Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | NORDIC AMERICAN TANKERS Ltd |
Entity Central Index Key | 0001000177 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 147,230,634 |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Voyage Revenues | $ 317,220 | $ 289,016 | $ 297,141 |
Voyage Expenses | (141,770) | (165,012) | (142,465) |
Vessel Operating Expenses | (66,033) | (80,411) | (87,663) |
Impairment Loss on Vessels | 0 | (2,168) | (110,480) |
Impairment Loss on Goodwill | 0 | 0 | (18,979) |
Loss on Disposal of Vessels | 0 | (6,619) | 0 |
General and Administrative Expenses | (13,481) | (12,727) | (12,575) |
Depreciation Expense | (63,965) | (60,695) | (100,669) |
Net Operating Income (Loss) | 31,971 | (38,616) | (175,690) |
Interest Income | 298 | 334 | 347 |
Interest Expense | (38,390) | (34,549) | (20,464) |
Other Financial Expense | (4,160) | (14,729) | (644) |
Total Other Expenses | (42,252) | (48,944) | (20,761) |
Net Loss Before Income Taxes and Equity Loss | (10,281) | (87,560) | (196,451) |
Income Tax Expense | (71) | (79) | (83) |
Equity Loss from Associate | 0 | (7,667) | (8,435) |
Net Loss | $ (10,352) | $ (95,306) | $ (204,969) |
Basic and Diluted Loss per Share (in dollars per share) | $ (0.07) | $ (0.67) | $ (1.97) |
Basic and Diluted Average Number of Common Shares Outstanding (in shares) | 142,571,361 | 141,969,666 | 103,832,680 |
Cash Dividends per Share (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.53 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net Loss | $ (10,352) | $ (95,306) | $ (204,969) |
Other Comprehensive Loss | |||
Translation Differences | (498) | (172) | 110 |
Unrealized (Loss) Gain on Defined Benefit plan | 420 | 40 | (260) |
Other Comprehensive Loss | (78) | (132) | (150) |
Total Comprehensive (Loss)/Income | $ (10,430) | $ (95,438) | $ (205,119) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and Cash Equivalents | $ 48,847 | $ 49,327 |
Restricted Cash | 12,791 | 0 |
Accounts Receivable, Net | 24,583 | 22,102 |
Accounts Receivable, Related Party | 0 | 492 |
Prepaid Expenses | 3,383 | 3,830 |
Inventory | 22,475 | 20,291 |
Voyages in Progress | 13,124 | 15,075 |
Investment Securities | 825 | 0 |
Other Current Assets | 3,344 | 1,828 |
Total Current Assets | 129,372 | 112,945 |
Non-Current Assets | ||
Vessels | 899,997 | 953,758 |
Investment Securities | 0 | 4,197 |
Other Non-Current Assets | 1,534 | 211 |
Total Non-Current Assets | 901,531 | 958,166 |
Total Assets | 1,030,903 | 1,071,111 |
Current Liabilities | ||
Accounts Payable | 8,405 | 3,575 |
Accrued Voyage Expenses | 11,524 | 5,063 |
Other Current Liabilities | 15,562 | 8,960 |
Current Portion of Long Term Debt | 23,537 | 18,692 |
Total Current Liabilities | 59,028 | 36,290 |
Non - Current Liabilities | ||
Long-Term Debt | 375,364 | 417,836 |
Operating Lease Liabilities | 934 | 0 |
Deferred Compensation Liability | 153 | 14,954 |
Total Non-Current Liabilities | 376,451 | 432,790 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Common Stock, par value $0.01 per share 360,000,000 authorized, 147,230,634 and 141,969,666 issued and outstanding at December 31, 2019 and December 31, 2018, respectively. | 1,472 | 1,420 |
Additional Paid-in Capital | 38,499 | 123,852 |
Contributed Surplus | 567,202 | 786,881 |
Accumulated Other Comprehensive Loss | (1,397) | (1,319) |
Accumulated Deficit | (10,352) | (308,803) |
Total Shareholders' Equity | 595,424 | 602,031 |
Total Liabilities and Shareholders' Equity | $ 1,030,903 | $ 1,071,111 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Shareholders' Equity | ||
Common Share, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 360,000,000 | 360,000,000 |
Common Stock, shares issued (in shares) | 147,230,634 | 141,969,666 |
Common Stock, shares outstanding (in shares) | 147,230,634 | 141,969,666 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Treasury Shares [Member] | Additional Paid-in Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 101,969,666 | 13,500 | |||||
Balance at Dec. 31, 2016 | $ 1,020 | $ 235,050 | $ 640,472 | $ (1,037) | $ (4,456) | $ 871,049 | |
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net Loss | 0 | 0 | 0 | 0 | (204,969) | (204,969) | |
Reduction of share premium | $ 0 | (215,481) | 215,481 | 0 | 0 | 0 | |
Common Shares Issued, net of issuance cost (in shares) | 40,000,000 | 0 | |||||
Common Shares Issued, net of issuance cost | $ 400 | 103,348 | 0 | 0 | 0 | 103,748 | |
Other Comprehensive Loss | $ 0 | 0 | 0 | (150) | 0 | (150) | |
Share based compensation (in shares) | 0 | (4,500) | |||||
Share based compensation | $ 0 | 522 | 0 | 0 | 0 | 522 | |
Forfeited shares - 2011 Equity Incentive Plan (in shares) | 13,000 | ||||||
Dividends Distributed | $ 0 | 0 | (59,136) | 0 | 0 | (59,136) | |
Balance (in shares) at Dec. 31, 2017 | 141,969,666 | 22,000 | |||||
Balance (in shares) (ASC 606 [Member]) at Dec. 31, 2017 | 141,969,666 | 22,000 | |||||
Balance at Dec. 31, 2017 | $ 1,420 | 123,439 | 796,817 | (1,187) | (209,425) | 711,064 | |
Balance (ASC 606 [Member]) at Dec. 31, 2017 | 1,420 | 123,439 | 796,817 | (1,187) | (213,497) | 706,992 | |
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Effect of change in accounting policy | ASC 606 [Member] | 0 | 0 | 0 | (4,072) | (4,072) | ||
Net Loss | 0 | 0 | 0 | 0 | (95,306) | (95,306) | |
Other Comprehensive Loss | $ 0 | 0 | 0 | (132) | 0 | (132) | |
Share based compensation (in shares) | 0 | 0 | |||||
Share based compensation | $ 0 | 413 | 0 | 0 | 0 | 413 | |
Dividends Distributed | $ 0 | 0 | (9,936) | 0 | 0 | (9,936) | |
Balance (in shares) at Dec. 31, 2018 | 141,969,666 | 22,000 | |||||
Balance at Dec. 31, 2018 | $ 1,420 | 123,852 | 786,881 | (1,319) | (308,803) | 602,031 | |
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net Loss | 0 | 0 | 0 | 0 | (10,352) | (10,352) | |
Coverage of Accumulated Deficit | 0 | 0 | (308,803) | 0 | 308,803 | 0 | |
Reduction of share premium | $ 0 | (103,379) | 103,379 | 0 | 0 | 0 | |
Common Shares Issued, net of issuance cost (in shares) | 5,260,968 | 0 | |||||
Common Shares Issued, net of issuance cost | $ 52 | 17,870 | 0 | 0 | 0 | 17,922 | |
Other Comprehensive Loss | $ 0 | 0 | 0 | (78) | 0 | (78) | |
Share based compensation (in shares) | 0 | 0 | |||||
Share based compensation | $ 0 | 156 | 0 | 0 | 0 | (156) | |
Forfeited shares - 2011 Equity Incentive Plan (in shares) | 20,000 | ||||||
Dividends Distributed | $ 0 | 0 | (14,255) | 0 | 0 | (14,255) | |
Balance (in shares) at Dec. 31, 2019 | 147,230,634 | 42,000 | |||||
Balance at Dec. 31, 2019 | $ 1,472 | $ 38,499 | $ 567,202 | $ (1,396) | $ (10,352) | $ 595,424 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | ||
Common Shares Issued, issuance costs | $ 0.5 | $ 0.8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net Loss | $ (10,352) | $ (95,306) | $ (204,969) |
Reconciliation of Net Loss to Net Cash Provided by Operating Activities | |||
Depreciation Expense | 63,965 | 60,695 | 100,669 |
Impairment Loss on Vessels | 0 | 2,168 | 110,480 |
Impairment Loss on Goodwill | 0 | 0 | 18,979 |
Loss on Disposal of Vessels | 0 | 6,619 | 0 |
Equity Loss from Associate | 0 | 7,667 | 8,435 |
Change in Fair Value of Investment Securities | 3,160 | ||
Drydock Expenditure | (4,158) | (5,210) | (18,776) |
Amortization of Deferred Finance Costs | 4,291 | 15,350 | 1,393 |
Deferred Compensation Liabilities | (10,970) | (860) | 1,303 |
Share-based Compensation | 156 | 413 | 522 |
Other, net | (66) | 21 | (163) |
Changes in Operating Assets and Liabilities | |||
Accounts Receivables | (1,989) | (357) | (4,258) |
Accounts Receivables, Related Party | 0 | 237 | (145) |
Inventory | (2,184) | 2,794 | (2,200) |
Prepaid Expenses and Other Current Assets | (1,068) | 1,837 | (904) |
Accounts Payable and Accrued Liabilities | 10,122 | (7,112) | 1,072 |
Voyages in Progress | 1,951 | (5,059) | 20,303 |
Net Cash Provided by / (Used In) Operating Activities | 52,858 | (16,103) | 31,741 |
Cash Flows from Investing Activities | |||
Investment in Vessels | (2,531) | (4,810) | (37,567) |
Investment in Other Fixed Assets | 0 | (60) | 0 |
Sale of Vessels | 0 | 89,624 | 0 |
Proceeds from Sale of Investment Securities | 212 | 0 | 0 |
Investments in Associate | 0 | 0 | (10,000) |
Dividends received from Associate | 0 | 300 | 1,041 |
Net Cash (Used In) / Provided by Investing Activities | (2,319) | 85,054 | (46,526) |
Cash Flows from Financing Activities | |||
Proceeds from Issuance of Common Stock | 17,922 | 0 | 103,748 |
Proceeds from Vessel Financing Newbuildings | 0 | 12,505 | 0 |
Proceeds from Borrowing Activities | 300,000 | 0 | 0 |
Repayments on Credit Facility | (313,400) | (78,242) | (55,359) |
Repayment of Vessel financing 2018 Newbuildings | (7,273) | (2,361) | 0 |
Repayments of Borrowing Facility | (14,324) | 0 | 0 |
Transaction Costs Borrowing Facilities | (6,921) | 0 | (13,125) |
Dividends Distributed | (14,255) | (9,936) | (54,226) |
Net Cash (Used In) / Provided by Financing Activities | (38,251) | (78,034) | (18,962) |
Net Increase / (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 12,288 | (9,083) | (33,747) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 49,327 | 58,359 | 92,170 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 23 | 51 | (64) |
Cash, Cash Equivalents, and Restricted Cash at End of Year | 61,638 | 49,327 | 58,359 |
Supplemental Disclosure of Cash Flow information | |||
Cash and Cash Equivalents | 48,847 | 49,327 | 58,359 |
Restricted cash | 12,791 | 0 | 0 |
Cash Paid for Taxes | 79 | 83 | 102 |
Fair Value of Shares Distributed as Dividend in Kind | 0 | 0 | 4,910 |
Cash Paid for Interest, Net of Amounts Capitalized | $ 35,616 | $ 32,300 | $ 19,476 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
NATURE OF BUSINESS [Abstract] | |
NATURE OF BUSINESS | 1. NATURE OF BUSINESS Nordic American Tankers Limited (“NAT”) was formed on June 12, 1995 under the laws of the Islands of Bermuda. The Company’s shares trade under the symbol “NAT” on the New York Stock Exchange. The Company was formed for the purpose of acquiring and chartering out double-hull tankers. The Company is an international tanker company that currently has a fleet of 23 Suezmax tankers. The Company has not disposed of or acquired new vessels in 2019. The 23 vessels the Company operated per December 31, 2019, average approximately 156,000 dwt each. In 2019, 2018 and 2017, the Company chartered out its operating vessels primarily in the spot market. The Company’s Fleet The Company’s current fleet consists of 23 Suezmax crude oil tankers of which the vast majority have been built in Korea. Vessel Built in Deadweight Tons Delivered to NAT in Nordic Freedom 2005 159,331 2005 Nordic Moon 2002 160,305 2006 Nordic Apollo 2003 159,998 2006 Nordic Cosmos 2003 159,999 2006 Nordic Grace 2002 149,921 2009 Nordic Mistral 2002 164,236 2009 Nordic Passat 2002 164,274 2010 Nordic Vega 2010 163,940 2010 Nordic Breeze 2011 158,597 2011 Nordic Zenith 2011 158,645 2011 Nordic Sprinter 2005 159,089 2014 Nordic Skier 2005 159,089 2014 Nordic Light 2010 158,475 2015 Nordic Cross 2010 158,475 2015 Nordic Luna 2004 150,037 2016 Nordic Castor 2004 150,249 2016 Nordic Sirius 2000 150,183 2016 Nordic Pollux 2003 150,103 2016 Nordic Star 2016 159,000 2016 Nordic Space 2017 159,000 2017 Nordic Tellus 2018 157,000 2018 Nordic Aquarius 2018 157,000 2018 Nordic Cygnus 2018 157,000 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting: Reclassifications: Principles of Consolidation: Use of Estimates: Foreign Currency Translation: . Revenue and Expense Recognition: Spot Charters: As the Company’s performance obligations are services which are received and consumed by our customers as we perform such services, revenues are recognized over time proportionate to the days elapsed since the service commencement compared to the total days anticipated to complete the service. Freight is generally billed to the customers after the cargo has been discharged and the performance obligation fulfilled by the Company. The Company is responsible for paying voyage expenses and the charterer