Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract} | |
Entity Registrant Name | NORDIC AMERICAN TANKERS Ltd |
Entity Central Index Key | 0001000177 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Voyage Revenues | $ 254,733 | $ 154,444 |
Voyage Expenses | (74,782) | (70,163) |
Vessel Operating Expenses | (32,698) | (31,916) |
General and Administrative Expenses | (8,620) | (7,453) |
Depreciation Expense | (33,352) | (31,527) |
Net Operating Income | 105,281 | 13,385 |
Interest Income | 150 | 147 |
Interest Expense | (16,792) | (20,394) |
Other Financial Expense | 77 | (2,479) |
Total Other Expenses | (16,565) | (22,726) |
Net Income (Loss) Before Income Taxes | 88,716 | (9,341) |
Income Tax Expense | 0 | 0 |
Net Income (Loss) | $ 88,716 | $ (9,341) |
Basic Income (Loss) per Share (in dollars per share) | $ 0.60 | $ (0.07) |
Diluted Income (Loss) per share (in dollars per share) | $ 0.60 | $ (0.07) |
Basic Weighted Average Number of Common Shares Outstanding (in shares) | 147,872,500 | 141,969,666 |
Diluted Weighted Average Number of Common Shares Outstanding (in shares) | 148,861,500 | 141,969,666 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | ||
Net Income (Loss) | $ 88,716 | $ (9,341) |
Other Comprehensive Income (Loss) | ||
Translation Differences | (152) | 49 |
Unrealized (Loss) Gain on Defined Benefit plan | (132) | 0 |
Total Other Comprehensive Income (Loss) | (284) | 49 |
Total Comprehensive Income (Loss) | $ 88,432 | $ (9,292) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and Cash Equivalents | $ 112,806 | $ 48,847 |
Restricted Cash | 18,376 | 12,791 |
Accounts Receivable, Net | 23,101 | 24,583 |
Prepaid Expenses | 5,790 | 3,383 |
Inventory | 10,112 | 22,475 |
Voyages in Progress | 9,357 | 13,124 |
Investment Securities | 148 | 825 |
Other Current Assets | 2,731 | 3,344 |
Total Current Assets | 182,421 | 129,372 |
NON-CURRENT ASSETS | ||
Vessels, net | 872,507 | 899,997 |
Right of Use Assets | 1,218 | 1,412 |
Other Non-Current Assets | 1,514 | 122 |
Total Non-Current Assets | 875,239 | 901,531 |
Total Assets | 1,057,660 | 1,030,903 |
Current Liabilities | ||
Accounts Payable | 1,566 | 8,405 |
Accrued Voyage Expenses | 3,085 | 11,524 |
Other Current Liabilities | 14,384 | 15,562 |
Dividends Payable | 29,931 | 0 |
Current Portion of Long-Term Debt | 52,357 | 23,537 |
Total Current Liabilities | 101,323 | 59,028 |
Long-Term Debt | 317,753 | 375,364 |
Operating Lease Liabilities | 815 | 934 |
Other Non-Current Liabilities | 314 | 153 |
Total Non-Current Liabilities | 318,882 | 376,451 |
Commitments and Contingencies | ||
SHAREHOLDERS' EQUITY | ||
Common Stock, par value $0.01 per Share; 360,000,000 shares authorized, 149,689,717 and 147,230,634 shares issued and outstanding at June 30, 2020, and December 31, 2019, respectively | 1,497 | 1,472 |
Additional Paid-in Capital | 53,383 | 38,499 |
Contributed Surplus | 567,202 | 567,202 |
Accumulated other comprehensive loss | (1,680) | (1,397) |
Retained Earnings (Accumulated Deficit) | 17,053 | (10,352) |
Total Shareholders' Equity | 637,455 | 595,424 |
Total Liabilities and Shareholders' Equity | $ 1,057,660 | $ 1,030,903 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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) | 149,689,717 | 147,230,634 |
Common Stock, shares outstanding (in shares) | 149,689,717 | 147,230,634 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 88,716 | $ (9,341) |
Reconciliation of Net Income to Net Cash Provided by Operating Activities | ||
Depreciation Expense | 33,352 | 31,527 |
Change in Fair Value of Investment Securities | 258 | 1,449 |
Dry-dock Expenditures | (4,371) | (446) |
Amortization of Deferred Finance Costs | 2,058 | 2,866 |
Share-based Compensation | 145 | 200 |
Other, net | (1,291) | 552 |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivables | 1,482 | 6,940 |
Accounts Receivables, Related Party | 0 | 212 |
Inventory | 12,363 | (1,797) |
Prepaid Expenses and Other Current Assets | (1,793) | (147) |
Accounts Payable and Accrued Liabilities | (16,435) | 1,204 |
Voyages in Progress | 3,767 | 7,613 |
Net Cash Provided by Operating Activities | 118,251 | 40,832 |
Cash Flows from Investing Activities | ||
Investment in Vessels | (1,574) | (557) |
Proceeds from Sale of Investment Securities | 419 | 0 |
Net Cash Used In Investing Activities | (1,155) | (557) |
