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• A pipeline company for the world's oceans.
• A global railroad for crude oil on the seas.

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• Crude Oil Transportation: Providing seaborne transportation services for crude oil globally, primarily utilizing a fleet of Suezmax tankers.

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Nordic American Tankers (NAT) sells primarily to other companies. According to their public filings, no single customer accounts for more than 10% of their consolidated revenues, meaning NAT does not have individually named 'major customers' that require specific disclosure. However, NAT's customer base generally comprises major players within the following categories. The companies listed below are examples of publicly traded companies that operate in the markets NAT serves and represent the types of customers NAT would typically engage with for their crude oil tanker services:

Major Customer Categories and Representative Companies:

• 1. Major International Oil Companies

  These global energy giants often require large-scale transportation of crude oil from production sites to refineries and markets worldwide.

  • ExxonMobil (NYSE: XOM)
  • Chevron (NYSE: CVX)
  • Shell plc (NYSE: SHEL)
  • BP p.l.c. (NYSE: BP)

• 2. State-Owned Oil Companies

  National oil companies control significant oil reserves and production, making them key charterers for crude oil tankers.

  • Petrobras (NYSE: PBR)
  • Equinor ASA (NYSE: EQNR)
  • (Note: Many of the largest state-owned oil companies, such as Saudi Aramco, are not primarily listed on major U.S. exchanges or remain largely private, but are significant players in the market NAT serves.)

• 3. Refiners

  Companies that process crude oil into refined products require its transport to their facilities.

  • Marathon Petroleum Corporation (NYSE: MPC)
  • Valero Energy Corporation (NYSE: VLO)
  • Phillips 66 (NYSE: PSX)

• 4. Oil Traders

  Commodity trading houses buy and sell large volumes of crude oil and often charter tankers for their logistical needs.

  • Glencore plc (LSE: GLEN) - (While primarily listed on the London Stock Exchange, Glencore is a major global commodity trader.)
  • (Note: Many of the largest independent oil trading firms, such as Vitol and Trafigura, are privately held.)

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The public company Nordic American Tankers (NAT) faces several key business risks, primarily stemming from its operational model and financial strategy:

1. High Exposure to Volatile Spot Market: Nordic American Tankers' business model is heavily reliant on chartering its Suezmax vessels in the spot market. This means the company is directly exposed to the significant and often turbulent fluctuations in oil tanker freight rates. The prevalence of spot charters implies that the company bears all the risk and reward of market spot rate changes, which can lead to inherent instability in its financial performance. A dramatic fall in Suezmax rates is identified as a clear and obvious risk.
2. Unsustainable Dividend Payout Ratio: NAT has historically maintained a policy of regular dividend payments, but its dividend payout ratio has been identified as unsustainable by multiple analyses. For instance, the payout ratio has been cited as high as 571.43% and even 2,600.00%, indicating that the company is distributing significantly more in dividends than its net income. This practice could strain the company's cash flow and liquidity, especially if market conditions for tanker rates decline, making the high dividend yield a near-term risk rather than a long-term guarantee.
3. Aging Fleet and Future Capital Expenditure Requirements: The company operates a fleet that includes a notable number of older vessels, with some being over 20 years old. While NAT has engaged in fleet renewal efforts and vessel acquisitions, the need to replace these aging vessels in the near to medium term poses a future capital expenditure requirement. This ongoing need for investment to modernize the fleet could lead to increased debt levels and potentially impact the company's financial health, particularly as older vessels face stricter environmental regulations.

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A clear emerging threat for Nordic American Tankers (NAT) is the global energy transition away from fossil fuels and the accelerating decarbonization mandates within the shipping industry.

This threat manifests in two primary ways:

1. Declining long-term demand for crude oil: As countries commit to reducing carbon emissions, there will be a sustained shift towards renewable energy sources and electric vehicles, potentially leading to a significant decrease in global crude oil consumption over the coming decades. This directly impacts the core business of NAT, which transports crude oil. While the exact timeline is uncertain, the direction is clear, posing a fundamental challenge to the long-term viability of crude oil tanker demand.

2. Increased regulatory pressure and technological disruption in shipping: The International Maritime Organization (IMO) and national bodies are continually tightening environmental regulations on vessel emissions (e.g., EEXI, CII, future greenhouse gas reduction targets). This necessitates significant investment in more fuel-efficient vessels, alternative propulsion systems, or the adoption of new, cleaner fuels (like ammonia, hydrogen, methanol, or LNG). NAT's current fleet primarily consists of conventionally-fueled Suezmax tankers, which may face increasing operational costs, competitive disadvantages, or even obsolescence if they cannot adapt to these rapidly evolving environmental standards and embrace new, costly technologies.

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The addressable market for Nordic American Tankers (NAT) primarily revolves around the global crude oil tanker market, with a specific focus on the Suezmax segment due to their specialized fleet.

