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.
"This is an important step forward for Nordic American," said Herbjørn Hansson, the Chairman & CEO of the Company. "By adding two more ships, we increase the dividend capacity and bolster our earnings potential. We believe that our solid balance sheet as well as our well-defined and transparent operating model are elements supporting the competitive position of the Company."