FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May 2004
NORDIC AMERICAN TANKER SHIPPING LIMITED
(Translation of registrant's name into English)
Cedar House
41 Cedar Avenue
Hamilton HMEX
Bermuda
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto is a copy of a press release issued by Nordic
American Tanker Shipping Limited (the "Company") today, May 10, 2004.
ADDITIONAL INFORMATION
BP Plc files annual reports on Form 20-F (File No. 1-6262) and
periodic reports on Form 6-K with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934, as amended.
NORDIC AMERICAN
TANKER SHIPPING LIMITED
FOR IMMEDIATE RELEASE
Hamilton, Bermuda, May 10, 2004: Nordic American Tanker Shipping Ltd. (AMEX:
NAT, OSE: NAT) today announced that it had concluded an agreement to charter to
Gulf Navigation Company LLC of Dubai, U.A.E. the first of its modern
double-hull Suezmax tankers as of the expiration of the original BP charter in
Q4 2004. The five-year bareboat charter agreement, with two optional one-year
extensions, provides for a bareboat charter rate of $17,325 per day for the
vessel, equivalent to a timecharter rate of approximately $25,000 per day.
Rolf Amundsen, a spokesman for Nordic American, said: "The charter
we are announcing today provides a strategic foundation for the future growth of
the company. With the fixed income from this ship, we believe that we have
significantly reduced the market risks to our company and made it more
attractive to operate the rest of our fleet in the spot, or short-term market.
As we move ahead in anticipation of the expiration of the present charters in Q4
2004, it is the plan of the Nordic American Board to grow our fleet. Having a
portion of our fleet on fixed rate charter reduces the market rates we need to
receive on the remainder of the fleet to achieve cash breakeven, and gives us
confidence that we can maintain a dividend while chartering the remainder of the
fleet at variable or shorter term rates, which, while volatile, may from time to
time be much higher. We are very excited about our cooperation with Gulf
Navigation which could lead to further business."
The charter with Gulf Navigation, an internationally recognized
shipping company, is a bareboat charter, which means that Gulf Navigation will
bear operating costs. Accordingly, Gulf Navigation will provide the crew and
will assume risks of off-hire and of increases in operating costs. Nordic
American will have rights of inspection to review the charterer's maintenance of
the vessel. The charter will commence immediately after BP redelivers the vessel
in the fourth quarter of 2004. Gulf Navigation will have two one-year options to
extend the charter for a sixth and a seventh year at the same rate. The fixed
bareboat charter rate of $17,325 per day is $3,825 per day (or approximately
$1,396,125 per year) higher than the base rate of $13,500 per day in the current
bareboat charter with BP which has a variable rate. Using assumed operating
costs of $7,333 per day which would be borne by the charterer, and assuming 360
days of timecharter operations as compared to 365 days of bareboat hire, the
$17,325 per day bareboat rate is equivalent to a $25,000 per day timecharter
rate.
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.
Nordic American Tanker Shipping Limited (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," "except," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential," "will,"
"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.
In addition to these important factors, 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 tanker market, as a result of
changes in OPEC's petroleum production levels and world wide oil consumption and
storage, changes in our operating expenses, including bunker prices, drydocking
and insurance costs, the market for our vessels, availability of financing and
refinancing, changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future litigation,
general domestic and international political conditions, potential disruption of
shipping routes due to accidents or political events, and other important
factors described from time to time in the reports filed by the Company with the
Securities and Exchange Commission, including our Annual Report on Form 20-F.
Contacts: Gary J. Wolfe
Seward & Kissel LLP, New York, USA
Tel: (1) 212 574 1223
Scandic American Shipping Ltd (www.scandicamerican.com)
P.O Box 56
3201 Sandefjord, Norway
Tel: + 47 33 44 61 40, or +47 901 46 291,
e-mail: nat@scandicamerican.com or
Rolf Amundsen
Amundsen Partners
Oslo, Norway
Tel: + 47 908 26 906
e-mail: amundsen@absnet.no
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NORDIC AMERICAN TANKER SHIPPING LIMITED
(registrant)
Dated: May 10, 2004 By:/s/ Herbjorn Hansson
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Herbjorn Hansson
President and
Chief Executive Officer
01318.0002 #484494