* Q4 loss $0.10/shr $ vs. est loss $0.04/shr
* Revenue down 41 percent
* Says spot tanker mkt for Q1 started on a positive note
* Stock down 2.5 pct
(Adds analyst comments, updates share price)
Feb 12 Nordic American Tanker Shipping Ltd
(NAT.N) reported a wider-than-expected quarterly loss as
weakness in spot charter rates for oil tankers hurt its
revenue. The company missed estimates because of a volatile
tanker market, said Dahlman Rose analyst Omar Nokta.
"In our view, shut-in refinery capacity worldwide, running
at below 80 percent on average in the OECD (Organisation for
Economic Co-operation and Development), is the reason for the
volatility," Nokta said in a research note to clients.
However, the company said the spot tanker market for the
first quarter of 2010 has started on a positive note compared
with the fourth quarter of 2009.
There are indications that the world economy has bottomed
out which is positive for the tanker business, Nordic said in a
Nokta believes that the reduced refinery utilization will
result in continued refined product inventory draws setting the
stage for firmer margins and an OPEC production boost later in
The analyst expects Suezmax rates for average $28,000 per
day, compared to his forecast of $20,000 per day for the fourth
quarter. Suezmax are the largest ships capable of sailing
through the Suez Canal.
Net loss for the fourth quarter was $4.3 million, or 10 cents
a share, compared with a net income of $17.2 million, or 50
cents a share, in the year-ago quarter.
Analysts, on average, had expected a loss of 4 cents a
share, according to Thomson Reuters I/B/E/S.
Net voyage revenue for the quarter fell 41 percent to $23.6
million, and fell short of analysts' average expectation of
Shares of the company were trading down 2.5 percent at
$28.08 in morning trade on the New York Stock Exchange.
(Reporting by Hezron Selvi in Bangalore; Editing by Maju
Samuel, Jarshad Kakkrakandy)