Hamilton, Bermuda, August 21, 2017
Dear Shareholder,
In beginning of July this year, we secured a medium term employment for one of our vessels, i.e. seven months firm + three months options at a rate of $7,200 per day. Thereafter, we have concluded 15 new fixtures in July with rates in the range of $7,200 - $21,000 per day. So far in August, we have concluded eight new fixtures between $8,700 and $30,000 per day.
The UK Platform Supply Vessel (PSV) market is currently stronger than the market on the Norwegian Continental Shelf. We have all our seven operating vessels in the UK sector of the North Sea. Three ships are in lay-up and ready to be reactivated if required.
Going forward, we are hopeful that we can conclude fixtures at higher rates than in the first half of this year. The market is volatile by nature. We do not predict how long the stronger market will last - the longer the better.
All British Pounds (GBP) amounts have been converted to USD at a conversation rate of 1.2.
I and my son Alexander have recently increased our holdings in NAO, now standing at 10.8% of the common shares.
Kind regards,
Herbjørn Hansson
Executive Chairman
Nordic American Offshore Ltd.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the PSV market, as a result of changes in the general market conditions of the oil and natural gas industry which influence charter hire rates and vessel values, demand in platform supply vessels, our operating expenses, including bunker prices, dry docking and insurance costs, governmental rules and regulations or actions taken by regulatory authorities as well as potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, the availability of financing and refinancing, vessel breakdowns and instances of off-hire and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.
Contacts:
Herbjørn Hansson, Executive Chairman
Nordic American Offshore Ltd.
Tel: +1 866 805 9504 or +47 90 14 62 91
Turid M. Sørensen, CFO
Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or +47 90 57 29 27
Gary J. Wolfe
Seward & Kissel LLP
New York, USA
Tel: +1 212 574 1223
Web-site: www.nao.bm
