<PAGE>
Commission File No. 01-13944
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 April, 1998
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
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
<PAGE>
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein is a copy of the Annual Report of
Nordic American Tanker Shipping Limited (the "Company") for the
year ended December 31, 1997, which has been distributed to the
Company's shareholders.
ADDITIONAL INFORMATION
The British Petroleum Company p.l.c. 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.
2
<PAGE>
(LOGO)
Nordic American
Tanker Shipping Limited
NORDIC AMERICAN TANKER
SHIPPING LIMITED
1997 ANNUAL
REPORT TO
SHAREHOLDERS
Cedar House
41 Cedar Ave.
P.O. Box HM 1179
Hamilton HM EX, Bermuda
Tel.: (809) 295-2244
Fax: (809) 292-8666
(809) 295-5328
Managers:
Ugland Nordic Shipping ASA
P.O. Box 54
3201 Sandefjord, Norway
Tel.: (47) 33 46 86 08
Fax: (47) 33 46 88 05
3
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BUSINESS
General
Nordic American Tanker Shipping Limited (the "Company")
was incorporated on June 12, 1995, under the laws of the Islands
of Bermuda ("Bermuda") for the purpose of acquiring, disposing,
owning, leasing, and chartering three double hull Suezmax oil
tankers (the "Vessels") and engaging in activities necessary,
suitable or convenient to accomplish, or in connection with or
incidental to, the foregoing. The principal executive offices of
the Company are located at: Cedar House, 41 Cedar Avenue,
Hamilton HM EX, Bermuda, and its telephone number is
(441) 295-2244. See "Additional Information".
In September 1995, the Company offered and sold to the
public 11,731,613 Warrants at the initial public offering price
of $5.00 per Warrant. The exercise price of a Warrant was
$10.21. Prior to the Exercise Date (September 30, 1997), the
Company did not have any operations other than certain limited
operations related to the acquisition of the Vessels, of which
all three were delivered in the last half of 1997. The Company
now owns three modern double hull 150,000 dwt suezmax tankers.
The vessels were built at Samsung Heavy Industries.
On September 30, 1997 all of the outstanding Warrants of
the Company were exercised at an exercise price of $10.21 per
Warrant. The Company received a total of $119,779,768.73 by
issuing a total of 11,731,613 new Common Shares. There is a
total of 11,813,850 common shares in issue. Expenses in the
total amount of approximately $337,000 related to the Exercise of
the Warrants have been deducted from the proceeds of the
Exercise.
On October 6, 1997 the Company paid to the Charterer for
payment to Samsung Heavy Industries, the builder of the Vessels,
a total of $119,490,000 for final payment of the three Vessels.
Pursuant to an agreement (the "Management Agreement")
between the Company and the Manager; Ugland Nordic Shipping ASA,
the Manager provides certain management, administrative and
advisory services to the Company.
Vessels owned by the Company
Each Vessel acquired by the Company is a newly built,
approximately 150,000 dead-weight tonne ("dwt") double hull
Suezmax oil tanker built at the shipyard of Samsung Heavy
Industries Co., Ltd. (the "Builder") in Korea. The purchase
price of each Vessel is approximately $56.9 million per Vessel
(the "Original Contract Price"). The Vessels were delivered
4
<PAGE>
between August and December 1997 and have been designed according
to the specifications set forth in the shipbuilding contracts
between the Builder and the Company (the "Shipbuilding
Contracts"), which specifications were negotiated with the
Builder by BP Shipping Limited (the "Charterer") on behalf of the
Company. Pursuant to the Ship Construction Supervision Agreement
between the Charterer and the Company (the "Supervision
Agreement"), the Charterer was supervising the construction of
the Vessels on behalf of the Company. Pursuant to the
Supervision Agreement, the Charterer shall bear and pay for any
amount by which the actual purchase price for any Vessel exceeds
the Original Contract Price. The Charterer's obligations under
the Supervision Agreement are guaranteed by The British Petroleum
Company p.l.c. ("British Petroleum").
Each Vessel is registered in Bermuda and flies the
British flag.
Chartering Operations Commenced on September 30,1997
By their terms, each Vessel is chartered to the
Charterer pursuant to separate "hell and high water" bareboat
charters (the "Charters). The initial term of these charters is
from September 30, 1997 and will end approximately seven years
after the such Date, subject to extension at the option of the
Charterer for up to seven successive one-year periods. Under
each Charter, the Charterer is required to provide the Company
with at least twelve months' prior notice of each such extension.