is responsible for any delay at the load and discharge ports. Demurrage earned during a spot charter represents a variable consideration. The Company recognizes such revenues in the voyage estimates only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Voyage estimates are reviewed and updated over the duration of the spot charter contract. When the Company’s tankers are operating on spot charters the vessels are traded fully at the risk and reward of the Company. The Company considers it appropriate to present the gross amount of earned revenue from the spot charter, showing voyage expenses related to the voyage separately in the Statements of Operations. In 2017, before the adoption of Topic 606 on January 1, 2018, the Company recognized voyage revenues ratably over the estimated length of each voyage, on a discharge-to-discharge basis. Time Charters: The Company has applied the practical expedient to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease component otherwise would be accounted for under the new revenue guidance (ASC 606); and both of the following are met: (1) the timing and patterns of transfer of the nonlease component and associated lease are the same; and (2) the lease component, if accounted for separately, would be classified as an operating lease. The pattern of revenue recognition has not changed as a result of implementation of ASC 842 Leases. Vessel Operating Expenses : Cash, Cash Equivalents and Restricted Cash: Accounts Receivable, Net: Inventories: Vessels: Impairment of Vessels: Drydocking: Leases: Investments in Equity Method Investees: Investment Securities: Goodwill: Deferred Compensation Liability: Segment Information: Fair Value of Financial Instruments: Deferred Financing Costs: Share Based Compensation: Restricted shares The fair value of restricted shares to employees is estimated based on the market price of the Company’s shares. The fair value of restricted shares granted to employees is measured at grant date and the Company records the compensation expense for such awards over the requisite service period. Stock options The Company grants stock options as incentive-based compensation to certain employees. The Company measures the cost of such awards using the grant date fair value of the award and recognizes that cost over the requisite service period. Income Taxes: Two of the Company’s wholly-owned subsidiaries are located in Norway and are subject to income tax in that jurisdiction at 22%, 23%, and 24% for the years ended December 31, 2019, 2018 and 2017, respectively, of their taxable profit. The income tax expensed for year ended December 31, 2019, 2018 and 2017 was $71,000, $79,000, and $83,000, respectively. Deferred tax assets related to these entities are inconsequential. The Company does not have any unrecognized tax benefits, material accrued interests or penalties related to income taxes. Concentration of Credit Risk: For the year ended December 31, 2019, one customer accounted for 13.5% of the spot charter revenues. For the year ended December 31, 2018, one customer accounted for 10.5% of the spot charter revenues. For the year ended December 31, 2017, one customer accounted for 12% of the spot charter revenues. Accounts receivable, Net, as of December 31, 2019, and 2018 were $24.6 and $22.1 million, respectively. As of December 31, 2019, three charterers accounted for 48% of the outstanding accounts receivable, with 19%, 15% and 14%. As of December 31, 2018, three charterers accounted for 49% of the outstanding accounts receivable, with 24%, 13%, and 12%. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit losses (ASC 326), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model known as the current expected credit loss ("CECL") model that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to recognize as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. Unlike the incurred loss models under existing standards, the CECL model does not specify a threshold for the recognition of an impairment allowance. Rather, an entity will recognize its estimate of expected credit losses for financial assets as of the end of the reporting period. Credit impairment will be recognized as an allowance or contra-asset rather than as a direct write-down of the amortized cost basis of a financial asset. However, the carrying amount of a financial asset that is deemed uncollectible will be written off in a manner consistent with existing standards. The standard will be effective for the first reporting period within annual periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect any material impact on our financial assets from implementation of this new guidance. Recently Adopted Accounting Standards Effective January 1, 2019, the Company adopted ASC 842 Leases applying the modified retrospective method. We recognized an initial $1.9 million lease liability and a corresponding right-of-use lease asset to comply with the new lease standard. No cumulative effects have been recorded to the Company’s accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those prior periods (effective date method). The Company has applied the practical expedient for time-charter out contracts that include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer, to not separate non-lease components, or service element, from the associated lease component and instead to account for those components as a single component if the non-lease component otherwise would be accounted for under the new revenue guidance (ASC 606); and both of the following are met: (1) the timing and patterns of transfer of the non-lease component and associated lease are the same; and (2) the lease component, if accounted for separately, would be classified as an operating lease. The right-of-use asset, presented in Other-Non Current Assets, and lease liability is related to leased office space and the reduction in the carrying amount of the right-of-use asset during the twelve months ended December 31, 2019 has been $0.5 million. Certain of the Company’s lease contracts for office space include optional periods that are not included in the right-of-use asset and lease liability. The discount rate applied to the calculations is an incremental borrowing rate. The lease liability is presented in Other Current Liabilities and Operating Lease Liabilities and the lease cost is recognized in General and Administrative Expenses. ASC 842 allows lessees to elect as an accounting policy not to apply the provisions of ASC 842 to short term leases (i.e., leases with an original term of 12-months or less), which the Company has applied. Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Effective January 1, 2018, the Company adopted Revenue from Contracts with Customers (ASC 606). Effect on the Consolidated Balance sheets as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption ASSETS Total Current Assets 112,945 6,991 119,936 Voyages in Progress 15,075 8,111 23,186 Prepaid Expenses 3,830 (1,120 ) 2,710 Total Non-Current Assets 958,166 0 958,166 TOTAL ASSETS 1,071,111 6,991 1,078,102 EQUITY AND LIABILITIES Total Shareholders’ Equity 602,031 6,265 608,296 Total Current Liabilities 36,290 726 37,016 Accrued Voyage Expenses 5,063 726 5,789 Total Non-Current Liabilities 432,790 0 432,790 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,071,111 6,991 1,078,102 Effect on the Consolidated Statements of Operations as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption Voyage Revenues 289,016 2,819 291,835 Voyage Expenses (165,012 ) (627 ) (165,639 ) Net Operating Loss (38,616 ) 2,193 (36,423 ) Net Loss * (95,306 ) 2,193 (93,113 ) Total Comprehensive Loss (95,438 ) 2,193 (93,245 ) Effect on the Consolidated Statement of Cash Flows as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption Net Loss (95,306 ) 2,193 (93,113 ) Voyages in Progress (5,059 ) (2,819 ) (7,879 ) Prepaid Expenses and Other Current Assets 1,837 503 2,340 Accounts Payable and Accrued Liabilities (7,112 ) 124 (6,988 ) Net Cash (Used In)/Provided by Operating Activities (16,103 ) - (16,103 ) No other new accounting policies have been adopted since December 31, 2018. |
VOYAGE REVENUES
VOYAGE REVENUES | 12 Months Ended |
Dec. 31, 2019 | |
VOYAGE REVENUES [Abstract] | |
VOYAGE REVENUES | 3. VOYAGE REVENUES Our voyage revenues consist of time charter revenues and spot charter revenues with the following split: All amounts in USD ‘000 2019 2018 2017 Spot charter revenues 283,007 259,978 257,495 Time charter revenues 34,213 29,038 39,646 Total Voyage Revenues 317,220 289,016 297,141 *Spot charter revenues for 2019 and 2018 are presented in accordance we ASC 606 Revenue from Contracts with Customers. The comparative information for 2017 has not been restated. The future minimum revenues as at December 31, 2019 related to time charter revenues are as follows: All amounts in USD ‘000 Amount 2020 27,932 2021 7,317 2022 - Future minimum revenues 35,249 Our voyage contracts have a duration of one year or less and we applied the exemption related to excluding the disclosure of remaining performance obligations. As of December 31, 2019 and December 31, 2018, the Company has capitalized fulfilment cost of $1.0 million and $1.1 million, respectively. |
VESSELS
VESSELS | 12 Months Ended |
Dec. 31, 2019 | |
VESSELS [Abstract] | |
VESSELS | 4. VESSELS Vessels consists of the carrying value of 23 vessels for the year ended December 31, 2019 and December 31, 2018, respectively. Vessels includes capitalized drydocking costs. Depreciation is calculated based on cost less estimated residual value of $8.0 million per vessel over the estimated useful life of the vessel using the straight-line method. The estimated useful life of a vessel is 25 years from the date the vessel is delivered from the shipyard. All figures in USD ‘000 2019 2018 Vessels as of January 1 1,307,087 1,769,967 Additions Vessels 2,531 169,446 Disposals Vessels - (632,326 ) Drydocking as of January 1 52,331 119,303 Additions Drydocking 7,618 8,210 Disposals Drydocking - (75,182 ) Total Vessels and Drydocking 1,369,567 1,359,418 Less Accumulated Depreciation (469,570 ) (405,660 ) * Less Accumulated Impairment Loss on Vessels - - ** Vessels 899,997 953,758 *Depreciation charges of $497.0 million related to vessels disposed of in 2018 is excluded ** Impairment charges of $2.2 million and $110.5 million related to vessels disposed of in 2018 is excluded The Company has taken three vessels through periodical maintenance surveys in 2019 and further two vessels were in drydock for periodical maintenance as at December 31, 2019. Impairment Loss on Vessels The Company has not recorded any impairment loss on vessels for the year ended December 31, 2019. The Company recorded an impairment loss of $2.2 million and $110.5 million for the years ended December 31, 2018 and December 31, 2017, respectively. The Company reviewed its assets for impairment on an asset by asset basis. In determining whether the assets are recoverable, the Company compared the estimate of the undiscounted cash flows expected to be generated by the assets to its carrying value. As of December 31, 2019, it was determined that the sum of the undiscounted cash flows for each vessel exceeded its carrying value and no impairment was recorded. In developing estimates of future undiscounted cash flows, we made assumptions and estimates based on historical trends as well as future expectations. The most important assumption in determining undiscounted cash flows are the estimated freight rates. Freight rates are volatile and the analysis is based on market rates obtained from third parties, in combination with historical achieved rates by the Company. