Nordic American sees weak 3rd-qtr amid tanker downturn
Aug 28 (Reuters) - Nordic American Tankers Ltd expects third-quarter results to be weaker than in the preceding quarter as tanker rates remain depressed in an oversupplied market.
The tanker operator has been posting a quarterly loss for the last two years as daily rates for transporting crude and refined petroleum products plunged. Prices have remained low as scores of tankers ordered before the economic downturn continue to be delivered and demand remains weak.
Nordic American, however, expects to save 30 cents to 40 cents per share over a year as it implements measures to cut down on fuel costs, CEO Herbjorn Hansson said in a letter to shareholders.
The savings could improve cash flow and dividend potential, Hansson said. Nordic American has kept its dividend in spite of the downturn in the tanker market.
The company's shares, which have lost about a third of their value over the last year, closed at $11.62 Monday on the New York Stock Exchange.
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