Nordic American Tankers reported substantially stronger second-quarter 2026 results, driven by elevated Suezmax tanker rates that boosted earnings, cash generation, and its quarterly dividend.
Average Time Charter Equivalent revenue reached approximately $63,000 per day per vessel during Q2, compared with $47,600 in the first quarter.
That represents sequential growth of approximately 32%.
The Q2 figure includes loss-of-hire insurance recoveries associated with three vessels that had been unable to transit the Strait of Hormuz.
Net result increased to $68.3 million from $46.3 million in Q1, representing sequential growth of approximately 47.5%.
Adjusted EBITDA reached $67.6 million.
That compares with $54 million in the previous quarter and only $15.8 million in the second quarter of 2025.
The Q2 adjusted EBITDA figure included approximately $14.6 million of loss-of-hire insurance proceeds related to the three vessels affected by Hormuz restrictions.
Market conditions remained favorable moving into the third quarter.
Approximately 75% of NAT’s Q3 fleet days had been booked at roughly $54,000 per day per ship.
The company said current spot-market rates were running in the $60,000 to $90,000-per-day range and occasionally higher.
Those rates are particularly significant relative to the company’s operating-cost base.
NAT said operating costs are below $10,000 per day, creating a wide spread between vessel-level operating costs and current spot-market revenue.
The difference has supported substantial cash accumulation, with cash reaching approximately $175 million.
The company’s balance sheet includes net debt of approximately $215.8 million, equivalent to about $12.7 million per vessel across its 17-vessel fleet.
NAT had $139 million outstanding under its Beal Bank/CLMG senior secured credit agreement and approximately $270.7 million outstanding through its Ocean Yield financing arrangements at quarter-end.
Management emphasized that the company has not used an at-the-market equity offering during 2026.
NAT also increased its quarterly dividend to $0.27 per share from $0.22 in Q1.
The payment represents the company’s 116th consecutive quarterly cash dividend since its public listing in September 1996.
The tanker operator currently has 17 Suezmax vessels and two newbuildings scheduled for delivery in 2028.
During the first quarter, NAT agreed to sell two older ships. One was delivered during Q2, while the second was delivered early in the third quarter after its departure had been delayed because it was trapped inside the Strait of Hormuz.
Geopolitical conditions remain an important driver of both risk and opportunity.
NAT said demand for oil transportation remains strong, particularly from emerging economies, and believes continuing disruptions to global energy flows are creating additional transportation demand.
If the Strait of Hormuz fully reopens, management believes greater oil availability could support restocking of commercial and strategic inventories, potentially generating additional tanker demand.
The financial leverage created by current shipping rates is substantial.
At roughly $63,000 of Q2 TCE against operating costs below $10,000 per day, the company is generating significantly greater vessel-level cash contribution than in more normalized tanker markets.
That helps explain the sequential increase in earnings, rapidly growing cash balance and higher dividend.
Management said 2026 is on track to become NAT’s best year since its stock-market listing in 1995.
KEY QUOTES:
“NAT is in the best market that we have seen for decades.”
“Although we are only halfway through the year, 2026 promises to be the best year for NAT since it was first listed on the stock exchange in 1995.”
Herbjørn Hansson, Founder, Chairman and Chief Executive Officer of Nordic American Tankers