Cash Flows from Financing Activities | ||
Proceeds from Issuance of Common Stock | 14,758 | 0 |
Proceeds from Borrowing Activities | 0 | 300,000 |
Repayments of Borrowing Facility | (27,099) | (6,378) |
Repayments of Vessel Financing 2018-built Vessels | (3,751) | (3,566) |
Repayments of Credit Facility | 0 | (313,400) |
Transactions Costs Borrowing Facility | 0 | (6,904) |
Dividends Distributed | (31,255) | (9,936) |
Net Cash Used In Financing Activities | (47,347) | (40,184) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 69,749 | 91 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (205) | (19) |
Cash, Cash Equivalents and restricted Cash at the Beginning of Period | 61,638 | 49,327 |
Cash, Cash Equivalents and Restricted Cash at the End of Period | 131,182 | 49,399 |
Supplemental Disclosure of Cash Flow information | ||
Cash and Cash Equivalents | 112,806 | 42,062 |
Restricted cash | 18,376 | 7,337 |
Total Cash, Cash equivalents and Restricted Cash Shown in the Statement of Cash Flows | 131,182 | 49,399 |
Cash Paid for Interest, Net of Amounts Capitalized | $ (14,737) | $ (17,444) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Contributed Surplus [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Loss [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings/(Accumulated Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Contributed Surplus [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Accumulated Other Comprehensive Loss [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained Earnings/(Accumulated Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
Balance (in shares) at Dec. 31, 2018 | 141,969,666 | |||||||||||||||||
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)/Income | $ 0 | 0 | 0 | 0 | (9,341) | (9,341) | ||||||||||||
Share based compensation (in shares) | 0 | |||||||||||||||||
Share based compensation | $ 0 | 200 | 0 | 0 | 0 | 200 | ||||||||||||
Other comprehensive income | 0 | 0 | 0 | 49 | 0 | 49 | ||||||||||||
Dividends Paid and Declared | $ 0 | 0 | (9,936) | 0 | 0 | (9,936) | ||||||||||||
Balance (in shares) at Jun. 30, 2019 | 141,969,666 | |||||||||||||||||
Balance at Jun. 30, 2019 | $ 1,420 | 124,052 | 776,945 | (1,270) | (318,144) | 583,003 | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 147,230,634 | 147,230,634 | ||||||||||||||||
Balance at Dec. 31, 2019 | $ 1,472 | 38,498 | 567,202 | (1,396) | (10,352) | 595,424 | $ 0 | $ 0 | $ 0 | $ 0 | $ (125) | $ (125) | $ 1,472 | $ 38,498 | $ 567,202 | $ (1,396) | $ (10,477) | $ 595,299 |
Increase (decrease) in Shareholders' Equity [Roll Forward] | ||||||||||||||||||
Net (Loss)/Income | $ 0 | 0 | 0 | 0 | 88,716 | 88,716 | ||||||||||||
Common Shares Issued, net (in shares) | 2,459,083 | |||||||||||||||||
Common Shares Issued, net | $ 25 | 14,733 | 0 | 0 | 0 | 14,758 | ||||||||||||
Share based compensation (in shares) | 0 | |||||||||||||||||
Share based compensation | $ 0 | 152 | 0 | 0 | 0 | 152 | ||||||||||||
Other comprehensive income | 0 | 0 | 0 | (284) | 0 | (284) | ||||||||||||
Dividends Paid and Declared | $ 0 | 0 | 0 | 0 | (61,186) | (61,186) | ||||||||||||
Balance (in shares) at Jun. 30, 2020 | 149,689,717 | |||||||||||||||||
Balance at Jun. 30, 2020 | $ 1,497 | $ 53,383 | $ 567,202 | $ (1,680) | $ 17,053 | $ 637,455 |
INTERIM FINANCIAL DATA
INTERIM FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2020 | |
INTERIM FINANCIAL DATA [Abstract] | |
INTERIM FINANCIAL DATA | 1. INTERIM FINANCIAL DATA The unaudited interim condensed consolidated financial statements for Nordic American Tankers Limited, together with its subsidiaries, (the “Company”) have been prepared on the same basis as the Company’s annual financial statements, except in respect of the new accounting standard noted below, and, in the opinion of management, include all material adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and results of operations in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the annual financial statements and notes included in the Annual Report on Form 20-F for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission on April 16, 2020. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES A summary of the Company’s significant accounting policies is identified in note 2 of the Company’s annual financial statements for the year ended December 31, 2019 included in the Company’s Annual Report on Form 20-F, with the exception of certain changes noted below. Accounting standards implemented in 2020 Effective from January 1, 2020 we adopted the new accounting standard ASC 326 Financial Instruments – Credit Losses using the modified retrospective transition method. 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 probability 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 implementation of the standard has not materially impacted our condensed consolidated financial statements on adoption. No other new accounting policies have been adopted since December 31, 2019. |
