Age not significant as long as the tanker is well maintained
Nordic American Tankers (NAT), in its latest quarterly report, stated 2016 as a very good year for the company. It also asserted that whether a ship has been around five years or fifteen years or longer does not matter as long as they are well maintained.
The report also stated that shipbuilding technology for crude oil tankers has not undergone much change over the last 20 years.
The results for the fourth quarter (TCE US$21,600) came out solidly higher than the third quarter (TCE US$16,700). So far, 2017 has started at levels (TCE US $25,000) well above the fourth quarter.
NAT operates a homogenous fleet. It has a cash break-even rate below $11,000 per day per ship. The operating expenses for its vessels are put at about $8,400 per vessel per day. The dry-docking costs for vessels in the fleet that are more than 15 years are on average less than US$2 million per vessel which is in line with the rest of the fleet.
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