$61M each for 5 year old tankers? Pretty steep price - the last two they bought were nearly half that price, a bit older, but still:
Hamilton, Bermuda, May 31, 2014
Nordic American Tankers Limited ("NAT" or the "Company") today announced that the Company has agreed to acquire two Suezmax vessels, delivered from a top shipyard in 2005. The agreed purchase price is $36.5 million each.
And they ordered two newbuilds that cost about the same as those used ones they just bought:
Hamilton, Bermuda, December 9, 2014
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Nordic American Tankers Limited ("NAT" or the "Company") announced today that it has entered into a preliminary agreement with Sungdong Shipbuilding & Marine Engineering Co., Ltd., ("Sungdong"), a highly-regarded Korean shipyard, to build two Suezmax tankers of 158,000 deadweight tons each to be delivered to NAT in the third quarter 2016 and the first quarter 2017. The purchase price of the two newbuilding vessels is in the region of $65 million each, which is expected to be financed by resources of NAT.
Only thing I can think of that explains this is that the value of tankers has spiked this year - should be reflected in the debt/equity or NAV of NAT for Q2 earnings?