Commencing in October 1997, the Company will pay dividends to the
holders of the Company's common shares, par value $0.01 per share
(the "Common Shares"), in amounts substantially equal to the
amounts received by it under the Charters, less expenses.
The daily charterhire rate payable under each Charter is
comprised of two components: (i) a fixed minimum rate of
charterhire of $13,500 per Vessel per day (the "Base Rate"), paid
quarterly in advance, and (ii) additional charterhire (which will
be determined and paid quarterly in arrears and may equal zero)
which would equal the excess, if any, of a weighted average of
the daily time charter rates for two round-trip trade routes
traditionally served by Suezmax tankers (Bonny, Nigeria to/from
the Louisiana Offshore Oil Port, and Hound Point, U.K. to/from
Philadelphia, Pennsylvania (the "Reference Ports")), over the sum
of (A) an agreed amount of $8,500 representing daily operating
costs and (B) the Base Rate ("Additional Hire"). The amount of
Additional Hire, if any, will be determined by the London Tanker
Brokers Panel or another panel of ship brokers mutually
acceptable to the Charterer and the Company (the "Brokers
Panel").
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Pursuant to the terms of the Charters, the Charterer's
obligation to pay charterhire is absolute, regardless whether
there is loss or damage to a Vessel of any kind or whether such
Vessel or any part thereof is rendered unfit for use or is
requisitioned for hire or for title, and regardless of any other
reason whatsoever. The Charterer is also obligated to indemnify
and hold the Company harmless from all liabilities arising from
the operation, design and construction of the Vessels prior to
and during the term of the Charters, including environmental
liabilities, other than liabilities arising out of the gross
negligence or willful misconduct of the Company.
The Charters will end approximately seven years after
the Exercise Date, unless extended as noted above. At least six
months prior to the end of the term (including any extension
thereof) of a Charter, the holders of the Common Shares will be
entitled to vote on a proposal to sell the related Vessel and to
distribute the net proceeds of such sale to the holders of the
Common Shares to the extent permitted under Bermuda law. The
Board of Directors of the Company (the "Board") will make a
recommendation as to that proposal, which recommendation may
favor such sale or an alternative plan, such as the operation,
rechartering or other disposition of the Vessel. The proposal to
sell the Vessel and distribute the resulting net proceeds shall
be adopted if approved by the holders of a majority of the Common
Shares voting at the meeting called for such purpose.
Nature of Trading Market
The primary trading market for the Common Shares is the
American Stock Exchange (the "AMEX"), on which the Warrants are
listed under the symbol NAT. The secondary trading market for
the Warrants is the Oslo Stock Exchange (the "OSE") also with the
symbol NAT.
6
<PAGE>
The high and low bid prices for the Common Share
(Warrant before September 30, 1997), by quarter, in 1996 and 1997
are as follows:
AMX AMX OSE OSE
Low High Low High
For the quarter ended:
March 31, 1996 USD 3 3/8 USD 4 3/8 NOK 21.00 NOK 23.00
June 30, 1996 USD 3 1/4 USD 4 1/4 NOK 20.00 NOK 24.00
September 30, 1996 USD 3 3/4 USD 4 3/4 NOK 22.00 NOK 27.00
December 31, 1996 USD 3 3/4 USD 4 1/2 NOK 24.00 NOK 28.00
March 31, 1997 USD 3 3/4 USD 4 5/8 NOK 24.00 NOK 30.00
June 30, 1997 USD 3 5/8 USD 5 NOK 25.00 NOK 34.00
September 30, 1997 USD 5 USD 7 5/8 NOK 35.00 NOK 48.00
December 31, 1997 USD 16 3/8 USD 19 1/8 NOK 110.00 NOK 130.00
These bid quotations represent interdealer quotations,
without retail mark-ups, mark-downs or commissions, and do not
necessarily represent actual transactions.
On December 31, 1997, the closing price of the Common
Share as quoted on the AMEX was USD 16 3/8, and as quoted on the
OSE was NOK 110.00. On such date, there were 11,813,850 Common
Shares issued and outstanding.
SELECTED FINANCIAL INFORMATION
The following balance sheet as of December 31, 1997 and
Income Statement for the period January 1, 1996 through
December 31, 1997, have been derived from the Financial
Statements of the Company which are included herein and which
have been audited by Deloitte & Touche, independent auditors,
whose report thereon is also included herein. The balance sheet
information provided below should be read in conjunction with the
accompanying Financial Statements and the related notes thereto,
and the discussion under Management's Discussion and Analysis of
Financial Condition and Results of Operations herein.