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES Hermitage Offshore Services Ltd. (“HOS”) (formerly known as Nordic American Offshore Ltd) was incorporated in 2013, and operates ten platform supply vessels, eleven crew boats and two anchor handling vessels. HOS is listed on the New York Stock Exchange under the ticker “PSV”. NAT has sold 187,815 shares in HOS during the year and is holding 811,538 shares as of December 31, 2019 that is equaling about 3.16% of the common shares outstanding in HOS as of December 31, 2019. The reduction in ownership is a result of non-participation in several equity offerings in HOS during 2019 together with the abovementioned sale of shares. The carrying value of the investment per December 31, 2019 and 2018 is $0.8 million and $4.2 million, respectively, based on the share price. The Company has disposed of shares for a consideration of $0.2 million in 2019 and recognized a loss of $3.2 million and zero in earnings from changes in fair market value for the periods ending December 31, 2019 and 2018, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 6. RELATED PARTY TRANSACTIONS Hermitage Offshore Services Ltd (formerly Nordic American Offshore Ltd) (“HOS”): In December 2013, the Company entered into a management agreement with HOS for the provision of administrative services. For services under the management agreement, NAT received a management fee of $83,000, $100,000, $100,000 for 2019, 2018 and 2017, respectively, and is reimbursed for cost incurred in connection with its services. NAT also receives reimbursement for a portion of the operational costs such as salary and office rent, among others, incurred by NAT, which is attributable to HOS. For the year ended December 31, 2019, 2018 and 2017, the Company recognized an aggregate of $0.9 million, $2.3 million and $2.3 million, respectively, for such costs incurred which was included in General and Administrative Expenses. The management agreement was terminated as of June 30, 2019 and ended on October 31, 2019. NAT holds less than 5% of the shares in Hermitage Offshore Services Ltd as of December 31, 2019, as a result of being diluted through equity offerings in late 2018 and throughout 2019, and HOS is no longer considered to be a related party of NAT. Board Members and Employees: In 2014, the Company entered into an agreement with a company owned by a Board member for the use of an asset for corporate and marketing activities. The Company paid a fixed annual fee and fees associated with actual use. This agreement was terminated in 2017. In 2019, 2018 and 2017, use of the asset was paid for upon utilization and the Company recognized an expense $0.3 million, $0.4 million and $0.2 million, respectively. No amounts were due to the related party as of December 31, 2019, 2018 or 2017 related to use of the asset. As of December 31, 2019 and December 31, 2018, the Company has a receivable of $0.3 million and $0.2 million, respectively, related to prepayments to our Chairman. |
DEFERRED COMPENSATION LIABILITY
DEFERRED COMPENSATION LIABILITY | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED COMPENSATION LIABILITY [Abstract] | |
DEFERRED COMPENSATION LIABILITY | 7. DEFERRED COMPENSATION LIABILITY In 2007 and 2010, the Board of Directors approved an unfunded deferred compensation agreement for the Chairman, President and CEO and the Company’s former Chief Financial Officer and Executive Vice President. The agreements provided for unfunded deferred compensation computed as a percentage of salary, and certain benefits for dependents. The Company has entered into a final settlement agreement with the former CFO to terminate the compensation agreement with a corresponding payment made by March 31, 2020. We refer to note 11 for further information. The agreement for the Chairman, President and CEO was amended in 2017 for the benefits to vest over a period of employment of 15 years up to a maximum of 66% of the salary level at the time of retirement, age of 72. The Company had a restricted deposit account of $10.0 million for securing the financing of this deferred compensation liability as at December 31, 2016, but the restriction was lifted in 2017, 2018 and 2019. The Company has entered into a final settlement agreement to terminate the compensation agreement with a corresponding payment made of $11.0 million. The total expense (gain) related to the deferred compensation agreements for the Chairman, President and CEO and the Company’s former Chief Financial Officer and Executive Vice President, recognized in 2019, 2018 and 2017 were $(0.2) million, $(0.7) million and $1.0 million, respectively. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
OTHER NON-CURRENT ASSETS | 8. OTHER NON-CURRENT ASSETS All figures in USD ‘000 2019 2018 Fixture, Furniture and Equipment 65 128 Right of Use Asset* 1,412 - Other 57 83 Total as of December 31, 1,534 211 * relates to certain office lease contracts. Optional periods are not included in the calculation. |
SHARE-BASED COMPENSATION PLAN
SHARE-BASED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLAN [Abstract] | |
SHARE-BASED COMPENSATION PLAN | 9. SHARE-BASED COMPENSATION PLAN Equity Incentive Plan In 2011, the Board of Directors decided to establish an incentive plan involving a maximum of 400,000 shares pursuant to a vesting schedule of which all shares were allocated among the management of the Company and the members of the Board of Directors. The shares are forfeited if the grantee leaves the Company before the shares are vested. The holders of the shares are entitled to voting rights as well as to receive dividends paid during the trade restriction period. In December 2015, the Board of Directors amended and restated the 2011 Equity Incentive Plan to reserve an additional 137,665 shares for issuance to persons employed in the management of the Company and members of the Board of Directors under the same terms as the original plan. As of December 31, 2019, a total of 92,165 common shares with a weighted average grant date fair value of $14.38 have been allocated with a remaining unrecognized cost related to unvested shares of nil. A total of 87,665 common shares vested on January 8, 2020. The Company held 22,000 treasury shares as of December 31, 2018 from forfeitures and further 20,000 common shares have forfeited from employees in 2019. The Company held 42,000 common shares as treasury shares as of December 31, 2019. The compensation expense is recognized on a straight-line basis over the vesting period and is recorded as part of General and Administrative expenses. The total compensation expense related to common shares under the plan was $0.1 million, $0.4 million, and $0.5 million for the years ended December 31, 2019, December 31, 2018 and December 31, 2017, respectively. Stock Option Award Amendment The Board of Directors has in 2019 amended and restated the 2011 Equity Incentive Plan to reserve an additional 1,000,000 stock options for issuance. The stock options have been allocated amongst management and employees of the Company. As of December 31, 2019, the Company has granted 755,000 and 234,000 options with vesting over a period of two and three years, respectively, and an exercise price of $4.70 per share. The Company has used the Black-Scholes option pricing model to measure the grant date fair value of the options with the following assumptions applied to the model; Options with two year vesting Options with three year vesting Volatility 57.5 % 52.5 % Dividend yield 10.0 % 10.0 % Risk-free interest rate 1.64 % 1.65 % Weighted-average grant date fair value $ 0.59 $ 0.58 The expected volatility was based on historical volatility observed from historical company-specific data during the two years prior to the grant date. The compensation expense related to the stock option awards was $0.1 million for the year ended December 31, 2019 and the remaining unrecognized cost related to non-vested stock options was $0.5 million with a remaining average remaining vesting period of 2.1 years. |
LONG-TERM DEBT AND CURRENT PORT
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT [Abstract] | |
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT | 10. LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT Credit Facility and 2019 Senior Secured Credit Facility: In 2012, the Company entered into a $430 million revolving credit facility, which in 2015 was increased to $500 million, with a syndicate of lenders in order to refinance its existing credit facility, fund future vessel acquisitions and for general corporate purposes (the "Credit Facility"). The Company had $313.4 million borrowed as of December 31, 2018 under this credit facility. In connection with the expansion of the Credit Facility in 2015, the Company incurred $4.6 million in deferred financing costs, which was amortized over the term of the loan and presented net of the outstanding loan balance. The remaining balance as of December 31, 2018 was $1.7 million, which has been expensed as Interest Expenses in 2019, upon the repayment on February 12, 2019, of the then remaining balance of $313.4 million of the Credit Facility. On February 12, 2019 the Company entered into a new five-year senior secured credit facility for $306.1 million (the “2019 Senior Secured Credit Facility”) that refinanced the outstanding balance on the Credit Facility as of that date. Borrowings under the 2019 Senior Secured Credit Facility are secured by first priority mortgages over the vessels (excluding the three vessels delivered in 2018, see description below) and assignments of earnings and insurance. The loan is amortizing with a twenty-year maturity profile, carries a floating LIBOR interest rate plus a margin and matures in February 2024. Further, the agreement contains a discretionary excess cash mechanism for the lender that equals 50% of the net earnings from the collateral vessels, less capex provision and fixed loan amortization. The Company has incurred $13.0 million (including a non-cash portion of $6.1 million) in financing costs, which is amortized over the term of the loan and the outstanding loan balance was presented net of the costs. The agreement contains covenants that require a minimum liquidity of $30.0 million and a loan-to-vessel value ratio of maximum 70%. We are free to distribute dividends as long as we comply with the described covenants. As of December 31, 2019, the Company had $291.8 million drawn under its 2019 Senior Secured Credit Facility, where $18.7 million has been presented as Current Portion of Long-Term Debt. This includes $3.4 million related to the excess cash flow mechanism payment related to earnings generated in the fourth quarter of 2019 and payable in the first quarter of 2020. The Company has incurred $13.0 million in financing cost, which is amortized over the term of the loan and presented net of the outstanding loan balance. The estimated fair value for the long-term debt is considered to be approximately equal to the carrying value since it carries a variable interest rate. As of December 31, 2019 and as of the date of the issuance of this report, the Company is in compliance with the terms of the 2019 Senior Secured Credit Facility. The 2019 Senior Secured Credit Facility is amortizing with a twenty-year maturity profile and the Company has repaid $14.3 million of the facility in the twelve months ended December 31, 2019. Subsequent to December 31, 2019, a further repayment of $7.3 million has been done and the outstanding balance as of the date of this report is $284.5 million. Financing of 2018 Newbuildings The three 2018 Newbuildings were delivered in July, August and October 2018, respectively. Under the terms of the financing agreement, the lender has provided financing of 77.5% of the purchase price for each of the three 2018 Newbuildings and paid the remaining payment obligations to Samsung shipyard that were due upon delivery of the vessels. Net proceeds of $12.5 million received from Ocean Yield ASA were used to pay down the drawn amount on the Credit Facility. Upon delivery of each of the vessels, the Company entered into ten-year bareboat charter agreements. The Company has obligations to purchase each vessel for $13.6 million upon the completion of the ten-year bareboat charter agreements, and also has the option to purchase the vessels after sixty and