hansson said.
"That's good for all of us."
He said the tanker industry, which has seen deteriorating earnings, lower dividends and stock prices, has seen daily spot rates more than triple this year to $20,600 from $6,000.
He also pointed out that rates have more than doubled in the first days of October from $9,600 per day.
He said a quarter of Nordic American Tankers' market capitalisation of $314.5m could be earned in a year if the spot market gains another 25% and stays there for 12 months.
"This means a world of difference," he said.
"Spot market earnings are volatile, but volatility is usually a sign of an improved underlying market balance and we have been firm believers in a market turnaround this year."
Hansson-led Nordic American Offshore struck a merger deal with Canada's Horizon Maritime Services that gives Horizon a 52% stake.