The global crude oil tankers market was valued at approximately USD 180 billion in 2023 and is projected to reach around USD 250 billion by 2032, growing at a compound annual growth rate (CAGR) of 3.5% during this period. Another estimate indicates the global crude oil carriers market size was USD 257.37 billion in 2024 and is expected to grow to nearly USD 357.68 billion by 2032, with a CAGR of 4.2% from 2025. In 2025, the global crude oil tanker market size is estimated to be approximately USD 179.86 billion, with a forecast to reach USD 244.71 billion by 2034, expanding at a CAGR of about 3.48% during this period. Another source reported the global crude oil tankers market size was USD 189.6 billion by the end of 2025 and is projected to become USD 254.532 billion by 2033, growing at a CAGR of 3.75% from 2025 to 2033.

Nordic American Tankers specifically operates Suezmax crude oil tankers. The global Suezmax oil tanker market is a significant component of the international energy logistics infrastructure. This market is projected to reach an estimated size of USD 45 billion by 2025, with a CAGR of approximately 6.5% through 2033. Another estimate places the Suezmax oil tanker market size at USD 15 billion in 2025, with a projected CAGR of 5% for the period of 2025-2033. The Suezmax oil tanker market is expected to grow at a CAGR of 2.50% during the forecasted period (2025-2032).

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Nordic American Tankers (NAT) is poised for potential revenue growth over the next two to three years, driven by a combination of strategic fleet expansion, favorable market dynamics in the Suezmax tanker sector, and global energy demand shifts.

1. Fleet Expansion and Modernization: NAT is actively expanding and renewing its fleet of Suezmax tankers. In March and April 2025, the company took delivery of two 2016-built Suezmax tankers, increasing its fleet to 21 vessels. These acquisitions are anticipated to boost the company's earnings and dividend capacity. Furthermore, in November 2025, NAT signed a letter of intent for two additional Suezmax tankers, slated for delivery in the second half of 2028, signaling a continued commitment to fleet growth and modernization. Management has indicated a strategy of acquiring new ships while selectively selling older units to maintain a well-maintained fleet.

2. Strong Suezmax Tanker Market Rates Driven by Tight Supply: The Suezmax tanker market is currently experiencing robust rates, with average daily rates significantly higher in 2025 compared to late 2024. This strength is largely attributable to a tight supply-demand balance. The global order book for new Suezmax tankers is historically low, representing only 17% of the existing conventional fleet, which is below the historical average of 20%. This limited new supply, coupled with shipyards being occupied with building other vessel types like containerships and LNG carriers, is expected to keep tanker rates elevated for the foreseeable future. Additionally, a significant portion of the global Suezmax fleet is aging, with an estimated 27% projected to be over 20 years old by the end of 2027, potentially leading to further supply constraints as older vessels are phased out.

3. Increased Global Oil Demand and Geopolitical Factors: Forecasts indicate a strong demand for oil, especially from emerging economies, which will translate into a greater need for seaborne oil transportation. Geopolitical developments are also playing a crucial role by creating longer shipping routes and increasing overall transportation work for tanker operators. The growth of a "dark fleet" for sanctioned oil and potential future measures against it could redirect legitimate oil trade to reputable operators such as NAT, further boosting demand for their services. NAT explicitly states it does not carry Russian oil and avoids transit through the Suez Canal or trading in the Red Sea.

4. Operational Efficiency and Specialized Fleet: NAT's exclusive focus on Suezmax tankers contributes to operational efficiency by streamlining maintenance and operations. The company maintains a fleet of high-quality, well-maintained vessels, which is critical for securing contracts with major international oil companies that employ approximately 50% of NAT's fleet. With relatively low daily operating costs, estimated at around $9,000 per ship, NAT is positioned to achieve solid margins even with fluctuating charter rates.

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Share Issuance

• Nordic American Tankers (NAT) entered into an "at market issuance sales agreement" in February 2022, allowing it to offer and sell common shares up to an aggregate offering price of $60.0 million.
• Subsequent to September 30, 2021, and through February 11, 2022, NAT issued 1,507,678 common shares for approximately $3.8 million under the 2020 ATM program and 19,987,095 common shares for about $36.7 million under the 2021 ATM program.
• In the first half of 2025, NAT filed a shelf statement indicating potential future offerings to raise capital.

Inbound Investments

• Texas investment firm Dimensional Fund Advisors became the largest institutional investor in Nordic American Tankers in Q4 2024 by opening a significant stake, acquiring shares at $3.67 each.
• In Q3 2025, NAT secured a five-year senior secured credit facility of $150 million with Beal Bank/CLMG, collateralized by seven Suezmax vessels, which also served to refinance existing vessels.

Capital Expenditures

• In November 2025, NAT signed a letter of intent for two Suezmax newbuilds from a South Korean shipyard, each valued at approximately $86 million, with deliveries anticipated in the second half of 2028.
• During the first five months of 2025, NAT acquired two 2016-built Suezmax vessels, Nordic Galaxy and Nordic Moon, for a combined price of $132 million, with 50% lease financing from Ocean Yield. Additionally, NAT acquired two 2018-built vessels from Ocean Yield lease agreements.
• The primary focus of capital expenditures is on fleet renewal and expansion through newbuilds and the acquisition of younger secondhand vessels, while simultaneously divesting older tonnage, such as the sale of two vessels built in 2003 and 2004 for a combined $45 million in the first half of 2025.