eighty-four months. The financing agreements for the three vessels have a total effective interest rate ranging from 6.50% to 6.72% including a floating LIBOR element that is subject to annual adjustment. The financing agreement contains certain financial covenants requiring us to on a consolidated basis to maintain a minimum value adjusted equity of $175.0 million and ratio of 25%, minimum liquidity of $20.0 million; and a minimum vessel value to outstanding lease clause. The outstanding amount under this financing arrangement was $119.9 million and $127.1 million as of December 31, 2019 and 2018, respectively, where $7.6 and $7.3 million has been presented as Current Portion of Long-Term Debt, respectively. The Company has incurred $2.3 million in financing cost, which is amortized over the term of the financing arrangement and presented net of the outstanding loan balance. As of December 31, 2019 the aggregate annual principal payments required to be made under the Company’s debt facilities are as follows: Debt payments in $'000s Total 2020 2021 2022 2023 2024 More than 5 Senior Secured Credit Facility (1) 291,798 18,749 15,305 15,305 15,305 227,134 - Financing of 2018 Newbuildings (2) 119,867 7,630 7,960 8,327 8,711 9,138 78,101 Total 411,665 26,379 23,265 23,632 24,016 236,272 78,101 (1) Refers to obligation to repay indebtness outstanding as of December 31, 2019 under the 2019 Senior Secured Credit Facility (2) Refers to obligation to repay indebtness outstanding as of December 31, 2019 for financing of the 2018 Newbuildings Liquidity Outlook The Company performs on a regular basis cash flow projections to evaluate whether it will be in a position to cover the liquidity needs for the next 12-month period and the compliance with financial and security ratios under the existing and future financing agreements. In developing estimates of future cash flows, the Company makes assumptions about the vessels’ future performance, market rates, operating expenses, capital expenditure, fleet utilization, general and administrative expenses, loan repayments and interest charges. The assumptions applied are based on historical experience and future expectations. On March 29, 2019, the Company entered into an equity distribution agreement with B. Riley FBR, Inc., acting as a sales agent, under which we may, from time to time, offer and sell shares of our common stock through an At-the-Market Offering (“ATM”) program having an aggregate offering price of up to $40,000,000. As of December 31, 2019, the Company has raised gross and net proceeds (after deducting sales commissions and other fees and expenses) under the ATM of $18.6 million and $17.9 million, respectively, by issuing and selling 5,260,968 common shares. As of the date of this annual report, no further sales have been completed under the ATM program. The Company believes that the current cash and cash equivalents and cash expected to be generated from operations, together with the measures described above, are sufficient to meet the working capital needs and other liquidity requirements for the next 12 months from the date of this report. |
INTEREST EXPENSES
INTEREST EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
INTEREST EXPENSES [Abstract] | |
INTEREST EXPENSES | 11. INTEREST EXPENSES Interest expenses consist of interest expense on the long-term debt, the commitment fee and amortization of deferred financing costs related to the Credit Facility described in Note 9. All amounts in USD ‘000 2019 2018 2017 Interest Expenses, net of capitalized interest 34,018 29,753 18,286 Commitment Fee - 3,325 760 Amortization of Deferred Financing Costs 4,372 1,470 1,393 Other financial costs - 1 25 Total Interest Expenses 38,390 34,549 20,464 For the years ended December 31, 2019, 2018 and 2017, $0.0 million, $2.6 million and $2.5 million of interest expenses were capitalized, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | 12. ACCRUED LIABILITIES All figures in USD ‘000 2019 2018 Accrued Interest 163 1,598 Accrued Expenses 11,569 7,362 Settlement Deferred Compensation Liabilities 3,830 - Total as of December 31, 15,562 8,960 The settlement of the deferred compensation liabilities includes the settlement with our former CFO and Executive Vice President that is payable within March 31, 2020 and payroll taxes related to this settlement and the settlement of the Executive Pension Plan with our Chairman, President & CEO. We refer to note 7 for further information. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS (LOSS) PER SHARE [Abstract] | |
EARNINGS (LOSS) PER SHARE | 13. EARNINGS (LOSS) PER SHARE Basic earnings per share (“EPS”) are computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. All figures in USD except number of shares and earnings (loss) per common share 2019 2018 2017 Numerator Net Loss (10,352 ) (95,306 ) (204,969 ) Denominator: Basic - Weighted Average Common Shares Outstanding 142,571,361 141,969,666 103,832,680 Dilutive – Weighted Average Common Shares Outstanding 142,571,361 141,969,666 103,832,680 Loss per Common Share: Basic (0.07 ) (0.67 ) (1.97 ) Diluted (0.07 ) (0.67 ) (1.97 ) On March 29, 2019, the Company launched an ATM program of our common shares for up to $40.0 million. The Company has issued 5,260,968 shares with net proceeds of $17.9 million under its At-the-Market as of December 31, 2019. The Company has not issued any shares subsequent to the balance sheet date. The remaining available proceeds through the offering is $21.4 million as of the date of this report. Based on the share price of the Company of $3.47 per share as of April 3, 2020 it would have resulted in 6,173,500 new shares being issued, if fully utilizing the remaining balance available through the ATM. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 14. SHAREHOLDERS’ EQUITY Authorized, issued and outstanding common shares roll-forward is as follows: Authorized Shares Issued and Out- standing Shares Common Stock Balance as of January 1, 2017 180,000,000 101,969,666 1,020 Common Shares Issued in Follow-on Offering - 40,000,000 400 Balance as of December 31, 2017 180,000,000 141,969,666 1,420 Authorization of additional authorized shares 180,000,000 - - Balance as of December 31, 2018 360,000,000 141,969,666 1,420 At-the-Market Offering - 5,260,968 52 Balance as of December 31, 2019 360,000,000 147,230,634 1,472 In December 2017, the Company completed an underwritten public offering of 40,000,000 common shares which increased its equity by $103.7 million. In December 2018, the Annual General Meeting of the Company approved to increase the Company’s authorized share capital from $1.8 million to $3.6 million. During 2019, the Company has issued 5,260,968 shares through the ATM program and raised net proceeds of $17.9 million. Additional Paid-in Capital Included in Additional Paid-in Capital is the Company’s Share Premium Fund as defined by Bermuda law. The Share Premium Fund cannot be distributed without complying with certain legal procedures designed to protect the creditors of the Company, including public notice to its creditors and a subsequent period for creditor notice of concern, regarding the Company’s intention, following shareholder approval, to transfer such funds to the Company’s Contributed Surplus Account and thereby make such funds available for distribution. On November 20, 2019, at the Company’s Annual General Meeting, the shareholders voted to reduce the Share Premium Fund by the amount of about $103.4 million. The reduction in share premium did not result in a distribution to shareholders but rather, the surplus resulting from such reduction was credited to the Company's contributed surplus account. The legal procedures related to this reduction were finalized in December 2019 upon which the amount became eligible for distribution. The Share Premium Fund was $17.9 million and $103.4 million as of December 31, 2019 and 2018, respectively. Credits and Charges to Additional Paid in Capital were a result of the accounting for the Company’s share based compensation programs and issuance of shares. Contributed Surplus Account The Company’s Contributed Surplus Account as defined by Bermuda law, consists of amounts previously recorded as share premium, transferred to Contributed Surplus Account when resolutions are adopted by the Company’s shareholders to make Share Premium Fund distributable or available for other purposes. As indicated by the laws governing the Company, the Contributed Surplus Account can be used for dividend distribution and to cover accumulated losses from its operations. The Company’s Board of Directors has in 2019 determined to transfer $308.8 million from the Contributed Surplus Account to cover Accumulated Deficits incurred as of December 31, 2018. We refer to the information above related to the reduction of $103.3 million of the Share Premium Fund that was credited to the Company’s Contributed Surplus Account. For the year ended December 31, 2019 and December 31, 2018, the Company paid a dividend of $14.3 million and $9.9 million, respectively, which was charged to the Contributed Surplus Account. The Company’s Contributed Surplus account was $567.2 million and $796.8 million per December 31, 2019 and 2018, respectively. Shareholders’ Rights Plan On June 16, 2017, the Board of Directors adopted a new shareholders’ rights agreement and declared a dividend of one preferred share purchase right to purchase one one-thousandth of a Series A Participating Preferred Share of the Company for each outstanding common share, par value $0.01 per share. The dividend was payable on June 26, 2017 to shareholders of record on that date. Each right entitles the registered holder to purchase from us one one-thousandth of a Series A Participating Preferred Share of the Company at an exercise price of $30.00, subject to adjustment. The Company can redeem the rights at any time prior to a public announcement that a person or group has acquired ownership of 15% or more of the Company’s common shares. As at December 31, 2019, no shares were issued pursuant to the plan. This shareholders’ rights plan was designed to enable us to protect shareholder interests in the event that an unsolicited attempt is made for a business combination with, or a takeover of, the Company. Our shareholders’ rights plan is not intended to deter offers that the Board determines are in the best interests of our shareholders. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES The Company may become a party to various legal proceedings generally incidental to its business and is subject to a variety of environmental and pollution control laws and regulations. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings. Although the ultimate disposition of legal proceedings cannot be predicted with certainty, it is the opinion of the Company’s management that the outcome of any claim which might be pending or threatened, either individually or on a combined basis, will not have a materially adverse effect on the financial position of the Company, but could materially affect the Company’s results of operations in a given year. No material claims have been filed against the Company for the fiscal years ended December 31, 2019 and 2018. |
FINANCIAL INSTRUMENTS AND OTHER
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2019 | |
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES [Abstract] | |
