Nordic American Tankers Limited reported a materially challenged QQ2 2025, characterized by a sharp YoY revenue decline and only modest profitability despite a positive operating margin. Revenue came in at USD 40.15 million for the quarter, down 58.9% from USD 97.81 million in QQ2 2024, reflecting a pronounced cyclical trough in tanker rates and utilization. EBITDA reached USD 23.36 million with operating income of USD 7.56 million, delivering an operating margin of roughly 18.8%, underscoring disciplined cost management that helped offset top-line softness.
Net income was a small loss of USD 0.85 million (-2.12% net margin), with the bottom line pressured by a high interest burden and other income/expense dynamics, including total other income/expenses of USD -8.40 million. The company generated USD 1.37 million in cash from operations but incurred significant investing activity, including USD -135.37 million of capital expenditures and USD 23.46 million in acquisitions, resulting in negative free cash flow of USD -133.998 million for the quarter. Financing activity provided USD 88.35 million, enabling a modest reduction in cash burn, yet overall cash at period end remained USD 94.49 million.
From a balance sheet perspective, Nordic American Tankers maintains a sturdy liquidity profile (current ratio 2.33, cash ratio 1.46) with cash and cash equivalents of USD 94.49 million and total assets of USD 957.392 million. However, leverage is elevated: total debt USD 442.30 million and net debt USD 347.81 million, with a debt-to-capitalization of ~0.48 and an interest coverage ratio of 0.82. The fleet comprises 24 Suezmax crude tankers, anchoring asset value but exposing the group to cyclicality in oil demand and charter rates. Without explicit guidance in the QQ2 2025 materials, the outlook hinges on sector rate cycles, fleet utilization, and refinancing dynamics. Investors should monitor rate normalization, charter coverage, capex cadence, and debt maturities as key drivers of earnings and cash flow going forward.