Bermuda-incorporated Suezmax owner Nordic American Tankers (NAT) ended the first quarter of this year with a widened net loss year over year.

The company posted net loss of USD 18.7 million in Q1 2018, compared to net loss of 3.4 million seen in the corresponding period a year earlier.

However, when compared to Q4 2017’s net loss of USD 151.4 million, loss was considerably narrowed in the first quarter of this year.

Net voyage revenue decreased to USD 29.6 million in the quarter ended March 31, 2018, from USD 55.2 million recorded in Q1 2017.

During the quarter, the time charter equivalent for NAT vessels was USD 11,200 per day per ship.

“Going forward, prospects are good for NAT. The world economy is enjoying its strongest upswing since 2010. What is good for the world economy, is positive for NAT,” the company said.

The company intends to replace the existing revolving credit facility with a new financing. The recapitalization program is expected to be finalized by the end of the second quarter of 2018. As explained, the recapitalization, when completed, should improve the company’s financial flexibility going forward.

“NAT is well positioned when the tanker market improves. The historic average market rate for the last 25 years was about USD 30,000 per day per Suezmax vessel. Such earnings would give a free cashflow from NAT’s operations of about USD 160 million per year, which would pay back today’s market capitalization of NAT in less than 2 years. In contrast, a Suezmax vessel may trade for 25 years,” the company added.

Earlier this month, NAT unveiled plans to sell two ships, thus reducing its fleet to 31 tankers.

“This fleet adjustment must be seen in light of our three new vessels for delivery early July, end of August and end of October this year,” NAT explained.

Currently, NAT fleet comprises 33 Suezmaxes — including three newbuilds — with an aggregate cargo capacity of 33 million barrels of crude oil.