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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, 1999
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 is a copy of the press release of
Nordic American Tanker Shipping Limited (the "Company") issued on
October 1, 1999 relating to a cash distribution to shareholders
of record as of October 27, 1998.
ADDITIONAL INFORMATION
BP Amoco Plc 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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FOR IMMEDIATE RELEASE
NORDIC AMERICAN TANKER SHIPPING LTD (NAT) ANNOUNCES
QUARTERLY DIVIDEND OF $0.36
Summary
NAT (AMEX:NAT)(OSE:NAT) has declared a dividend of $0.36 for the
fourth quarter of 1999. This is the ninth consecutive dividend
payment since the Company commenced its operations on October 1,
1997.
NATs 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 $1.35 per annum as long as the vessels are on
charter to BP Shipping. Whether the dividends may exceed $1.35
per annum depends upon the spot charter market for modern suezmax
tankers.
The dividend of $0.36 will be paid on or about November 12 to
shareholders of record as of October 27, 1999. In February, May
and August 1999 NAT paid a dividend per share of $0.32, $0.32 and
$0.35 respectively. Total dividend paid in 1999 is thus $1.35.
In 1998 NAT paid a total dividend of $1.43 per share.
The three NAT vessels are on hell or high water bareboat charter
to BP Shipping for a minimum of 7 years. Under the charter, 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
$13,500/day/vessel, or $22,000/day/vessel (timecharter
equivalent) after taking into account agreed operating expenses
of $8,500/day.
For the third quarter of 1999, BP Shipping 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
NATs three double hull tankers were delivered from the yard in
Korea in 1997 and commenced their charters to BP Shipping on
October 1st 1997. The decision to pay dividend for the ninth time
since October 1997 is a result of NAT receiving the minimum hire
for the fourth quarter of 1999 and no additional hire for the
third quarter of 1999. The additional hire for the tankers in
each 3 month period is calculated based upon market conditions
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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.
On January 1, 2000, BP Shipping is scheduled to pay hire for the
first quarter of 2000, based upon the minimum rate. Whether
there will be any additional hire for the fourth quarter of 1999
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 from October 1997.
The contracts with BP Shipping are guaranteed by its parent
company, BP Amoco P.l.c.
Ugland Nordic Shipping ASA (UNS), an Oslo Stock Exchange listed
company holding 21.1% of the shares in NAT, is the manager of
NAT.
Sandefjord, Norway, October 4th 1999
Contacts: Herbjorn Herbjorn Hansson
Niels Erik Feilberg
Ugland Nordic Shipping ASA
Sandefjord, 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: October 8, 1999 By: /s/ Herbjorn Hansson
_________________________
Herbjorn Hansson
President and Chief
Executive Officer
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01318002.AW6
