<PAGE>
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 October, 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
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein is a copy of the press release of
Nordic American Tanker Shipping Limited (the "Company") issued on
October 1, 1998 relating to a cash distribution to shareholders
of record as of October 27, 1998 and a copy of the report to
shareholders for the quarter ended September 30, 1998 containing
certain unaudited financial information and a Management's
Discussion and Analysis of Financial Condition and Results.
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.
<PAGE>
NORDIC AMERICAN TANKER SHIPPING LTD (NAT) - ANNOUNCES QUARTERLY
DIVIDEND OF USD 0.30
Summary
Hamilton, Bermuda. NAT has declared a dividend of USD 0.30 for
the fourth 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 fourth
quarter of 1998, NAT has distributed USD 1.43 to its shareholders
for 1998.
The dividend of USD 0.30 will be paid on or about November 12 to
shareholders of record as of October 27, 1998.
NAT paid a dividend of USD 0.40 in the first quarter of 1998, USD
0.41 in the second quarter of 1998 and USD 0.32 in the third
quarter of 1998.
The three NAT vessels are on "hell or high water" bareboat
charters to BP Shipping for a minimum of 7 years. Under the
charters, NAT receives charterhire based on a formula derived
from the spot market for suezmax tankers on two round trip trade
routes traditionally served by suezmax tankers. The minimum rate
is USD 13,500/day/vessel, or USD 22,000/day/vessel (timecharter
("T/C")equivalent) after taking into account agreed operating
expenses of USD 8,500/day.
For the third quarter of 1998, BP will not pay any additional
hire above the base rate as the average spot market for the third
quarter has not exceeded the minimum level.
Background
NAT's three double hull tankers were delivered from the yard in
Korea in 1997 and commenced their charters to BP Shipping on
October 1, 1997. The decision to pay dividends for the fifth
time since October 1997 is a result of NAT receiving the minimum
hire for the fourth quarter of 1998 and no additional hire for
the third quarter. The additional hire for the tankers in each
three month period is calculated based upon market conditions for
tankers of similar size and age on certain routes, based upon an
agreed formula. The minimum hire is paid in advance, quarterly,
whilst the additional hire is paid in arrears quarterly.
2
<PAGE>
On December 31, 1998, BP Shipping will pay hire for the first
quarter of 1999, based upon the minimum rate. Whether there will
be any additional hire for the fourth quarter of 1998 will be
dependent 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, British Petroleum Company Plc.
A portion of the dividend paid by NAT may be deemed a return of
capital for US 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 of NAT.
Tender offer
The Board of Directors has approved a submission to NAT's
shareholders of a proposal to allow NAT to incur debt and to use
the proceeds to conduct a tender offer for a part of NAT's
outstanding common shares (the "Shares"). The proposal is
expected to be submitted to NAT's shareholders at a special
meeting in November, following preparation and circulation of
proxy statements. NAT currently expects to enter into a loan
facility in the approximate amount of $30 million and to conduct
a "Dutch Auction" self-tender offer for its Shares with the
proceeds, at a price range to be determined. Conduct of the
self-tender offer will be subject to shareholder approval of an
amendment to the Company's Bye-Laws to allow NAT to incur debt
and applicable regulatory approvals.
Shareholders of record as of October 27, 1998 whether tendering
their Shares or not, will receive the above dividend.
Sandefjord, Norway October 14th 1998
Contacts: Herbjorn Hansson
Niels Erik Feilberg
Ugland Nordic Shipping ASA
Sandefjord, Norway
Tel.: (47)-33-42 15 00
Fax : (47)-33-42 15 45
3
<PAGE>
Gary J. Wolfe
Seward & Kissel
New York, USA
Tel.: (1) 212-574-1223
Fax : (1) 212-480-8421
4
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS AS OF
September 30, 1998
Overview
In September 1995, the Company offered and sold to the
public 11,731,613 warrants (each, a "Warrant") at the initial
public offering price of $5.00 per Warrant. The exercise price
of a Warrant was $10.21. Prior to September 30, 1997 (the
"Exercise Date"), the Company did not have any operations other
than certain limited operations related to the acquisition of
three modern double hull 150,000 dead weight tonne suezmax
tankers (the "Vessels"), which were delivered in the last half of
1997. The Vessels were built at Samsung Heavy Industries.
On the Exercise Date 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 (the "Shares").
