NAT AGM Signals Confidence Amidst Volatile Tanker Market

NEW YORK, NY – November 21, 2025

Nordic American Tankers Limited (NAT) held its Annual General Meeting today, signaling continued confidence in its leadership and direction despite ongoing volatility in the global crude oil tanker market. Shareholders approved the re-election of directors Herbjorn Hansson, Alexander Hansson, Jenny Chu, and Jim Kelly, as well as the appointment of KPMG as the company’s independent auditor. The approval comes as the tanker sector enjoys a period of strong earnings fueled by shifting trade patterns and geopolitical disruptions.

Leadership Continuity & Corporate Governance

The re-election of Herbjorn Hansson, founder and CEO, alongside the rest of the board, underscores a commitment to long-term stability and consistent strategy. Hansson, a veteran of the shipping industry, has steered the company through multiple cycles, and his continued leadership provides a familiar face at the helm. However, the board composition warrants closer examination. While Jenny Chu is designated as an independent director, the significant holdings and familial ties of Alexander Hansson raise questions about the balance of power.

“Maintaining continuity is critical in our industry,” explained one shipping analyst. “Investors want to see experienced hands guiding the ship, especially during times of uncertainty. However, a truly independent board is essential for robust oversight.”

The company's corporate governance practices, while claiming alignment with NYSE standards, don't fully adhere to all requirements, particularly regarding fully independent director roles. This approach is common for Bermuda-based issuers like NAT, but warrants consideration by shareholders.

Riding the Wave of Tanker Market Dynamics

The AGM’s positive sentiment aligns with a surprisingly robust period for crude oil tankers. Despite initial concerns about a potential slowdown, rates have remained elevated throughout much of 2025, driven by a complex interplay of factors. Western sanctions on Russian oil have significantly altered trade routes, forcing longer voyages and increasing demand for tankers. This, coupled with ongoing instability in key shipping lanes, such as the Red Sea, has created a favorable environment for tanker owners.

“The disruption to traditional trade flows has been a major boon for the industry,” noted a market observer. “We’re seeing increased ton-mile demand and a tighter supply of available vessels, which is pushing rates higher.”

NAT’s first-half results reflected this positive trend, with sustained high charter rates supporting earnings. However, the company recently reported a net loss in Q2 2025, attributed to scheduled dry dockings. This highlights the cyclical nature of the industry and the importance of efficient operations and cost management.

Navigating Future Headwinds

While the current market conditions are favorable, several challenges loom on the horizon. A potential easing of geopolitical tensions could reduce the demand for longer voyages and lower freight rates. Furthermore, the emergence of a new oil surplus could put downward pressure on prices and reduce the need for storage and transportation.

“The current environment is unlikely to persist indefinitely,” cautioned a shipping economist. “We expect to see increased competition and a more balanced market in the coming years.”

The aging tanker fleet also presents a challenge. A significant portion of vessels are approaching the end of their service life, requiring substantial investment in new capacity. However, newbuilding orders have been muted, reflecting uncertainty about future fuel technologies and the long-term direction of the industry. This suggests that supply growth may struggle to keep pace with demand, potentially supporting rates in the long run.

NAT, like its peers, is carefully navigating these challenges, focusing on operational efficiency, cost control, and strategic investments. The company's commitment to maintaining its dividend – a consistent practice since 1997 – underscores its confidence in its long-term prospects and its commitment to shareholder returns. While the Q2 loss was a setback, the ability to sustain dividends while undergoing drydockings speaks to a strong cash position. Analysts project diverse stock prices from $3 to $5, with a consensus around $4; this demonstrates continued investor interest in the stock, despite fluctuating earnings.

Despite maintaining positive ratings and investor interest, a 'shadow fleet' of tankers operating outside of mainstream trades adds a layer of complexity to the market. These vessels contribute to inefficiencies and extend voyage distances, further tightening available capacity and supporting freight rates. As this sector continues to evolve, NAT will need to carefully monitor these trends and adapt its strategies accordingly.