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | 16. FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES The majority of NAT and its subsidiaries’ transactions, assets and liabilities are denominated in United States dollars, the functional currency of the Company. There is no significant risk that currency fluctuations will have a negative effect on the value of the Company’s cash flows. The Company categorizes its fair value estimates using a fair value hierarchy based on the inputs used to measure fair value for those assets that are recorded on the Balance Sheet at fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following methods and assumptions were used to estimate the fair value of each class of financial instruments and other financial assets. - The carrying value of cash and cash equivalents and marketable securities, is a reasonable estimate of fair value. - The estimated fair value for the long-term debt is considered to be equal to the carrying values since it bears spreads and variable interest rates which approximate market rates. The carrying value and estimated fair value of the Company`s financial instruments at December 31, 2019 and 2018, are as follows: All figures in USD ‘000 Fair Value Hierarchy Level 2019 Fair Value 2019 Carrying Value 2018 Fair Value 2018 Carrying Value Recurring: Cash and Cash Equivalents 1 48,847 48,847 49,327 49,327 Restricted Cash 1 12,791 12,791 - - Credit Facility 2 - - (313,400 ) (313,400 ) 2019 Senior Secured Credit Facility* 2 (291,798 ) (291,798 ) - - Investment Securities 1 825 825 4,197 4,197 Vessel financing 2018 Newbuildings* 2 (119,867 ) (119,867 ) (127,140 ) (127,140 ) * The 2019 Senior Secured Credit Facility and Vessel financing 2018 Newbuildings carry a floating LIBOR interest rate, plus a margin and the fair value is assumed to equal the carrying value. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS On February 18, 2020, the Company declared a cash dividend of $0.07 per share in respect of the results for the fourth quarter of 2019. The dividend of $10.3 million was paid on March 16, 2020. On March 18, 2020, the Company announced a share buy-back program with a scope of up to 4.5 million common shares. On March 24, 2020, the Company declared a cash dividend of $0.14 cent per share in respect of the results for the first quarter of 2020. The payment date will be June 5, 2020. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (or COVID-19) as a pandemic. The Company has not yet experienced any material negative impacts to its business, results of operations, or financial position as a result of COVID-19. The future financial effects to the Company, if any, of COVID-19 cannot be reasonably estimated at this time. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Accounting | Basis of Accounting: |
Reclassifications | Reclassifications: |
Principles of Consolidation | Principles of Consolidation: |
Use of Estimates | Use of Estimates: |
Foreign Currency Translation | Foreign Currency Translation: . |
Revenue and Expense Recognition | Revenue and Expense Recognition: Spot Charters: As the Company’s performance obligations are services which are received and consumed by our customers as we perform such services, revenues are recognized over time proportionate to the days elapsed since the service commencement compared to the total days anticipated to complete the service. Freight is generally billed to the customers after the cargo has been discharged and the performance obligation fulfilled by the Company. The Company is responsible for paying voyage expenses and the charterer is responsible for any delay at the load and discharge ports. Demurrage earned during a spot charter represents a variable consideration. The Company recognizes such revenues in the voyage estimates only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Voyage estimates are reviewed and updated over the duration of the spot charter contract. When the Company’s tankers are operating on spot charters the vessels are traded fully at the risk and reward of the Company. The Company considers it appropriate to present the gross amount of earned revenue from the spot charter, showing voyage expenses related to the voyage separately in the Statements of Operations. In 2017, before the adoption of Topic 606 on January 1, 2018, the Company recognized voyage revenues ratably over the estimated length of each voyage, on a discharge-to-discharge basis. Time Charters: The Company has applied the practical expedient to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease component otherwise would be accounted for under the new revenue guidance (ASC 606); and both of the following are met: (1) the timing and patterns of transfer of the nonlease component and associated lease are the same; and (2) the lease component, if accounted for separately, would be classified as an operating lease. The pattern of revenue recognition has not changed as a result of implementation of ASC 842 Leases. |
Vessel Operating Expenses | Vessel Operating Expenses : |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash: |
Accounts Receivable, Net | Accounts Receivable, Net: |
Inventories | Inventories: |
Vessels | Vessels: |
Impairment of Vessels | Impairment of Vessels: |
Drydocking | Drydocking: |
Leases | Leases: |
Investments in Equity Method Investees | Investments in Equity Method Investees: |
Investment Securities | Investment Securities: |
Goodwill | Goodwill: |
Deferred Compensation Liability | Deferred Compensation Liability: |
Segment Information | Segment Information: |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: |
Deferred Financing Costs | Deferred Financing Costs: |
Share Based Compensation | Share Based Compensation: Restricted shares The fair value of restricted shares to employees is estimated based on the market price of the Company’s shares. The fair value of restricted shares granted to employees is measured at grant date and the Company records the compensation expense for such awards over the requisite service period. Stock options The Company grants stock options as incentive-based compensation to certain employees. The Company measures the cost of such awards using the grant date fair value of the award and recognizes that cost over the requisite service period. |
Income Taxes | Income Taxes: Two of the Company’s wholly-owned subsidiaries are located in Norway and are subject to income tax in that jurisdiction at 22%, 23%, and 24% for the years ended December 31, 2019, 2018 and 2017, respectively, of their taxable profit. The income tax expensed for year ended December 31, 2019, 2018 and 2017 was $71,000, $79,000, and $83,000, respectively. Deferred tax assets related to these entities are inconsequential. The Company does not have any unrecognized tax benefits, material accrued interests or penalties related to income taxes. |
Concentration of Credit Risk | Concentration of Credit Risk: For the year ended December 31, 2019, one customer accounted for 13.5% of the spot charter revenues. For the year ended December 31, 2018, one customer accounted for 10.5% of the spot charter revenues. For the year ended December 31, 2017, one customer accounted for 12% of the spot charter revenues. Accounts receivable, Net, as of December 31, 2019, and 2018 were $24.6 and $22.1 million, respectively. As of December 31, 2019, three charterers accounted for 48% of the outstanding accounts receivable, with 19%, 15% and 14%. As of December 31, 2018, three charterers accounted for 49% of the outstanding accounts receivable, with 24%, 13%, and 12%. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit losses (ASC 326), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model known as the current expected credit loss ("CECL") model that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to recognize as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. Unlike the incurred loss models under existing standards, the CECL model does not specify a threshold for the recognition of an impairment allowance. Rather, an entity will recognize its estimate of expected credit losses for financial assets as of the end of the reporting period. Credit impairment will be recognized as an allowance or contra-asset rather than as a direct write-down of the amortized cost basis of a financial asset. However, the carrying amount of a financial asset that is deemed uncollectible will be written off in a manner consistent with existing standards. The standard will be effective for the first reporting period within annual periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect any material impact on our financial assets from implementation of this new guidance. Recently Adopted Accounting Standards Effective January 1, 2019, the Company adopted ASC 842 Leases applying the modified retrospective method. We recognized an initial $1.9 million lease liability and a corresponding right-of-use lease asset to comply with the new lease standard. No cumulative effects have been recorded to the Company’s accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those prior periods (effective date method). The Company has applied the practical expedient for time-charter out contracts that include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer, to not separate non-lease components, or service element, from the associated lease component and instead to account for those components as a single component if the non-lease component otherwise would be accounted for under the new revenue guidance (ASC 606); and both of the following are met: (1) the timing and patterns of transfer of the non-lease component and associated lease are the same; and (2) the lease component, if accounted for separately, would be classified as an operating lease. The right-of-use asset, presented in Other-Non Current Assets, and lease liability is related to leased office space and the reduction in the carrying amount of the right-of-use asset during the twelve months ended December 31, 2019 has been $0.5 million. Certain of the Company’s lease contracts for office space include optional periods that are not included in the right-of-use asset and lease liability. The discount rate applied to the calculations is an incremental borrowing rate. The lease liability is presented in Other Current Liabilities and Operating Lease Liabilities and the lease cost is recognized in General and Administrative Expenses. ASC 842 allows lessees to elect as an accounting policy not to apply the provisions of ASC 842 to short term leases (i.e., leases with an original term of 12-months or less), which the Company has applied. Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Effective January 1, 2018, the Company adopted Revenue from Contracts with Customers (ASC 606). Effect on the Consolidated Balance sheets as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption ASSETS Total Current Assets 112,945 6,991 119,936 Voyages in Progress 15,075 8,111 23,186 Prepaid Expenses 3,830 (1,120 ) 2,710 Total Non-Current Assets 958,166 0 958,166 TOTAL ASSETS 1,071,111 6,991 1,078,102 EQUITY AND LIABILITIES Total Shareholders’ Equity 602,031 6,265 608,296 Total Current Liabilities 36,290 726 37,016 Accrued Voyage Expenses 5,063 726 5,789 Total Non-Current Liabilities 432,790 0 432,790 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,071,111 6,991 1,078,102 Effect on the Consolidated Statements of Operations as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption Voyage Revenues 289,016 2,819 291,835 Voyage Expenses (165,012 ) (627 ) (165,639 ) Net Operating Loss (38,616 ) 2,193 (36,423 ) Net Loss * (95,306 ) 2,193 (93,113 ) Total Comprehensive Loss (95,438 ) 2,193 (93,245 ) Effect on the Consolidated Statement of Cash Flows as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption Net Loss (95,306 ) 2,193 (93,113 ) Voyages in Progress (5,059 ) (2,819 ) (7,879 ) Prepaid Expenses and Other Current Assets 1,837 503 2,340 Accounts Payable and Accrued Liabilities (7,112 ) 124 (6,988 ) Net Cash (Used In)/Provided by Operating Activities (16,103 ) - (16,103 ) No other new accounting policies have been adopted since December 31, 2018. |
NATURE OF BUSINESS (Tables)
NATURE OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NATURE OF BUSINESS [Abstract] | |