VOYAGE REVENUES
VOYAGE REVENUES | 6 Months Ended |
Jun. 30, 2020 | |
VOYAGE REVENUES [Abstract] | |
VOYAGE REVENUES | 3. VOYAGE REVENUES Our voyage revenues consist of time charter revenues and spot charter revenues with the following split for the six-month periods ended June 30, 2020 and June 30, 2019: All amounts in USD ‘000 2020 2019 Spot charter revenues 206,242 138,869 Time charter revenues 48,491 15,575 Total Voyage Revenues 254,733 154,444 The future minimum revenues as at June 30, 2020 related to time charter revenues are as follows: All amounts in USD ‘000 Amount 2020 30,301 2021 7,317 2022 - Future minimum revenues 37,618 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 June 30, 2020 and December 31, 2019, the Company has capitalized fulfilment cost of $0.4 million and $1.0 million, respectively. |
LONG-TERM DEBT AND CURRENT PORT
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT | 6 Months Ended |
Jun. 30, 2020 | |
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT [Abstract] | |
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT | 4. LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT 2019 Senior Secured Credit Facility On February 12, 2019, the Company entered into a five-year senior secured credit facility for $306.1 million (the “2019 Senior Secured Credit Facility”). 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 As of December 31, 2019, the Company had $291.8 million drawn under the 2019 Senior Secured Credit Facility, where $18.7 million has been presented as Current Portion of Long-Term Debt. This included $3.4 million related to the excess cash flow mechanism payment for earnings generated in the fourth quarter of 2019 and payable in the first quarter of 2020. The Company has repaid a total of $27.1 million of the facility in the six months ended June 30, 2020, and the outstanding balance of the facility was $264.7 million as of June 30, 2020. The Company has presented $47.2 million under Current Portion of Long-Term Debt, including $31.9 million related to the excess cash flow mechanism payment for earnings generated in the second quarter of 2020 and payable in the third quarter of 2020. Subsequent to June 30, 2020, we have repaid in total $34.5 million, including the above mentioned instalment of $31.9 million and the outstanding balance as of the date of this report is $230.2 million. Financing of 2018-built Vessels The three 2018-built vessels 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-built vessels. 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 The outstanding amount under this financing arrangement was $116.1 million and $119.9 million as of June 30, 2020 and December 31, 2019, respectively, where $7.8 and $7.6 million has been presented as Current Portion of Long-Term Debt, respectively. As of June 30, 2020, the Company has the following scheduled principal repayments required to be made under the Company's debt facilities as follows: Debt repayments in $'000s Total 2020* 2021 2022 2023 2024 Thereafter 2019 Senior Secured Credit Facility 264,699 39,588 15,305 15,305 15,305 179,196 - Financing of 2018-built Vessels 116,116 3,879 7,960 8,327 8,711 9,138 78,101 Total 380,815 43,467 23,265 23,632 24,016 188,334 78,101 * Q3 and Q4 2020 repayments The table above does not take into account future excess cash flow repayments related to the 2019 Senior Secured Credit Facility. The Company has repaid $27.1 million on the facility in the six months ended June 30, 2020 and classified an amount of $31.9 million payable in the third quarter of 2020 under Current Portion of Long Term Debt. This mechanism could further accelerate repayment of the facility in future quarters, subject to the tanker market generating future earnings that triggers excess cash repayments. Liquidity Outlook Cash and cash equivalents was $112.8 million and $48.8 million as of June 30, 2020, and December 31, 2019, respectively. Restricted cash was $18.4 million and $12.8 million as of June 30, 2020 and December 31, 2019, respectively. The restricted cash deposit is nominated and available for use for drydocking and other capex commitments related to the vessels used as collateral under the 2019 Senior Secured Credit Facility. 