7
<PAGE>
BALANCE SHEET INFORMATION
DECEMBER 31,1997
ASSETS:
Cash and cash on deposit $ 19,499
Bare-Boat hire receivable 1,499,380
Prepaid Insurance 95,836
Vessels 169,068,163
Total Assets $170,682,878
============
LIABILITIES
Dividend payable $ 1,181,385
SHAREHOLDER'S EQUITY:
11,813,850 common shares, par value
$0.01 per share, outstanding,
50 million authorized $ 118,138
Legal reserves $169,383,355
Total liabilities and equity $170,682,878
============
INCOME STATEMENT INFORMATION JANUARY 1, 1997
THROUGH DECEMBER 31,1997
Revenue $5,265,880
Ship brokers commission $ 47,081
_____________________________________________________________
Net income $5,218,799
Management fee & Misch. administration cost $ 461,674
Depreciation $1,707,807
_____________________________________________________________
Net operating income $3,049,318
Net financial items $ 147,174
NET PROFIT FOR THE YEAR $3,196,492
=============================================================
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
On September 30, 1997 all of the outstanding Warrants of
the Company were exercised at an exercise price of $10.21 per
Warrant. The Company received a total of $119,779,768.73 by
issuing a total of 11,731,613 new Common Shares. There is a
total of 11,813,850 common shares in issue. Expenses in the
total amount of approximately $371,000 related to the Exercise of
the Warrants have been deducted from the proceeds of the
exercise.
On October 6, 1997 the Company paid to the Charterer for
payment to Samsung Heavy Industries, the builder of the Vessels,
a total of $119,490,000 for final payment of the three Vessels.
BP Shipping Ltd has agreed to charter each Vessel for a
period of seven years from September 30, 1997. Each Charter is
subject to extension at the option of the Charterer for up to
seven successive one-year periods. During the term of each
Charter (including any extension thereof) the Charterer is
obligated to pay (i) the Base Rate, which is charterhire at a
fixed minimum daily rate of $13,500 per Vessel per day (T/C
equivalent of $22,000 per day), payable quarterly in advance and
(ii) Additional Hire, to the extent spot charter rates exceed
certain levels, payable quarterly in arrears commencing in
January 1998. The amount of Additional Hire for each quarter, if
any, will be determined by the Brokers Panel.
On September 30, 1997 the Company received $3,766,500 in
minimum Charter Hire from the Charterer for the period from
September 30 up to December 31, 1997. In January 1998 the
Brokers Panel determined that the Additional Hire for the period
September 30 to December 31, 1997 was $5,374 per day per Vessel.
The total Charter Hire for the period was thus $5,265,880 or
$18,874 per day per Vessel (T/C equivalent of $27,374 per day per
Vessel)
On December 31, 1997 the Company received $3,645,000 in
minimum Charter Hire from the Charterer for the period from
January 1 up to March 31, 1998.
Results of Operations
The Company had no revenue for the period from
January 1, 1997 through September 30, After the Exercise Date its
revenues consists of the Charter Hire payable under the Charters.
The Company's revenues from the charter hire for the period
September 30 to December 31 came from the minimum hire of
9
<PAGE>
$3,766,500 ($13,500 per day per Vessel) and the determined
additional hire of $1,499,380 ($5,374 per day per Vessel). Total
charter hire for the period from September 30 to December 31 was
$5,265,880.
Net costs including interest income during the report
period were $2,069,388 of which three months depreciation of the
Vessels constitutes $1,707,807.
Liquidity and Capital Resources
Total assets and total shareholders' equity of the
Company at December 31, 1997 was $170,682,878 compared to
$51,599,679 at December 31, 1996. The change was due to the net
proceeds from the exercise of Warrants and the Charter Hire for
the first three months received from the Charterer and accrued
result.
Dividend payment
Based on the minimum base rate for the first period from
September 30 to December 31, 1997, the Board of Directors
declared on October 14, 1997 a dividend payment of $0.30 per
Common Share in the Company. The dividend payment of a total of
$3,544,155 was made on November 10, 1997. Based on the
determined Additional Hire of $1,499,380 from the first period in
1997 and the minimum base rate for the second period from
January 1 to March 31, 1998 the Board of Directors declared in
January 1998 a dividend of $1,181,385 ($0.10 per share) and
$3,544,155 ($0.30 per share) respectively. The total dividend
payment made on February 10, 1998 was thus $4,725,540 ($0.40 per
share).
