Nordic American Tankers Limited reported for QQ4 2024 with a revenue figure of USD 46.39 million, down 10.85% quarter-over-quarter and down 51.32% year-over-year. Despite the revenue decline, the company posted a robust gross profit of USD 31.68 million and an EBITDA of USD 22.63 million, translating to a gross margin of 68.29% and an EBITDA margin of 48.77%. Net income was USD 1.30 million, resulting in a net margin of 2.79% and earnings per share (EPS) of USD 0.0062. The quarter benefited from favorable gross margin dynamics even as top-line activity softened, underscoring the earnings quality of the core fleet operations.
Cash generation remained positive, with net cash provided by operating activities of USD 19.44 million and free cash flow (FCF) of USD 19.35 million for QQ4 2024. The company paid USD 25.06 million in dividends during the period, contributing to negative net financing cash flow (-USD 24.38 million) and a modest overall decrease in cash of USD 4.45 million, leaving cash and cash equivalents around USD 39.18 million at period-end and USD 44.38 million reported as cash at the end of the period. Balance sheet metrics show a solid equity base of USD 508.81 million against total assets of USD 817.59 million and a net debt position of USD 230.53 million (Total debt USD 269.70 million; Cash balance USD 39.18 million). Liquidity ratios remained comfortable (current ratio 1.65, quick ratio 1.18, cash ratio 0.74), though leverage remains meaningful given the cyclical nature of the offshore crude transport market.
From a strategic perspective, the QQ4 2024 results illustrate the company’s capacity to translate fleet operations into meaningful cash flow even in a softer revenue environment. The dividend policy, with a payout reflected by a dividend yield of approximately 4.8% and a payout ratio near 19.35%, provides income to investors while preserving a material portion of FCF for balance sheet management. The lack of explicit forward guidance in the data necessitates a cautious outlook anchored on tanker rate trajectories, fleet utilization, and macro oil demand developments. Investors should monitor (i) spot rate volatility for Suezmax vessels, (ii) charter rate dynamics and fleet utilization, and (iii) the company’s ability to sustain FCF amid cyclical swings.