Current Fleet | The Company’s current fleet consists of 23 Suezmax crude oil tankers of which the vast majority have been built in Korea. Vessel Built in Deadweight Tons Delivered to NAT in Nordic Freedom 2005 159,331 2005 Nordic Moon 2002 160,305 2006 Nordic Apollo 2003 159,998 2006 Nordic Cosmos 2003 159,999 2006 Nordic Grace 2002 149,921 2009 Nordic Mistral 2002 164,236 2009 Nordic Passat 2002 164,274 2010 Nordic Vega 2010 163,940 2010 Nordic Breeze 2011 158,597 2011 Nordic Zenith 2011 158,645 2011 Nordic Sprinter 2005 159,089 2014 Nordic Skier 2005 159,089 2014 Nordic Light 2010 158,475 2015 Nordic Cross 2010 158,475 2015 Nordic Luna 2004 150,037 2016 Nordic Castor 2004 150,249 2016 Nordic Sirius 2000 150,183 2016 Nordic Pollux 2003 150,103 2016 Nordic Star 2016 159,000 2016 Nordic Space 2017 159,000 2017 Nordic Tellus 2018 157,000 2018 Nordic Aquarius 2018 157,000 2018 Nordic Cygnus 2018 157,000 2018 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Effect on Condensed Consolidated Balance Sheet, Statement of Operations, and Cash Flow Statement | Effect on the Consolidated Balance sheets as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption ASSETS Total Current Assets 112,945 6,991 119,936 Voyages in Progress 15,075 8,111 23,186 Prepaid Expenses 3,830 (1,120 ) 2,710 Total Non-Current Assets 958,166 0 958,166 TOTAL ASSETS 1,071,111 6,991 1,078,102 EQUITY AND LIABILITIES Total Shareholders’ Equity 602,031 6,265 608,296 Total Current Liabilities 36,290 726 37,016 Accrued Voyage Expenses 5,063 726 5,789 Total Non-Current Liabilities 432,790 0 432,790 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,071,111 6,991 1,078,102 Effect on the Consolidated Statements of Operations as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption Voyage Revenues 289,016 2,819 291,835 Voyage Expenses (165,012 ) (627 ) (165,639 ) Net Operating Loss (38,616 ) 2,193 (36,423 ) Net Loss * (95,306 ) 2,193 (93,113 ) Total Comprehensive Loss (95,438 ) 2,193 (93,245 ) Effect on the Consolidated Statement of Cash Flows as of December 31, 2018 In thousands of USD As reported Adjustments Amounts before ASC606 adoption Net Loss (95,306 ) 2,193 (93,113 ) Voyages in Progress (5,059 ) (2,819 ) (7,879 ) Prepaid Expenses and Other Current Assets 1,837 503 2,340 Accounts Payable and Accrued Liabilities (7,112 ) 124 (6,988 ) Net Cash (Used In)/Provided by Operating Activities (16,103 ) - (16,103 ) |
VOYAGE REVENUES (Tables)
VOYAGE REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
VOYAGE REVENUES [Abstract] | |
Voyage Revenues | Our voyage revenues consist of time charter revenues and spot charter revenues with the following split: All amounts in USD ‘000 2019 2018 2017 Spot charter revenues 283,007 259,978 257,495 Time charter revenues 34,213 29,038 39,646 Total Voyage Revenues 317,220 289,016 297,141 *Spot charter revenues for 2019 and 2018 are presented in accordance we ASC 606 Revenue from Contracts with Customers. The comparative information for 2017 has not been restated. |
Future Minimum Revenues | The future minimum revenues as at December 31, 2019 related to time charter revenues are as follows: All amounts in USD ‘000 Amount 2020 27,932 2021 7,317 2022 - Future minimum revenues 35,249 |
VESSELS (Tables)
VESSELS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
VESSELS [Abstract] | |
Vessels | The estimated useful life of a vessel is 25 years from the date the vessel is delivered from the shipyard. All figures in USD ‘000 2019 2018 Vessels as of January 1 1,307,087 1,769,967 Additions Vessels 2,531 169,446 Disposals Vessels - (632,326 ) Drydocking as of January 1 52,331 119,303 Additions Drydocking 7,618 8,210 Disposals Drydocking - (75,182 ) Total Vessels and Drydocking 1,369,567 1,359,418 Less Accumulated Depreciation (469,570 ) (405,660 ) * Less Accumulated Impairment Loss on Vessels - - ** Vessels 899,997 953,758 *Depreciation charges of $497.0 million related to vessels disposed of in 2018 is excluded ** Impairment charges of $2.2 million and $110.5 million related to vessels disposed of in 2018 is excluded |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
Other Non-current Assets | All figures in USD ‘000 2019 2018 Fixture, Furniture and Equipment 65 128 Right of Use Asset* 1,412 - Other 57 83 Total as of December 31, 1,534 211 * relates to certain office lease contracts. Optional periods are not included in the calculation. |
SHARE-BASED COMPENSATION PLAN (
SHARE-BASED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLAN [Abstract] | |
Share-based Payment Award Stock Options Valuation Assumptions | The Company has used the Black-Scholes option pricing model to measure the grant date fair value of the options with the following assumptions applied to the model; Options with two year vesting Options with three year vesting Volatility 57.5 % 52.5 % Dividend yield 10.0 % 10.0 % Risk-free interest rate 1.64 % 1.65 % Weighted-average grant date fair value $ 0.59 $ 0.58 |
LONG-TERM DEBT AND CURRENT PO_2
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT [Abstract] | |
Aggregate Annual Principal Payments of Debt | As of December 31, 2019 the aggregate annual principal payments required to be made under the Company’s debt facilities are as follows: Debt payments in $'000s Total 2020 2021 2022 2023 2024 More than 5 Senior Secured Credit Facility (1) 291,798 18,749 15,305 15,305 15,305 227,134 - Financing of 2018 Newbuildings (2) 119,867 7,630 7,960 8,327 8,711 9,138 78,101 Total 411,665 26,379 23,265 23,632 24,016 236,272 78,101 (1) Refers to obligation to repay indebtness outstanding as of December 31, 2019 under the 2019 Senior Secured Credit Facility (2) Refers to obligation to repay indebtness outstanding as of December 31, 2019 for financing of the 2018 Newbuildings |
INTEREST EXPENSES (Tables)
INTEREST EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTEREST EXPENSES [Abstract] | |
Interest Expense on Long-term Debt | Interest expenses consist of interest expense on the long-term debt, the commitment fee and amortization of deferred financing costs related to the Credit Facility described in Note 9. All amounts in USD ‘000 2019 2018 2017 Interest Expenses, net of capitalized interest 34,018 29,753 18,286 Commitment Fee - 3,325 760 Amortization of Deferred Financing Costs 4,372 1,470 1,393 Other financial costs - 1 25 Total Interest Expenses 38,390 34,549 20,464 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued Liabilities | All figures in USD ‘000 2019 2018 Accrued Interest 163 1,598 Accrued Expenses 11,569 7,362 Settlement Deferred Compensation Liabilities 3,830 - Total as of December 31, 15,562 8,960 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS (LOSS) PER SHARE [Abstract] | |
Basic and Diluted Earnings Per Share | Basic earnings per share (“EPS”) are computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. All figures in USD except number of shares and earnings (loss) per common share 2019 2018 2017 Numerator Net Loss (10,352 ) (95,306 ) (204,969 ) Denominator: Basic - Weighted Average Common Shares Outstanding 142,571,361 141,969,666 103,832,680 Dilutive – Weighted Average Common Shares Outstanding 142,571,361 141,969,666 103,832,680 Loss per Common Share: Basic (0.07 ) (0.67 ) (1.97 ) Diluted (0.07 ) (0.67 ) (1.97 ) |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Authorized, Issued and Outstanding Common Shares Roll-forward | Authorized, issued and outstanding common shares roll-forward is as follows: Authorized Shares Issued and Out- standing Shares Common Stock Balance as of January 1, 2017 180,000,000 101,969,666 1,020 Common Shares Issued in Follow-on Offering - 40,000,000 400 Balance as of December 31, 2017 180,000,000 141,969,666 1,420 Authorization of additional authorized shares 180,000,000 - - Balance as of December 31, 2018 360,000,000 141,969,666 1,420 At-the-Market Offering - 5,260,968 52 Balance as of December 31, 2019 360,000,000 147,230,634 1,472 |
FINANCIAL INSTRUMENTS AND OTH_2
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES [Abstract] | |
Carrying Value of Estimated Fair Value of Financial Instruments | The carrying value and estimated fair value of the Company`s financial instruments at December 31, 2019 and 2018, are as follows: All figures in USD ‘000 Fair Value Hierarchy Level 2019 Fair Value 2019 Carrying Value 2018 Fair Value 2018 Carrying Value Recurring: Cash and Cash Equivalents 1 48,847 48,847 49,327 49,327 Restricted Cash 1 12,791 12,791 - - Credit Facility 2 - - (313,400 ) (313,400 ) 2019 Senior Secured Credit Facility* 2 (291,798 ) (291,798 ) - - Investment Securities 1 825 825 4,197 4,197 Vessel financing 2018 Newbuildings* 2 (119,867 ) (119,867 ) (127,140 ) (127,140 ) * The 2019 Senior Secured Credit Facility and Vessel financing 2018 Newbuildings carry a floating LIBOR interest rate, plus a margin and the fair value is assumed to equal the carrying value. |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2019Vesselt | |
NATURE OF BUSINESS [Abstract] | |
Total number of vessels | Vessel | 23 |
Number of operating vessels | Vessel | 23 |
Average approximate deadweight tons per vessel | 156,000 |
Nordic Freedom [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,331 |
Nordic Moon [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 160,305 |
Nordic Apollo [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,998 |
Nordic Cosmos [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,999 |
Nordic Grace [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 149,921 |
Nordic Mistral [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 164,236 |
Nordic Passat [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 164,274 |
Nordic Vega [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 163,940 |
Nordic Breeze [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 158,597 |
Nordic Zenith [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 158,645 |
Nordic Sprinter [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,089 |
Nordic Skier [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,089 |
Nordic Light [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 158,475 |
Nordic Cross [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 158,475 |
Nordic Luna [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 150,037 |
Nordic Castor [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 150,249 |
Nordic Sirius [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 150,183 |
Nordic Pollux [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 150,103 |
Nordic Star [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,000 |
Nordic Space [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 159,000 |
Nordic Tellus [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 157,000 |
Nordic Aquarius [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 157,000 |
Nordic Cygnus [Member] | |
Current Fleet [Abstract] | |
Deadweight tons | 157,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)VesselAgreementSegmentSubsidiaryCustomerCharter | Dec. 31, 2018USD ($)VesselCustomerCharter | Dec. 31, 2017USD ($)VesselCustomer | Dec. 31, 2016USD ($) | ||
Cash, Cash Equivalents and Restricted Cash [Abstract] | |||||
Original maturities of deposits classified as cash and cash equivalents | 3 months | ||||
Vessels [Abstract] | |||||
Estimate useful life of vessel | 25 years | ||||
Market rates for the initial period | 2 years | ||||
Historical and average spot market rate | 15 years | ||||
Salvage value of the vessel | $ 8,000 | ||||
Drydocking [Abstract] | |||||
Period when vessels are required to be drydocked, minimum | 30 months | ||||
Period when vessels are required to be drydocked, maximum | 60 months | ||||
Deferred Compensation Liability [Abstract] | |||||
Number of individual deferred compensation agreements | Agreement | 2 | ||||
Segment Information [Abstract] | |||||
Number of segments | Segment | 1 | ||||
Number of types of vessel | Vessel | 1 | ||||
Income Tax [Abstract] | |||||
Income tax rate | 0.00% | ||||
Income tax expense | $ 71 | $ 79 | $ 83 | ||
Concentration of Risk [Abstract] | |||||
Accounts receivable, net | 24,600 | 22,100 | |||
Recent Accounting Pronouncements [Abstract] | |||||
Right-of-use asset | [1] | 1,412 | $ 0 | ||
Number of vessels affected | Vessel | 15 | 19 | |||
Accumulated deficit | (10,352) | $ (308,803) | |||
ASSETS [Abstract] | |||||
Total Current Assets | 129,372 | 112,945 | |||