Total dividend for the year 1997 was $ 4,725,540.
DIRECTORS AND OFFICERS
Directors and Senior Management of the Company and the Manager
Pursuant to the Management Agreement, the Manager
provides management, administrative and advisory services to the
Company with respect to the Vessels.
Set forth below are the names and positions of the
directors and executive officers of the Company and the Manager.
Directors of both the Company and the Manager are elected
annually, and each director elected holds office until a
successor is elected. Officers of both the Company and the
Manager are elected from time to time by vote of the respective
board of directors and hold office until a successor is elected.
10
<PAGE>
The Company
Name Age Position
Herbjorn Hansson 50 Director and President
John D. Campbell 55 Director and Secretary
Niels Erik Feilberg 36 Vice President and Treasurer
Tharald Brovig 55 Director
Hon. Sir David Gibbons 70 Director
George C. Lodge 70 Director
Axel Stove Lorentzen 45 Director
Andreas Ove Ugland 43 Director
The Manager
Name Age Position
Arve Andersson 43 Director
Eivind H. Astrup Director
Herbjorn Hansson 50 Director; President and
Chief Executive Officer
Axel Stove Lorentzen 45 Director
Tharald Brovig 55 Director
Njal Hansson 55 Director
Christian Rytter Jr. 42 Director
Andreas Ove Ugland 43 Director, Chairman
Certain biographical information with respect to each
director and executive officer of the Company and the Manager is
set forth below.
Herbjorn Hansson has been President and Chief Executive
Officer of the Company and of the Manager since July 1995 and
September 1993, respectively, and has served as a director of the
Manager since its organization in June 1989 and as a director of
the Company since July 1995. Mr. Hansson formerly served as the
Chairman of the Board of the Manager from June 1989 to September
1993. Mr. Hansson has been involved in various aspects of the
shipping industry and international finance since the early
1970s, including serving as Chief Economist of Intertanko, the
International Association of Tanker Owners and independent
operators, from 1975-1980. He was an officer of the Anders
Jahre/Kosmos Group from 1980 to 1989, serving as Chief Financial
Officer from 1983 to 1988.
John D. Campbell has been Secretary of the Company and a
director of the Company since July 1995. Mr. Campbell has been
the Senior Partner of the law firm of Appleby, Spurling & Kempe,
Bermuda counsel to the Company, since December 1987.
Mr. Campbell has also served as a director of ADT Limited (new
11
<PAGE>
Tyes International Limited), from September 1984 to August 1991
and Sea Containers Limited since February 1980.
Niels Erik Feilberg has been Vice President and
Treasurer of the Company since July 1995 and has been Vice
President of Finance of the Manager since 1994. He was working
in the Treasury Department of Anders Jahre/Kosmos Group from 1987
and in the same area in the Skaugen Group from 1989 to the end of
1993.
Tharald Brovig has been a director of the Company since
July 1995 and has been a director of the Manager since its
organization in June 1989.
Sir David Gibbons has been a director of the Company
since September 1995. Sir David served as the Prime Minister of
Bermuda from August 1977 to January 1982. Sir David has served
as Chairman of The Bank of N.T. Butterfield and Son Limited since
1986 and as Chief Executive Officer of Edmund Gibbons Ltd. since
1954.
George C. Lodge has been a director of the Company since
September 1995. Professor Lodge has been a member of the Harvard
Business School faculty since 1963. He was named associate
professor of business administration at Harvard in 1968 and
received tenure in 1972.
Axel Stove Lorentzen has been a director of the Company
since September 1995. Mr. Stove Lorentzen has also served as a
director and Chairman of the Manager since May 1991 and September
1993 to June 1996, respectively, a director and Chairman of
Lorentzen & Stemoco A/S since January 1981 and November 1994,
respectively, and as a director of Skipskredittforeningen AS from
March 1988 to May 1996. Mr. Stove Lorentzen formerly served as a
director of Grand Hotel A/S from May 1986 to October 1993 and a
director of Belships Company Ltd. Ships A/S from February 1984 to
June 1993.
Njal Hansson has been a director of the Manager since
its organization in June 1989. Mr. Hansson is a private investor
and owns the company Siving, Njal Hansson A/S is a company
engaged in the importing and distribution of consumer electronics
in Norway. Mr. Hansson is the brother of Herbjorn Hansson.