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 our common shares through an At-the-Market Offering (“ATM”) program having an aggregate offering price of up to $40,000,000. In the six months ended June 30, 2020, we have raised $15.3 million and $14.8 million of gross and net proceeds, respectively, and issued 2,459,083 common shares. As of June 30, 2020, the Company has raised cumulative gross and net proceeds (after deducting sales commissions and other fees and expenses) under the ATM of $33.8 million and $32.8 million, respectively, by issuing and selling 7,720,053 common shares. As of the date of this report, no further sales have been completed under the ATM program. The Company monitors compliance with financial covenants on a regular basis and as at June 30, 2020, the Company was in compliance with the financial covenants in the debt facilities. The Company believes that the current cash, cash equivalents and restricted cash and cash expected to be generated from operations, together with the ATM program, are sufficient to meet the working capital needs and other liquidity requirements for the next 12 months from the date of this report. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES The Company owned 811,538 and 286,200 shares in Hermitage Offshore Services Ltd. as of December 31, 2019 and June 30, 2020, respectively. The carrying value of the investment as of December 31, 2019 was $0.8 million and $0.1 million as of June 30, 2020, based on the market share price. The Company has disposed of shares for a consideration of $0.4 million in the period ended June 30, 2020, and recognized a loss of $0.3 million in earnings from changes in fair market value. The 286,200 shares owned as of June 30, 2020, have been sold subsequent to the balance sheet date. |
VESSELS
VESSELS | 6 Months Ended |
Jun. 30, 2020 | |
VESSELS [Abstract] | |
VESSELS | 6. VESSELS Vessels, net, consist of the carrying value of 23 vessels as of June 30, 2020, and December 31, 2019. Vessels, Net, includes capitalized unamortized drydocking costs. The vessels held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not reflect its recoverable amount. In determining whether the assets are recoverable, the Company compares the estimate of the undiscounted cash flows expected to be generated by the assets to its carrying value. All figures in USD ‘000 January 1 – June 30, 2020 January 1 - December 31, 2019 Vessels and Drydocking 1,375,407 1,369,567 Less Accumulated Depreciation (502,900 ) (469,570 ) Vessels, net 872,507 899,997 The Company has completed periodical maintenance survey for one vessel in the period ended June 30, 2020, and four vessels were in drydock for periodical maintenance as at June 30, 2020. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2020 | |
OTHER CURRENT LIABILITIES [Abstract] | |
OTHER CURRENT LIABILITIES | 7. OTHER CURRENT LIABILITIES All amounts in USD ‘000 June 30, 2020 December 31, 2019 Accrued Expenses 7,683 9,578 Deferred Revenues 6,701 2,154 Settlement Deferred Compensation Liabilities - 3,830 Total 14,384 15,562 Deferred revenues relate to prepaid charter hire from customers. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
EARNINGS (LOSS) PER SHARE [Abstract] | |
