Across the universe of oil companies reporting this quarter, we've seen a sequential improvement as prices have strengthened. Total SA
No.
The oil tanker market marches to a slightly different beat. It's not the price of oil that drives results, but the volumes of oil being shuttled around the globe -- that, and the tightness of the tanker fleet. Unfortunately for Nordic American Tanker
In the third quarter, spot Suezmax tanker rates averaged an abysmal $13,000 per day. To give you some context, daily rates were over $40,000 in the fourth quarter of 2008. Frontline
As a result, Nordic American dropped its dividend to $0.10 per share, compared to $0.50 last quarter and $1.61 in the comparable period last year. These are uncharted waters for most holders of Nordic American stock, accustomed as they are to pulling in 10% or better annual payouts.
Maintaining its dividend when money isn't coming in the front door would be a terrible mistake, however. It's good to see Nordic American sticking with its usual policy of paying a variable dividend without relying on debt. This wards off the specter of insolvency, whereas other shippers like B+H Ocean Carriers, TOP Ships, and the ever-so-scary DryShips