Arve Andersson has been a director of the Manager since
June 1996. Mr. Andersson is a director of Andreas Ugland & Sons
AS.
Eivind Astrup has been a director of the Manager since
December 1997. Mr. Astrup is the President of Seabulk AS, a
shipowning company in Norway.
12
<PAGE>
Andreas Ove Ugland has been a director of the Company
since February 1997. Mr. Ugland has also served as director and
Chairman of: Ugland International Holding Plc, a
shipping/transport company listed on the London Stock Exchange,
Andreas Ugland & Sons AS, Grimstad, Norway, Hoegh Ugland
Autoliners AS, Oslo and Buld Associates Inc., Bermuda.
Mr. Ugland has had his whole career in shipping in the Ugland
family owned shipping group.
Christian Rytter Jr. has been a director of the Manager
since May 1996. Mr. Rytter is Managing Director of
L.Giil-Johannessen AS and is also Chairman of Seabulk a.s.
COMPENSATION OF DIRECTORS AND OFFICERS
Pursuant to the Management Agreement, the Manager will
pay from the Management Fee the annual directors' fees of the
Company, currently estimated at an aggregate amount of $60,000
per annum.
From the inception of the Company through December 31,
1997, an aggregate of $0 has been paid to the Company's directors
and executive officers as a group for services rendered by them
to the Company in all capacities.
INTEREST OF MANAGEMENT IN CERTAIN TRANSACTIONS
The Manager owns 1,762,471 Common Shares in the Company
as of the date hereof and has entered into the Management
Agreement with the Company, pursuant to which the Manager is
entitled to a management fee of $250,000 per annum.
ADDITIONAL INFORMATION
The Company will file with the Securities and Exchange
Commission an Annual Report on Form 20-F. A copy of such report
is available without cost to each shareholder.
The British Petroleum Company p.l.c. 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
13
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NORDIC AMERICAN TANKER SHIPPING LIMITED
TABLE OF CONTENTS.
_______________________________________________________________
Page
INDEPENDENT AUDITORS' REPORT F-1
FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER 31, 1997 AND FOR THE PERIOD FROM
JANUARY 1, 1996 THROUGH DECEMBER 31, 1996:
Balance Sheets F-2
Statement of Operations F-3
Statements of Cash Flows F-4
Notes to Financial Statements F-5 & F-6
<PAGE>
Deloitte & Touche
(LOGO)
Rodhusgt. 1, PO. Box 35
3101 Tonsberg, Norway
Telephone: (47) 33 30 06 00
Facsimile: (47) 33 30 06 06
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of
Nordic American Tanker Shipping Limited
Bermuda
We have audited the accompanying balance sheets of Nordic
American Tanker Shipping Limited as of December 31, 1997 and the
related statements of operations, shareholders' equity and cash
flows for the year ended December 31, 1997. These financial
statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on the financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all
material respects, the financial position of Nordic American
Tanker Shipping Limited as of December 31, 1997 and the results
of its operations and its cash flows for the year ended
December 31, 1997 in conformity with generally accepted
accounting principles.
/s/ Deloitte & Touche
April 15, 1998
Deloitte Touche
Tohmatsu
International
F-1
<PAGE>
BALANCE SHEET AT DECEMBER 31
ASSETS 1997 1996
Current assets
Bank deposits note 2 19,499 83,275
Bare-Boat-hire receivable 1,499,380 0
Deferred Management Fee 0 111,644
Prepaid insurance 95,836 180,000
----------- ---------
Total current assets 1,614,715 374,919
----------- ---------
Long-term assets
Vessels note 1 169,068,163 51,224,760
----------- ----------
TOTAL ASSETS 170,682,878 51,599,679
=========== ==========
LIABILITIES AND EQUITY
Liabilities
Dividend payable 1,181,385 0
----------- ----------
Equity
Share capital (11,813,850
shares @ 0.01) note 4 118,138 12,822
Legal reserves note 4 169,383,355 51,586,857
----------- ----------
Total equity 169,501,493 51,599,679
----------- ----------
TOTAL LIABILITIES AND EQUITY 170,682,878 51,599,679
=========== ==========
F-2
<PAGE>
NORDIC AMERICAN TANKER SHIPPING Ltd.
