Oil transporter Nordic American Tanker
This time around, Nordic American's spot rates came in around $27,000 per day, about 10% higher than in the previous quarter. Thanks to the company's low cost structure, higher rates allowed the firm to declare a $0.50 quarterly dividend, which is a 25% sequential hike, though only half the level paid out last year.
Nordic does have one of its 12 suezmax ships on long-term charter, but this is very much a spot market play. These tanker companies come in all shapes and sizes. Frontline
Nordic gave a jab to some of its dry-bulk brethren in noting that other companies have strayed from their regular business policies. One example would be DryShips
This gets back to the matter of transparency. While its quarterly results are unpredictable, Nordic American's business is very easy to understand, and its goals are clearly communicated. In this age of CDOs, SIVs, and Level III assets, there's a lot to be said for this quality.