Seeking Alpha

Nordic American Tanker (NAT -1.4%) acquires the remaining 50% shareholding interest in Orion...

Nordic American Tanker (NAT -1.4%) acquires the remaining 50% shareholding interest in Orion Tanker Pool from Frontline (FRO -9.1%), effective January, 2013. Once the transaction closes, Orion will become a 100% subsidiary of NAT. FRO's nine suezmax vessels will leave Orion later this year after the shipper advised NAT that it wishes to be more flexible in the operation of its vessels.
Comments (8)
  • DHT is still the better buy. NAT probably headed for recivership
    18 Sep 2012, 02:20 PM Reply Like
  • That comment deserves more explanation. Throwing around terms like receivership is irresponsible without analysis. Anyone knowledgeable in shipping stocks is aware of the industry issues but BK or receivership is not looming for NAT.
    18 Sep 2012, 02:46 PM Reply Like
  • agree Jim. Papa's comment is out of line.


    NAT stock may be broken, but the company is among the least leveraged and best run in that industry.
    18 Sep 2012, 02:59 PM Reply Like
  • NAT already announced an analyst call for 9/25, should be interesting to hear what they say about why they are buying out FRO. It seems NAT may be reverting (recent Exxon Mobil charter deal) to what they were originally created for, a fleet of tankers transporting BP oil.


    A question for the call; What will the these charters bring in steady cash flow (as well as duration since rates will likely be locked) at the expense upside (and downside) to spot rates? Is FRO leaving since they expect better spot rates? FRO is still controlled by John Frederickson, who is one the more knowledgeable players in the shipping/energy industry.
    18 Sep 2012, 03:03 PM Reply Like
  • Apologizes if my comment offended, but I stick by it NAT has more chance of going into BK than DHT. I have done my analysis, and DHT IS THE ONLY tanker stock I own. Got to ask your self about the cost of write downs, cancellation of new ship orders and replacing those orders at a cost, with an older existing fleet, which you will have to take more write downs on.
    NAT may make it through this down turn in the tanker industry without going into BK but it will be tough...
    18 Sep 2012, 03:15 PM Reply Like
  • I know nothing about DHT and will not comment on it. I do however know a little bit about NAT having owned it off and on for many years. I suggest you take a very hard look at the NAT balance sheet and income statement. These are tough times in the shipping business but companies with less leverage have a better chance of survival. NAT has low leverage and should survive. The Orion pool is how this started and is probably a non-event in the scheme of things. Cheers to all.
    18 Sep 2012, 04:13 PM Reply Like
  • I think CEO Hansson has the right approach. Buy out the competition, diversify. Add my take; get rid of our Socialist leaning political idiots, return to peace through strength and wait till the crap quits hitting the fan and hope NAT's cash on hand will outlast this mess.
    20 Sep 2012, 04:44 AM Reply Like
  • I feel CEO Hansson has the right approach. Buy out and diversify. Add my opinion; get rid of the political socialists, not excluding the current Pres., bring back peace through strength, our big stick, walk softly, sit back and wait for the mess to subside then watch NAT fly, if the COH holds.
    20 Sep 2012, 05:06 AM Reply Like
DJIA (DIA) S&P 500 (SPY)