There is a total of 11,813,850 Shares in issue.
BP Shipping Ltd (the "Charterer") 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, from January 1998.
The amount of Additional Hire for each quarter, if any, will be
determined by the Brokers Panel.
On June 30, 1998 the Company received $3,726,000 in Base
Hire from the Charterer for the period from July 1 to September
30, 1998. In October 1998, the Brokers Panel determined that
there would be no Additional Hire for the period July 1 to
September 30, 1998. The total charterhire for the period was
thus $3,726,000 or $13,500 per day per Vessel (timecharter
("T/C") equivalent of $22,000 per day per Vessel). Charterhire
(T/C equivalent) in the 1st quarter and 2nd quarter of 1998 was
$26,632 and $22,000 per day per Vessel respectively.
On September 30, 1998 the Company received $ 3,726,000
in Base Hire from the Charterer for the period from October 1 to
December 31, 1998.
5
<PAGE>
Results of Operations
The Company's revenues from the charterhire for the
period January 1 to September 30, 1998 derived from the Base Hire
of $11,056,500 ($13,500 per day per Vessel) and Additional Hire
for the three month period of January 1 to March 31, 1998 of
$1,250,640 ($4,632 per day per Vessel). Total charterhire for
the period from January 1 to September 30 was $12,307,140 (T/C
equivalent of $23,527 per day per Vessel).
Net costs during the period from January 1 to September
30, 1998, were $5,481,937 of which nine months depreciation of
the Vessels constitute $5,123,421.
Liquidity and Capital Resources
Total Assets of the Company at September 30, 1998 were
$164,099,739 compared to $170,682,878 at December 31, 1997. Cash
held at September 30, 1998 was $154,997.
Dividend payment
Based on 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 Share, paid to shareholders on February 10, 1998.
Based on 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 Share, paid to
shareholders in May 1998.
Based on the minimum Base Hire for the 3rd quarter of
1998, from July 1 to September 30,1998 and no Additional Hire for
the 2nd quarter, the Board of Directors declared in July 1998 a
dividend of $3,780,432 or $0.32 per Share, paid to shareholders
in August 1998.
Based on the minimum Base Hire for the 4th quarter of
1998, from September 30 to December 31, 1998 and no Additional
Hire for the 3rd quarter, the Board of Directors declared in
October 1998 a dividend of $3,544,155 or $0.30 per Share, to be
paid to shareholders in November 1998.
Total dividend paid in 1998 will be $15,712,420.50 or
$1.43 per Share.
6
<PAGE>
Leveraging and repurchase of Common Stock
On September 10, 1998 the Company announced that its
Board of Directors had approved the submission to the Company's
shareholders of a proposal to allow the Company to incur debt and
to use the proceeds to conduct a tender offer for the Company's
outstanding shares. The proposal is expected to be submitted to
the Company's shareholders at a special meeting in November,
following preparation and circulation of proxy statements. The
Company currently expects to enter into a loan facility in the
approximate amount of $30 million and to conduct a "Dutch
Auction" self-tender offer for its shares with the proceeds, at a
price range to be determined. Conduct of the self-tender offer
will be subject to shareholder approval of an amendment to the
Company's Bye-Laws to allow the Company to incur debt and
applicable regulatory approvals.
7
<PAGE>
BALANCE SHEET INFORMATION
September 30, 1998
ASSETS
Cash and cash on deposit $ 154,997
Bare-Boat hire receivable $ 0
Prepaid insurance $ 0
Vessels $ 163,944,742
--------------------------------------------------------
Total Assets $ 164,099,739
LIABILITIES
Dividend payable $ 0
SHAREHOLDER'S EQUITY
11,813,850 Common Shares, par value $ 118,138
$0.01 per share, outstanding
50 million authorized
Legal reserves $ 163,981,601
--------------------------------------------------------
Total liabilities & equity $ 164,099,739
INCOME STATEMENT INFORMATION NINE MONTHS ENDED
September 30, 1998
Revenue $ 12,307,140
Ship Broker commission $ (138,207)
Management Fee Expense $ (187,500)
Insurance Expense $ (95,836)
Depreciation $ (5,123,421)
Net financial items $ 63,027
--------------------------------------------------------
Net profit $ 6,825,203
8
01318006.AA2
