The Company had a successful IPO on the
Following the previously announced Letters of Intent, the Company has entered into firm newbuilding contracts with Vard Aukra shipyard in
Key points to consider:
• Earnings per share in 2Q2014 were
The Board has declared a cash dividend of
Net income for 2Q2014 was
The Company's operating cash flow was
Included in the G&A costs is about
Including a planned expansion of the credit facility, the Company has the financial resources to take delivery of its four newbuildings on order. We do not expect to issue equity in connection with the delivery of these newbuildings.
As a matter of policy, the Company will always try to keep a strong balance sheet with low net debt and a focus on limiting the Company's financial risk. At the end of 2Q2014, net debt per NAO vessel in operation was zero.
The Company has in place a non-amortizing credit facility of
We concentrate on keeping our vessel operating costs low, while always maintaining our strong commitment to safe operations. As we expand our fleet, we do not anticipate that our administrative costs will rise correspondingly.
Our primary objective is to enhance total return for our shareholders, including our quarterly dividend. The average rate achieved on the fleet is around
Our fleet is comprised of ten high-quality PSVs including four newbuildings. We currently have six vessels in operation, all in the
Please see the vessels and employment profile below.
|Vessel||Built||Charterer||Duration - firm periods|
|Blue TBN I||N/A|
|Blue TBN II||Sep. 2015||N/A|
The Company's objective is to ensure term employment for the fleet, including for the newbuildings. The specifications of the fleet are by and large of the same nature. NAO will seek to grow the fleet further with vessels matching our clients' requirements. The expected delivery time for the newbuildings is listed above.
The PSV Market
The Company believes the market outlook for our PSVs is positive. An increased number of drilling rigs creates demand for the Company's vessels. We expect a well-balanced market going forward.
Several of our vessels are suitable for operations in Arctic conditions. There is increasing activity in
Strategy Going Forward
The main elements of the strategy of NAO have the same basis as
The Company intends to grow its fleet. After an acquisition of vessels or other forms of expansion, the Company should be able to pay a higher dividend per share and produce higher earnings per share than had such an acquisition not taken place.
Our dividend policy will continue to enable us to achieve a competitively priced risk adjusted cash yield and a positive total return over time compared with that of other companies.
NAO is firmly committed to protecting its underlying earnings and dividend potential.
Our Company is well positioned. We shall endeavor to safeguard and further strengthen the position for our shareholders in a deliberate, predictable and transparent way.
We encourage investors who seek exposure to the Offshore Supply Vessel sector to consider shares in NAO.
Link to the graph: http://hugin.info/159489/R/1846854/643946.pdf
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the PSV market, as a result of changes in the general market conditions of the oil and natural gas industry which influence charter hire rates and vessel values, demand in platform supply vessels, our operating expenses, including bunker prices, dry docking and insurance costs, governmental rules and regulations or actions taken by regulatory authorities as well as potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, the availability of financing and refinancing, vessel breakdowns and instances of off-hire and other important factors described from time to time in the reports filed by the Company with the
Tor-Øyvind BjØrkli, Chief Executive Officer
Tel: +47 90 62 70 14
Tel: + 377 93 25 89 07 or + 33 678 631 959
Turid M. SØrensen, Chief Financial Officer
Tel: +47 90 57 29 27
Tel: +1 212 574 1223
HerbjØrn Hansson, Executive Chairman
Tel: +1 866 805 9504 or + 47 901 46 291
2nd Quarter 2014 Report: http://hugin.info/159489/R/1846854/643946.pdf