EARNINGS (LOSS) PER SHARE | 8. 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. Six months ended June 30, All figures in USD ‘000 except share and per share amounts 2020 2019 Numerator Net Income (Loss) 88,716 (9,341 ) Denominator Basic – Weighted Average Common Shares Outstanding 147,872,500 141,969,666 Dilutive – Weighted Average Common Shares Outstanding 148,861,500 141,969,666 Earnings per Common Share Basic 0.60 (0.07 ) Diluted 0.60 (0.07 ) Total outstanding number of shares as of June 30, 2020 is 149,689,717. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. 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 six months ended June 30, 2020, or the fiscal year 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2020 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 10. SUBSEQUENT EVENTS On August 20, 2020, the Company repaid an amount of $31.9 million on the 2019 Senior Secured Credit Facility related to excess cash generated from operations in 2Q 2020. On September 4, 2020, the Company paid out the dividend declared on May 20, 2020 of $0.20 cent per share in respect of the results for the second quarter of 2020. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Accounting Standards Implemented | Accounting standards implemented in 2020 Effective from January 1, 2020 we adopted the new accounting standard ASC 326 Financial Instruments – Credit Losses using the modified retrospective transition method. 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 probability 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 implementation of the standard has not materially impacted our condensed consolidated financial statements on adoption. No other new accounting policies have been adopted since December 31, 2019. |
VOYAGE REVENUES (Tables)
VOYAGE REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
VOYAGE REVENUES [Abstract] | |
Voyage Revenues | Our voyage revenues consist of time charter revenues and spot charter revenues with the following split for the six-month periods ended June 30, 2020 and June 30, 2019: All amounts in USD ‘000 2020 2019 Spot charter revenues 206,242 138,869 Time charter revenues 48,491 15,575 Total Voyage Revenues 254,733 154,444 |
Future Minimum Revenues | The future minimum revenues as at June 30, 2020 related to time charter revenues are as follows: All amounts in USD ‘000 Amount 2020 30,301 2021 7,317 2022 - Future minimum revenues 37,618 |
LONG-TERM DEBT AND CURRENT PO_2
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT [Abstract] | |
Aggregate Annual Principal Payments of Debt | As of June 30, 2020, the Company has the following scheduled principal repayments required to be made under the Company's debt facilities as follows: Debt repayments in $'000s Total 2020* 2021 2022 2023 2024 Thereafter 2019 Senior Secured Credit Facility 264,699 39,588 15,305 15,305 15,305 179,196 - Financing of 2018-built Vessels 116,116 3,879 7,960 8,327 8,711 9,138 78,101 Total 380,815 43,467 23,265 23,632 24,016 188,334 78,101 * Q3 and Q4 2020 repayments |
VESSELS (Tables)
VESSELS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
VESSELS [Abstract] | |
Vessels | The vessels held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not reflect its recoverable amount. In determining whether the assets are recoverable, the Company compares the estimate of the undiscounted cash flows expected to be generated by the assets to its carrying value. All figures in USD ‘000 January 1 – June 30, 2020 January 1 - December 31, 2019 Vessels and Drydocking 1,375,407 1,369,567 Less Accumulated Depreciation (502,900 ) (469,570 ) Vessels, net 872,507 899,997 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
OTHER CURRENT LIABILITIES [Abstract] | |
Other Current Liabilities | All amounts in USD ‘000 June 30, 2020 December 31, 2019 Accrued Expenses 7,683 9,578 Deferred Revenues 6,701 2,154 Settlement Deferred Compensation Liabilities - 3,830 Total 14,384 15,562 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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. Six months ended June 30, All figures in USD ‘000 except share and per share amounts 2020 2019 Numerator Net Income (Loss) 88,716 (9,341 ) Denominator Basic – Weighted Average Common Shares Outstanding 147,872,500 141,969,666 Dilutive – Weighted Average Common Shares Outstanding 148,861,500 141,969,666 Earnings per Common Share Basic 0.60 (0.07 ) Diluted 0.60 (0.07 ) |
VOYAGE REVENUES (Details)
VOYAGE REVENUES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disaggregation of Revenue [Abstract] | |||
Total Voyage Revenues | $ 254,733 | $ 154,444 | |
Future Minimum Revenues [Abstract] | |||
Capitalized cost | $ 400 | $ 1,000 | |
Maximum [Member] | |||
Future Minimum Revenues [Abstract] | |||
Term of voyage contracts | 1 year | ||
Spot Charter [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total Voyage Revenues | $ 206,242 | 138,869 | |
Time Charter [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Total Voyage Revenues | 48,491 | $ 15,575 | |
