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Commission File No. 1-13944
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 July, 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
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INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein are (1) a copy of the press release of
Nordic American Tanker Shipping Limited (the "Company") issued on
July 14, 1998 relating to a cash distribution in the amount of
$0.32 to be made on or about August 12, 1998, to shareholders of
record as of July 27, 1998, and (2) a copy of the Company's
quarterly report for the quarter ended June 30, 1998, containing
certain unaudited financial information and a Management's
Discussion and Analysis of Financial Condition and Results of
Operation.
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.
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July 14, 1998
NORDIC AMERICAN TANKER SHIPPING LTD (NAT) - ANNOUNCES QUARTERLY
DIVIDEND OF USD 0.32
Summary
NAT has declared a dividend of USD 0.32 for the third quarter
of 1998.
NAT's policy is to pay dividends every quarter. Assuming
receipt by NAT of charterhire from BP Shipping at the minimum
rate and no other expenses or reserves by NAT that are withheld
from any distribution, NAT will be able to distribute to its
shareholders a minimum of USD 1.20 per annum as long as the ships
are on charter to BP Shipping. Whether the dividends may exceed
USD 1.20 per annum depends upon the spot charter market for
modern suezmax tankers. Including the declared dividend for the
third quarter of 1998, NAT expects to distribute at least USD
1.43 to its shareholders for 1998.
The dividend of USD 0.32 will be paid about August 12 to
shareholders of record as of July 27, 1998.
NAT paid a dividend of USD 0.40 the first quarter of 1998 and
USD 0.41 in the second quarter of 1998.
The three NAT vessels are on bareboat hell or high water
charter to BP Shipping for a minimum of 7 years. Under the
charter, NAT receives charter hire based on a formula derived
from the spot market for suezmax tankers on certain specific
routes. The minimum rate is USD 13,500/day/vessel, or USD
22,000/day/vessel (timecharter equivalent) after taking into
account agreed operating expenses of USD 8,500/day.
For the second quarter of 1998, BP will not pay any
additional hire above the base rate as the average spot market
for the second quarter has not exceeded this level.
Background
The company's three double hull tankers were delivered from
the yard in Korea in 1997 and commenced their charter to BP
Shipping on October 1, 1997. The decision to pay dividend for
the fourth time since October 1997 is resulting from the company
receiving the minimum hire for the third quarter of 1998.
The additional hire for the tankers in each 3 months period
is calculated based upon market conditions for tankers of
similar size and age on certain routes, based upon an agreed
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formula. The minimum hire is paid in advance, quarterly, whilst
the additional hire is paid in arrears quarterly.
In October 1998 BP Shipping will pay hire for the fourth
quarter of 1998, based upon the minimum rate. Whether there will
be any additional hire for the third quarter of 1998, will be
dependant upon market conditions for suezmax tankers on the
routes which are included in the freight formula.
The structure of paying the minimum rate in advance every
quarter and a possible additional rate in arrears each quarter
has been agreed and is expected to be continued through the
contract period of minimum 7 years and maximum 14 years.
The contracts with BP Shipping are guaranteed by its parent
company, The British Petroleum Company Plc.
A portion of the dividend paid by NAT may be deemed a return
of capital for U.S. income tax purposes. Relevant tax information
is expected to be distributed to US shareholders in February
1999.
Ugland Nordic Shipping (UNS), an Oslo Stock Exchange listed
company holding 15 % of the shares in NAT, is manager for NAT.
Sandefjord, Norway, July 14th 1998
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MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS AS OF
June 30, 1998
Overview
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.
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 March 31, 1998 the Company received $3,685,500 in Base
Hire from the Charterer for the period from March 1 up to June
30, 1998. In July 1998 the Brokers Panel determined that there
was to be no Additional Hire for the period March 1 to June 30,
1998. The total Charter Hire for the period was thus $3,685,500
or $13,500 per day per Vessel (T/C equivalent of $22,000 per day
per Vessel). T/C hire in 1st quarter 1998 was $26,632 per day per
Vessel.
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On June 30, 1998 the Company received $ 3,726,000 in Base
Hire from the Charterer for the period from July 1 up to
September 30, 1998.
Results of Operations
The Company's revenues from the Charter Hire for the period
January 1 to June 30 came from the Base Hire of $7,330,500
($13,500 per day per Vessel) and the determined Additional Hire
for the three months period of January 1 to March 31 1998 of
$1,250,640 ($4,632 per day per Vessel). Total Charter Hire for
the period from January 1 to June 30 was $8,581,140 (T/C
equivalent of $24,303 per day per Vessel.
Net costs during the Report Period were $3,644,724 of which
six months depreciation of the Vessels constitute $3,415,614.
Liquidity and Capital Resources
Total Assets and Total Shareholders Equity of the Company at
June 30, 1998 was $165,941,324 compared to $168,860,566 at March
31, 1998. Cash held at June 30 1998 was $256,939.
Dividend payment
Based on the determined Additional Hire of $1,499,380 for the
4th quarter of 1997 and the minimum Base Hire of $3,544,155 for
the 1st quarter of 1998, from January 1 to March 31, the Board of
Directors declared in January 1998 a Dividend of $4,725,540 or
$0.40 per Common Share, paid to Shareholders on February 10,
1998.
Based on the determined Additional Hire of $1,499,380 from
the 1st quarter of 1998 and the minimum Base Hire for the 2nd
quarter of 1998, from April 1 to June 30, the Board of Directors
declared in April 1998 a Dividend of $4,843,678 or $0.41 per
Common Share, to be paid to Shareholders in May 1998.
Based on the minimum Base Hire for the 3rd quarter of 1998,
from July 1 to September 30, the Board of Directors declared in
July 1998 a Dividend of $3,780,432 or $0.32 per Common Share, to
be paid to Shareholders in August 1998.
Total paid out Dividend in 1998 per June 30 1998 is so far
$12,168,265.50 or $1.13 per Common Share. Minimum paid out
Dividend in 1998 will thus be $1.43 per Common Share.
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BALANCE SHEET INFORMATION
June 30, 1998
ASSETS
Cash and cash on deposit $ 256,939
Bare-Boat hire receivable $ 0
Prepaid insurance $ 31,836
Vessels $165,652,549
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Total Assets $165,941,324
LIABILITIES
Dividend payable $ 0
SHAREHOLDERS EQUITY
11,813,850 Common Shares, par value $ 118,138
$0.01 per share, outstanding
50 million authorized
Legal reserves $165,823,186
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Total liabilities & equity $165,941,324
INCOME STATEMENT INFORMATION SIX MONTHS ENDED
June 30, 1998
Revenue $ 8,581,140
Ship Broker commission $ (91,632)
Management Fee Expense $ (125,000)
Insurance Expense $ (64,000)
Depreciation $(3,415,614)
Net financial items $ 51,522
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Net profit $ 4,936,416
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Contacts: Herbjorn Hansson/
Niels Erik FeilbezS
Ugland Nordic Shipping ASA
Sandefiord, Norway
Tel.: (47)-33-42 15 00
Fax : (47)-33-42 15 45
Gary J. Wolfe
Seward & Kissel
New York, USA
Tel.: (1)-212-574-1223
Fax : (1)-212-480-8421
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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: July 15, 1998 By: /s/ Herbjorn Hansson
_________________________
Herbjorn Hansson
President and Chief
Executive Officer
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01318002.AV0