Voyages in Progress | 13,124 | 15,075 | |||
Prepaid Expenses | 3,383 | 3,830 | |||
Total Non-Current Assets | 901,531 | 958,166 | |||
Total Assets | 1,030,903 | 1,071,111 | |||
EQUITY AND LIABILITIES [Abstract] | |||||
Total Shareholders' Equity | 595,424 | 602,031 | $ 711,064 | $ 871,049 | |
Total Current Liabilities | 59,028 | 36,290 | |||
Accrued Voyage Expenses | 11,524 | 5,063 | |||
Total Non-Current Liabilities | 376,451 | 432,790 | |||
Total Liabilities and Shareholders' Equity | 1,030,903 | 1,071,111 | |||
Effect on the Condensed Consolidated Statement of Operations [Abstract] | |||||
Voyage Revenues | 317,220 | 289,016 | 297,141 | ||
Voyage Expenses | (141,770) | (165,012) | (142,465) | ||
Net Operating Loss | 31,971 | (38,616) | (175,690) | ||
Net Loss | (10,352) | (95,306) | (204,969) | ||
Total Comprehensive Loss | (10,430) | (95,438) | (205,119) | ||
Effect on the Condensed Cash Flow Statement [Abstract] | |||||
Net Loss | (10,352) | (95,306) | (204,969) | ||
Voyages in Progress | 1,951 | (5,059) | 20,303 | ||
Prepaid Expenses and Other Current Assets | (1,068) | 1,837 | (904) | ||
Accounts Payable and Accrued Liabilities | 10,122 | (7,112) | 1,072 | ||
Net Cash (Used In)/Provided by Operating Activities | $ 52,858 | (16,103) | $ 31,741 | ||
Adjustments [Member] | |||||
ASSETS [Abstract] | |||||
Total Current Assets | 6,991 | ||||
Voyages in Progress | 8,111 | ||||
Prepaid Expenses | (1,120) | ||||
Total Non-Current Assets | 0 | ||||
Total Assets | 6,991 | ||||
EQUITY AND LIABILITIES [Abstract] | |||||
Total Shareholders' Equity | 6,265 | ||||
Total Current Liabilities | 726 | ||||
Accrued Voyage Expenses | 726 | ||||
Total Non-Current Liabilities | 0 | ||||
Total Liabilities and Shareholders' Equity | 6,991 | ||||
Effect on the Condensed Consolidated Statement of Operations [Abstract] | |||||
Voyage Revenues | 2,819 | ||||
Voyage Expenses | (627) | ||||
Net Operating Loss | 2,193 | ||||
Net Loss | 2,193 | ||||
Total Comprehensive Loss | 2,193 | ||||
Effect on the Condensed Cash Flow Statement [Abstract] | |||||
Net Loss | 2,193 | ||||
Voyages in Progress | (2,819) | ||||
Prepaid Expenses and Other Current Assets | 503 | ||||
Accounts Payable and Accrued Liabilities | 124 | ||||
Net Cash (Used In)/Provided by Operating Activities | 0 | ||||
Amounts Before ASC 606 Adoption [Member] | |||||
ASSETS [Abstract] | |||||
Total Current Assets | 119,936 | ||||
Voyages in Progress | 23,186 | ||||
Prepaid Expenses | 2,710 | ||||
Total Non-Current Assets | 958,166 | ||||
Total Assets | 1,078,102 | ||||
EQUITY AND LIABILITIES [Abstract] | |||||
Total Shareholders' Equity | 608,296 | ||||
Total Current Liabilities | 37,016 | ||||
Accrued Voyage Expenses | 5,789 | ||||
Total Non-Current Liabilities | 432,790 | ||||
Total Liabilities and Shareholders' Equity | 1,078,102 | ||||
Effect on the Condensed Consolidated Statement of Operations [Abstract] | |||||
Voyage Revenues | 291,835 | ||||
Voyage Expenses | (165,639) | ||||
Net Operating Loss | (36,423) | ||||
Net Loss | (93,113) | ||||
Total Comprehensive Loss | (93,245) | ||||
Effect on the Condensed Cash Flow Statement [Abstract] | |||||
Net Loss | (93,113) | ||||
Voyages in Progress | (7,879) | ||||
Prepaid Expenses and Other Current Assets | 2,340 | ||||
Accounts Payable and Accrued Liabilities | (6,988) | ||||
Net Cash (Used In)/Provided by Operating Activities | $ (16,103) | ||||
Ballast Tank [Member] | |||||
Drydocking [Abstract] | |||||
Improvements amortized over a period | 8 years | ||||
Norwegian Tax Administration [Member] | |||||
Income Tax [Abstract] | |||||
Number of wholly owned subsidiaries | Subsidiary | 2 | ||||
Income tax rate | 22.00% | 23.00% | 24.00% | ||
Income tax expense | $ 71 | $ 79 | $ 83 | ||
Accounts Receivable [Member] | |||||
Concentration of Risk [Abstract] | |||||
Concentration of credit risk percentage | 48.00% | 49.00% | |||
Number of charterers accounted for outstanding amount | Charter | 3 | 3 | |||
Accounts Receivable [Member] | Customer One [Member] | |||||
Concentration of Risk [Abstract] | |||||
Concentration of credit risk percentage | 19.00% | 24.00% | |||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentration of Risk [Abstract] | |||||
Concentration of credit risk percentage | 15.00% | 13.00% | |||
Accounts Receivable [Member] | Customer Three [Member] | |||||
Concentration of Risk [Abstract] | |||||
Concentration of credit risk percentage | 14.00% | 12.00% | |||
Revenues [Member] | |||||
Concentration of Risk [Abstract] | |||||
Number of customers accounted for spot charter revenues | Customer | 1 | 1 | 1 | ||
Concentration of credit risk percentage | 13.50% | 10.50% | 12.00% | ||
ASC 606 [Member] | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Right-of-use asset | $ 500 | $ 1,900 | |||
Lease liability | $ 500 | 1,900 | |||
Accumulated deficit | $ (6,300) | $ (4,100) | |||
EQUITY AND LIABILITIES [Abstract] | |||||
Total Shareholders' Equity | $ 706,992 | ||||
[1] | relates to certain office lease contracts. Optional periods are not included in the calculation. |
VOYAGE REVENUES (Details)
VOYAGE REVENUES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disaggregation of Revenue [Abstract] | |||||
Total Voyage Revenues | $ 317,220 | $ 289,016 | $ 297,141 | ||
Future Minimum Revenues [Abstract] | |||||
Capitalized cost | $ 1,000 | 1,100 | |||
Maximum [Member] | |||||
Future Minimum Revenues [Abstract] | |||||
Term of voyage contract | 1 year | ||||
Spot Charter [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Total Voyage Revenues | $ 283,007 | [1] | 259,978 | [1] | 257,495 |
Time Charter [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Total Voyage Revenues | 34,213 | $ 29,038 | $ 39,646 | ||
Future Minimum Revenues [Abstract] | |||||
2020 | 27,932 | ||||
2021 | 7,317 | ||||
2022 | 0 | ||||
Future minimum revenues | $ 35,249 | ||||
[1] | Spot charter revenues for 2019 and 2018 are presented in accordance we ASC 606 Revenue from Contracts with Customers. The comparative information for 2017 has not been restated. |
VESSELS (Details)
VESSELS (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)Vessel | Dec. 31, 2018USD ($)Vessel | Dec. 31, 2017USD ($) | ||
VESSELS [Abstract] | ||||
Number of vessels | Vessel | 23 | 23 | ||
Residual value | $ 8,000 | |||
Estimated useful life | 25 years | |||
Vessels [Abstract] | ||||
Total | $ 1,369,567 | $ 1,359,418 | ||
Less Accumulated Depreciation | (469,570) | (405,660) | [1] | |
Less Accumulated Impairment Loss on Vessels | 0 | 0 | [2] | |
Vessels | 899,997 | 953,758 | ||
Depreciation charges disposed | 497,000 | |||
Impairment loss on vessels | $ 0 | 2,168 | $ 110,480 | |
Number of vessels the company taken through periodical maintenance survey | Vessel | 3 | |||
Number of vessels in drydock for periodical maintenance | Vessel | 2 | |||
Vessels [Member] | ||||
Vessels [Abstract] | ||||
Additions | $ 2,531 | 169,446 | ||
Disposals | 0 | (632,326) | ||
Total | 1,307,087 | 1,769,967 | ||
Drydocking [Member] | ||||
Vessels [Abstract] | ||||
Additions | 7,618 | 8,210 | ||
Disposals | 0 | (75,182) | ||
Total | $ 52,331 | $ 119,303 | ||
[1] | Depreciation charges of $497.0 million related to vessels disposed of in 2018 is excluded | |||
[2] | Impairment charges of $2.2 million and $110.5 million related to vessels disposed of in 2018 is excluded |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Vesselshares | Dec. 31, 2018USD ($)Vessel | Dec. 31, 2017USD ($) | |
Equity Method Investment [Abstract] | |||
Number of vessels operated | 23 | 23 | |
Carrying value of investment | $ | $ 800 | $ 4,200 | |
Consideration for shares disposed | $ | 17,922 | 0 | $ 103,748 |
Recognized gain (loss) from changes in fair market value | $ | $ (3,200) | $ 0 | |
Nordic American Offshore Limited [Member] | |||
Equity Method Investment [Abstract] | |||
Shares issued (in shares) | shares | 187,815 | ||
Number of shares held (in shares) | shares | 811,538 | ||
Shares held percentage of common stock outstanding | 3.16% | ||
Hermitage Offshore Services Limited [Member] | Platform Supply Vessels [Member] | |||
Equity Method Investment [Abstract] | |||
Number of vessels operated | 10 | ||
Hermitage Offshore Services Limited [Member] | Anchor Handling Vessels [Member] | |||
Equity Method Investment [Abstract] | |||
Number of vessels operated | 2 | ||
Hermitage Offshore Services Limited [Member] | Crew Boats [Member] | |||
Equity Method Investment [Abstract] | |||
Number of vessels operated | 11 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Board Member [Member] | |||
Related Party [Abstract] | |||
Accounts payable | $ 0 | $ 0 | $ 0 |
Costs and expenses, related party | 300 | 400 | 200 |
Receivables from related party | 300 | 200 | |
Hermitage Offshore Services Limited [Member] | |||
Related Party [Abstract] | |||
Management fee received | 83 | 100 | 100 |
Costs and expenses, related party | $ 900 | $ 2,300 | $ 2,300 |
Hermitage Offshore Services Limited [Member] | Maximum [Member] | |||
Related Party [Abstract] | |||
Ownership interest | 5.00% |
DEFERRED COMPENSATION LIABILI_2
DEFERRED COMPENSATION LIABILITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post Retirement Benefits [Abstract] | ||||
Restricted deposit account | $ 10,000 | |||
Amount of final settlement agreement to terminate the compensation agreement with a corresponding payment | $ 11,000 | |||
Total expense (gain) recognized | $ (10,970) | $ (860) | $ 1,303 | |
Chairman, President and CEO [Member] | ||||
Post Retirement Benefits [Abstract] | ||||
Required service period | 15 years | |||
Maximum benefit as a percentage of salary | 66.00% | |||
Retirement age | 72 years | |||
Chief Executive Officer and Chief Financial Officer [Member] | ||||
Post Retirement Benefits [Abstract] | ||||
Total expense (gain) recognized | $ (200) | $ (700) | $ 1,000 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS [Abstract] | |||
Fixture, Furniture and Equipment | $ 65 | $ 128 | |
Right of Use Asset | [1] | 1,412 | 0 |
Other | 57 | 83 | |
Total | $ 1,534 | $ 211 | |
[1] | relates to certain office lease contracts. Optional periods are not included in the calculation. |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2011 | Dec. 31, 2015 | |
Share-based Compensation Grant Date Fair Value of Options [Abstract] | |||||
Compensation expense related to the stock option awards | $ 156 | $ 413 | $ 522 | ||
Options with Two Year Vesting [Member] | Stock Option [Member] | |||||
Share-based Compensation Grant Date Fair Value of Options [Abstract] | |||||
Volatility | 57.50% | ||||
Dividend yield | 10.00% | ||||
Risk-free interest rate | 1.64% | ||||
Weighted-average grant date fair value (in dollars per share) | $ 0.59 | ||||
Options with Three Year Vesting [Member] | Stock Option [Member] | |||||
Share-based Compensation Grant Date Fair Value of Options [Abstract] | |||||
Volatility | 52.50% | ||||
Dividend yield | 10.00% | ||||
Risk-free interest rate | 1.65% | ||||
Weighted-average grant date fair value (in dollars per share) | $ 0.58 | ||||
2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation [Abstract] | |||||
Granted (in shares) | 92,165 | 400,000 | |||
Shares available for future issuance (in shares) | 137,665 | ||||
Granted during the year (in dollars per share) | $ 14.38 | ||||
Common shares vested (in shares) | 87,665 | ||||
Treasury shares (in shares) | 42,000 | 22,000 | |||
Total compensation cost for the period | $ 100 | $ 400 | $ 500 | ||
2011 Equity Incentive Plan [Member] | Employees [Member] | |||||
Share-based Compensation [Abstract] | |||||
Forfeiture shares (in shares) | 20,000 | ||||
Amended 2011 Equity Incentive Plan [Member] | Stock Option [Member] | |||||
Share-based Compensation [Abstract] | |||||
Shares available for future issuance (in shares) | 1,000,000 | ||||
Stock option exercise price (in dollars per share) | $ 4.70 | ||||
Share-based Compensation Grant Date Fair Value of Options [Abstract] | |||||
Compensation expense related to the stock option awards | $ 100 | ||||
Unrecognized cost related to non-vested stock options | $ 500 | ||||
