Nordic American Tanker CEO Says Market Turnaround Will Bring 'Loads of Money'
Nordic American Tanker (NYSE: NAT) CEO Herbjorn Hansson gave an exclusive interview Thursday morning to Benzinga.
Hansson opened the interview by mentioning his upcoming visit with oil giant Exxon Mobil (NYSE: XOM), commenting Nordic American Tanker has “done a lot of business with them”, along with Shell (NYSE: RDS.A) and BP (NYSE: BP).
Shares spiked six percent Wednesday after it was rumored Hansson would be on Jim Cramer's show Mad Money, a rumor that was first confirmed by Benzinga. Cramer went on to comment that Nordic American Tanker is the “best run company in the industry” and that Hansson is “the most disciplined guy in the industry.”
Despite operating in the red, Nordic American Tanker is currently has an impressive 7.18 percent dividend yield. When asked about determining the dividend yield, Hansson responded,“This is a balancing act [we can] use financial resources to buy more ships or pay dividends.” A dividend has been paid for 65 straight quarters, but was recently reduced from $0.30 to $0.16.
Hansson commented on the Q1 earnings released earlier this week that missed the consensus estimates, Hansson said that firm has a “strong balance sheet” because Nordic American Tanker “is very conservative with debt...when the tanker market turns, this company will make loads of money.”
As an executive of various companies for thirty three years, Benzinga asked Hansson about the value of his company, to which he responded, “I do not comment on the stock price as a matter of policy.”
Hansson concluded the interview by noting that for investors interested in energy companies that pay a dividend, “Nordic American Tanker is the choice.” Shares are down almost three percent one hour into the trading day to $8.66.
The interview was broadcast first on the Benzinga Pro real-time audio and news service.
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