PROFIT AND LOSS ACCOUNT
All figures in USD 1997 1996
Bare-Boat-hire 5,265,880 0
Commission paid (47,081) 0
----------- ----------
Net income 5,218,799 0
----------- ----------
Administration costs (461,674) (430,000)
Depreciation note 1 (1,707,807) 0
----------- ----------
Net operating income 3,049,318 (430,000)
=========== ==========
Financial income / expenses
Interest income 147,504 0
Bank charges (330) 0
----------- ----------
Net financial income 147,174 0
----------- ----------
NET PROFIT FOR THE YEAR 3,196,492 (431,000)
=========== ==========
Allocation of current year net profit
Dividend paid as of December 31,
1997 (3,544,155) 0
Dividend accrued as of December 31,
1997 (1,181,385)
Transfer from legal reserves 1,529,048 0
F-3
<PAGE>
NORDIC AMERICAN TANKER SHIPPING LIMITED
STATEMENT OF CASH FLOWS 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit (loss) $ 3,196,492 ($430,000)
Dividends ($ 4,725,540) $ 0
Depreciation $ 1,707,807 $ 0
Increase in receivables and payables ($ 122,187) $ 70,000
------------ ---------
Net cash used in operating activities $ 56,572 ($360,000)
------------ ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in vessels ($119,551,210) $ 0
------------ ---------
Cash flows used in investing
activities ($119,551,210) $ 0
------------ ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock $119,430,862 $ 0
Additional warrant issuance cost $ 0 ($ 54,678)
------------ ---------
Cash flows provided by financing
activities $119,430,862 ($ 54,678)
------------ ---------
NET (DECREASE) INCREASE IN CASH ($ 63,776) ($414,678)
CASH AND CASH EQUIVALENT, BEGINNING
OF YEAR $ 83,275 $ 497,953
------------ ---------
CASH AND CASH EQUIVALENT, END OF YEAR $ 19,499 $ 83,275
============ =========
F-4
<PAGE>
NORDIC AMERICAN TANKER SHIPPING LIMITED
NORDIC AMERICAN TANKER SHIPPING LIMITED
NOTES TO FINANCIAL STATEMENTS
PERIOD JANUARY 1, 1997 THROUGH DECEMBER 31,1997
_______________________________________________
Note 1 : Depreciation
Depreciation is calculated on a straight-line basis over the
estimated lifetime of 25 years.
Cost price Booked value
Vessels 1997 Depreciation Dec. 31, 1997
- ------- ---------- ------------ -------------
BRITISH HARRIER 56,926,900 (569,269) 56,357,631
BRITISH HAWK 56,926,900 (569,269) 56,357,631
BRITISH HUNTER 56,922,170 (569,269) 56,352,901
_______________ ___________ ___________ ___________
Total 170,775,970 (1,707,807) 169,068,163
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash on Deposit - Cash and cash on deposit consists
of all cash and demand deposits with a maturity of three
months or less.
Income and Expenses - The Company accounts for all income and
expenses using the accrual method of accounting.
Income taxes - The Company is not subject to taxation in the
United States of America.
3. RELATED PARTY TRANSACTION
The Company has entered into a management agreement with
Ugland Nordic Shipping ASA (UNS) under which UNS will provide
certain administrative, management and advisory services to
the Company for an amount of $250,000 per year. In addition,
a fee of $1.85 million was in 1995 paid by the Company to UNS
on the date of the issuance of the warrants in consideration
F-5
<PAGE>
for certain of UNS' previous activities on behalf of the
Company prior to the consummation of the offering.
This fee was included as part of the offering costs in 1995.
Note 4
STATEMENTS OF SHAREHOLDER'S EQUITY
YEAR ENDED DECEMBER 31, 1997 AND 1996
Common Stock Class B Stock Legal
Issued Issued Reserves
Shares Amount Shares Amount
BALANCE DECEMBER 31, 1995 82,237 822 12,000 12,000 52,071,535
Net loss 1996 -430,000
Warrant issue cost -54,678
_____________________________________________________________________________
BALANCE DECEMBER 31, 1996 82,237 822 12,000 12,000 51,586,857
_____________________________________________________________________________
Repurchase of B Stock -12,000 -12,000
Exercise of Warrants to Common
stock 11,731,613 117,316 119,662,453
Common stock issue cost -336,907
Transfer from legal reserves
to dividend -1,529,048
_____________________________________________________________________________
BALANCE DECEMBER 31, 1997 11,813,850 118,138 0 0 169,383,355
F-6
<PAGE>
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 6, 1998 By: /s/ Herbjorn Hansson
_________________________
Herbjorn Hansson
President and Chief
Executive Officer
7
01318002.AU9