Average vesting period | 2 years 1 month 6 days | ||||
Amended 2011 Equity Incentive Plan [Member] | Options with Two Year Vesting [Member] | Stock Option [Member] | |||||
Share-based Compensation [Abstract] | |||||
Stock option grants (in shares) | 755,000 | ||||
Vesting period | 2 years | ||||
Amended 2011 Equity Incentive Plan [Member] | Options with Three Year Vesting [Member] | Stock Option [Member] | |||||
Share-based Compensation [Abstract] | |||||
Stock option grants (in shares) | 234,000 | ||||
Vesting period | 3 years |
LONG-TERM DEBT AND CURRENT PO_3
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT (Details) $ in Thousands | Mar. 29, 2019USD ($) | Feb. 12, 2019USD ($)Vessel | Dec. 01, 2017USD ($) | Oct. 31, 2018Building | Aug. 31, 2018Building | Jul. 31, 2018Building | Apr. 08, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)Vesselshares | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($) | |
Line of Credit Facility [Abstract] | |||||||||||||
Current portion of long-term debt | $ 23,537 | $ 23,537 | $ 18,692 | ||||||||||
Contractual Obligation [Abstract] | |||||||||||||
2020 | 26,379 | 26,379 | |||||||||||
2021 | 23,265 | 23,265 | |||||||||||
2022 | 23,632 | 23,632 | |||||||||||
2023 | 24,016 | 24,016 | |||||||||||
2024 | 236,272 | 236,272 | |||||||||||
More than 5 years | 78,101 | 78,101 | |||||||||||
Total | 411,665 | 411,665 | |||||||||||
Liquidity Outlook [Abstract] | |||||||||||||
Gross amount after deducting sales commissions and other fees and expenses | 18,600 | ||||||||||||
Net amount after deducting sales commissions and other fees and expenses | $ 17,900 | ||||||||||||
Common shares issued and sold (in shares) | shares | 5,260,968 | ||||||||||||
Maximum [Member] | |||||||||||||
Liquidity Outlook [Abstract] | |||||||||||||
At-the-market Offering of Common Stock | $ 40,000 | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Maximum borrowing capacity | $ 500,000 | $ 430,000 | |||||||||||
Deferred financing costs | 1,700 | $ 4,600 | |||||||||||
Drawn amount | 313,400 | ||||||||||||
Repayment of debt | $ 313,400 | ||||||||||||
Senior Secured Credit Facility [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Maximum borrowing capacity | 306,100 | ||||||||||||
Maturity date | Feb. 28, 2024 | ||||||||||||
Deferred financing costs | 13,000 | 13,000 | $ 13,000 | ||||||||||
Deferred finance costs, non-cash portion | $ 6,100 | ||||||||||||
Drawn amount | 291,800 | 291,800 | |||||||||||
Current portion of long-term debt | 18,700 | 18,700 | |||||||||||
Amount of excess cash flow payment related to earnings | 3,400 | ||||||||||||
Repayment of debt | $ 14,300 | ||||||||||||
Debt instrument term | 5 years | ||||||||||||
Loan amortizing, maturity period | 20 years | ||||||||||||
Discretionary excess cash mechanism for the lender that equals to net earnings from collateral vessels | 50.00% | ||||||||||||
Debt covenants, minimum liquidity | $ 30,000 | ||||||||||||
Debt covenants percentage in loan-to-vessel ratio | 70.00% | ||||||||||||
Number of vessels delivered | Vessel | 3 | ||||||||||||
Contractual Obligation [Abstract] | |||||||||||||
2020 | [1] | 18,749 | $ 18,749 | ||||||||||
2021 | [1] | 15,305 | 15,305 | ||||||||||
2022 | [1] | 15,305 | 15,305 | ||||||||||
2023 | [1] | 15,305 | 15,305 | ||||||||||
2024 | [1] | 227,134 | 227,134 | ||||||||||
More than 5 years | [1] | 0 | 0 | ||||||||||
Total | [1] | 291,798 | 291,798 | ||||||||||
Senior Secured Credit Facility [Member] | Subsequent Event [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Drawn amount | $ 284,500 | ||||||||||||
Repayment of debt | $ 7,300 | ||||||||||||
Financing of 2018 New buildings [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Deferred financing costs | 2,300 | 2,300 | |||||||||||
Drawn amount | 119,900 | $ 119,900 | 127,100 | ||||||||||
Number of new buildings | Building | 3 | 3 | 3 | ||||||||||
Percentage of purchase price expected to pay by lending provider | 77.50% | ||||||||||||
Proceeds from vessel financing | $ 12,500 | ||||||||||||
Term of bareboat charter agreement | 10 years | ||||||||||||
Obligation to purchase the vessels | 13,600 | ||||||||||||
First flexibility period to purchase the vessels | 60 months | ||||||||||||
Second flexibility period to purchase the vessels | 84 months | ||||||||||||
Minimum value adjusted equity | $ 175,000 | ||||||||||||
Minimum value adjusted equity ratio | 25.00% | ||||||||||||
Minimum liquidity value | $ 20,000 | ||||||||||||
Number of vessels delivered | Vessel | 3 | ||||||||||||
Long term debt current | 7,600 | $ 7,600 | $ 7,300 | ||||||||||
Contractual Obligation [Abstract] | |||||||||||||
2020 | [2] | 7,630 | 7,630 | ||||||||||
2021 | [2] | 7,960 | 7,960 | ||||||||||
2022 | [2] | 8,327 | 8,327 | ||||||||||
2023 | [2] | 8,711 | 8,711 | ||||||||||
2024 | [2] | 9,138 | 9,138 | ||||||||||
More than 5 years | [2] | 78,101 | 78,101 | ||||||||||
Total | [2] | $ 119,867 | $ 119,867 | ||||||||||
Financing of 2018 New buildings [Member] | Minimum [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Interest rate | 6.50% | ||||||||||||
Financing of 2018 New buildings [Member] | Maximum [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Interest rate | 6.72% | ||||||||||||
[1] | Refers to obligation to repay indebtness outstanding as of December 31, 2019 under the 2019 Senior Secured Credit Facility | ||||||||||||
[2] | Refers to obligation to repay indebtness outstanding as of December 31, 2019 for financing of the 2018 Newbuildings |
INTEREST EXPENSES (Details)
INTEREST EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST EXPENSES [Abstract] | |||
Interest Expenses, net of capitalized interest | $ 34,018 | $ 29,753 | $ 18,286 |
Commitment Fee | 0 | 3,325 | 760 |
Amortization of Deferred Financing Costs | 4,372 | 1,470 | 1,393 |
Other financial costs | 0 | 1 | 25 |
Total Interest Expenses | 38,390 | 34,549 | 20,464 |
Interest expenses, capitalized interest | $ 0 | $ 2,600 | $ 2,500 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ACCRUED LIABILITIES [Abstract] | ||
Accrued Interest | $ 163 | $ 1,598 |
Accrued Expenses | 11,569 | 7,362 |
Settlement Deferred Compensation Liabilities | 3,830 | 0 |
Total | $ 15,562 | $ 8,960 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 03, 2020 | Mar. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Numerator [Abstract] | |||||
Net Loss | $ (10,352) | $ (95,306) | $ (204,969) | ||
Denominator [Abstract] | |||||
Basic - Weighted Average Common Shares Outstanding (in shares) | 142,571,361 | 141,969,666 | 103,832,680 | ||
Dilutive - Weighted Average Common Shares Outstanding (in shares) | 142,571,361 | 141,969,666 | 103,832,680 | ||
Loss per Common Share [Abstract] | |||||
Basic (in dollars per share) | $ (0.07) | $ (0.67) | $ (1.97) | ||
Diluted (in dollars per share) | $ (0.07) | $ (0.67) | $ (1.97) | ||
Earnings Per Share, Other Disclosures [Abstract] | |||||
Shares issued value | $ 40,000 | ||||
Proceeds from issuance of common stock | $ 17,922 | $ 0 | $ 103,748 | ||
Shares issued (in shares) | 5,260,968 | ||||
Subsequent Event [Member] | |||||
Earnings Per Share, Other Disclosures [Abstract] | |||||
Proceeds from issuance of common stock | $ 21,400 | ||||
Shares price (in dollars per share) | $ 3.47 | ||||
Shares issued (in shares) | 6,173,500 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 19, 2019 | Mar. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 16, 2017 |
Authorized Shares [Roll forward] | ||||||
Balance at beginning of period (in shares) | 360,000,000 | |||||
Balance at end of period (in shares) | 360,000,000 | 360,000,000 | ||||
Issued and Outstanding Shares [Roll forward] | ||||||
Balance at beginning of period, issued (in shares) | 141,969,666 | |||||
Balance at beginning of period, outstanding (in shares) | 141,969,666 | |||||
Common Shares Issued in Follow-on Offering (in shares) | 5,260,968 | |||||
Balance at end of period, issued (in shares) | 147,230,634 | 141,969,666 | ||||
Balance at end of period, outstanding (in shares) | 147,230,634 | 141,969,666 | ||||
Common Stock [Roll forward] | ||||||
Common Shares Issued in Follow-on Offering, value | $ 17,922 | $ 103,748 | ||||
Common Stock [Abstract] | ||||||
Proceeds from issuance of common stock | 17,922 | $ 0 | 103,748 | |||
Additional Paid in Capital [Abstract] | ||||||
Reduction of share premium | $ (103,400) | 0 | $ 0 | |||
Share premium fund | 17,900 | 103,400 | ||||
Contributed Surplus Account [Abstract] | ||||||
Reduction of contributed surplus | (308,800) | |||||
Dividend paid | 14,300 | 9,900 | ||||
Contribution to surplus account | $ 567,200 | $ 796,800 | ||||
Shareholders' Rights Plan [Abstract] | ||||||
Common Share, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Shareholders' Rights Agreement [Member] | ||||||
Shareholders' Rights Plan [Abstract] | ||||||
Preferred share purchase right | 0.001 | |||||
Common Share, par value (in dollars per share) | $ 0.01 | |||||
Shareholders rights, exercise price (in dollars per share) | $ 30 | |||||
Percentage of common share ownership | 15.00% | |||||
Common Stock [Member] | ||||||
Authorized Shares [Roll forward] | ||||||
Balance at beginning of period (in shares) | 360,000,000 | 180,000,000 | 180,000,000 | |||
Authorization of additional authorized shares (in shares) | 180,000,000 | |||||
Balance at end of period (in shares) | 360,000,000 | 360,000,000 | 180,000,000 | |||
Issued and Outstanding Shares [Roll forward] | ||||||
Balance at beginning of period, issued (in shares) | 141,969,666 | 141,969,666 | 101,969,666 | |||
Balance at beginning of period, outstanding (in shares) | 141,969,666 | 141,969,666 | 101,969,666 | |||
Common Shares Issued in Follow-on Offering (in shares) | 5,260,968 | 40,000,000 | ||||
Balance at end of period, issued (in shares) | 147,230,634 | 141,969,666 | 141,969,666 | |||
Balance at end of period, outstanding (in shares) | 147,230,634 | 141,969,666 | 141,969,666 | |||
Common Stock [Roll forward] | ||||||
Balance at beginning of period | $ 1,420 | $ 1,420 | $ 1,020 | |||
Common Shares Issued in Follow-on Offering, value | 52 | 400 | ||||
Balance at end of period | 1,472 | $ 1,420 | 1,420 | |||
Additional Paid in Capital [Abstract] | ||||||
Reduction of share premium | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Claim | Dec. 31, 2019 | Dec. 31, 2018 |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
Number of claims filed | 0 | 0 |
FINANCIAL INSTRUMENTS AND OTH_3
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Investment Securities | $ 825 | $ 0 | |
Fair Value [Member] | Level 1 [Member] | Recurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Cash and Cash Equivalents | 48,847 | 49,327 | |
Restricted Cash | 12,791 | 0 | |
Investment Securities | 825 | 4,197 | |
Fair Value [Member] | Level 2 [Member] | Recurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Credit Facility | 0 | (313,400) | |
2019 Senior Secured Credit Facility | [1] | (291,798) | 0 |
Vessel financing 2018 Newbuildings | [1] | (119,867) | (127,140) |
Carrying Value [Member] | Level 1 [Member] | Recurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Cash and Cash Equivalents | 48,847 | 49,327 | |
Restricted Cash | 12,791 | 0 | |
Investment Securities | 825 | 4,197 | |
Carrying Value [Member] | Level 2 [Member] | Recurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Credit Facility | 0 | (313,400) | |
2019 Senior Secured Credit Facility | [1] | (291,798) | 0 |
Vessel financing 2018 Newbuildings | [1] | $ (119,867) | $ (127,140) |
[1] | The 2019 Senior Secured Credit Facility and Vessel financing 2018 Newbuildings carry a floating LIBOR interest rate, plus a margin and the fair value is assumed to equal the carrying value. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 24, 2020 | Feb. 18, 2020 | Mar. 18, 2020 |
Dividends [Abstract] | |||
Dividend declare date | Mar. 24, 2020 | Feb. 18, 2020 | |
Dividend declared (in dollars per share) | $ 0.14 | $ 0.07 | |
Dividends | $ 10.3 | ||
Dividend payment date | Jun. 5, 2020 | Mar. 16, 2020 | |
Share authorized to be repurchased (in shares) | 4.5 |