Future Minimum Revenues [Abstract] | |||
2020 | 30,301 | ||
2021 | 7,317 | ||
2022 | 0 | ||
Future minimum revenues | $ 37,618 |
LONG-TERM DEBT AND CURRENT PO_3
LONG-TERM DEBT AND CURRENT PORTION OF LONG TERM DEBT (Details) | Aug. 20, 2020USD ($) | Mar. 29, 2019USD ($) | Feb. 12, 2019USD ($) | Dec. 01, 2017USD ($)Vessel | Sep. 10, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | |
Line of Credit Facility [Abstract] | |||||||||
Current portion of long-term debt | $ 23,537,000 | $ 52,357,000 | |||||||
Amount payable | 8,405,000 | 1,566,000 | |||||||
Cash and cash equivalents | 48,847,000 | 112,806,000 | $ 42,062,000 | ||||||
Restricted cash | 12,791,000 | 18,376,000 | |||||||
Contractual Obligation [Abstract] | |||||||||
2020 | [1] | 43,467,000 | |||||||
2021 | 23,265,000 | ||||||||
2022 | 23,632,000 | ||||||||
2023 | 24,016,000 | ||||||||
2024 | 188,334,000 | ||||||||
Thereafter | 78,101,000 | ||||||||
Total | 380,815,000 | ||||||||
Liquidity Outlook [Abstract] | |||||||||
Gross amount of at-the-market offering of common stock | 15,300,000 | ||||||||
Net amount at-the-market offering of common stock | $ 14,800,000 | ||||||||
Common shares issued (in shares) | shares | 2,459,083 | ||||||||
Gross amount after deducting sales commissions and other fees and expenses | $ 33,800,000 | ||||||||
Net amount after deducting sales commissions and other fees and expenses | $ 32,800,000 | ||||||||
Common shares issued and sold (in shares) | shares | 7,720,053 | ||||||||
Maximum [Member] | |||||||||
Liquidity Outlook [Abstract] | |||||||||
At-the-market offering of common stock | $ 40,000,000 | ||||||||
Senior Secured Credit Facility [Member] | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Debt instrument term | 5 years | ||||||||
Maximum borrowing capacity | $ 306,100,000 | ||||||||
Loan amortizing, maturity period | 20 years | ||||||||
Maturity date | Feb. 28, 2024 | ||||||||
Discretionary excess cash mechanism for the lender that equals to net earnings from collateral vessels | 50.00% | ||||||||
Deferred financing costs | $ 13,000,000 | ||||||||
Deferred finance costs, non-cash portion | 6,100,000 | ||||||||
Debt covenants, minimum liquidity | $ 30,000,000 | ||||||||
Debt covenants percentage in loan-to-vessel ratio | 70.00% | ||||||||
Drawn amount | 291,800,000 | $ 264,700,000 | |||||||
Current portion of long-term debt | 18,700,000 | 47,200,000 | |||||||
Amount of excess cash flow payment related to earnings | 3,400,000 | 31,900,000 | |||||||
Repayment of debt | 27,100,000 | ||||||||
Cash and cash equivalents | 48,800,000 | 112,800,000 | |||||||
Restricted cash | 12,800,000 | 18,400,000 | |||||||
Contractual Obligation [Abstract] | |||||||||
2020 | [1] | 39,588,000 | |||||||
2021 | 15,305,000 | ||||||||
2022 | 15,305,000 | ||||||||
2023 | 15,305,000 | ||||||||
2024 | 179,196,000 | ||||||||
Thereafter | 0 | ||||||||
Total | 264,699,000 | ||||||||
Senior Secured Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Drawn amount | $ 230,200,000 | ||||||||
Repayment of debt | $ 31,900,000 | 34,500,000 | |||||||
Amount payable | $ 31,900,000 | ||||||||
Financing of 2018-built Vessels [Member] | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Number of vessels delivered | Vessel | 3 | ||||||||
Deferred financing costs | $ 2,300,000 | ||||||||
Drawn amount | 119,900,000 | $ 116,100,000 | |||||||
Percentage of purchase price expected to pay by lending provider | 77.50% | ||||||||
Term of bareboat charter agreement | 10 years | ||||||||
Obligation to purchase the vessels | $ 13,600,000 | ||||||||
First flexibility period to purchase the vessels | 60 months | ||||||||
Second flexibility period to purchase the vessels | 84 months | ||||||||
Minimum value adjusted equity | $ 175,000,000 | ||||||||
Minimum value adjusted equity ratio | 25.00% | ||||||||
Minimum liquidity value | $ 20,000,000 | ||||||||
Long term debt current | $ 7,600,000 | $ 7,800,000 | |||||||
Contractual Obligation [Abstract] | |||||||||
2020 | [1] | 3,879,000 | |||||||
2021 | 7,960,000 | ||||||||
2022 | 8,327,000 | ||||||||
2023 | 8,711,000 | ||||||||
2024 | 9,138,000 | ||||||||
Thereafter | 78,101,000 | ||||||||
Total | $ 116,116,000 | ||||||||
Financing of 2018-built Vessels [Member] | Minimum [Member] | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Interest rate | 6.50% | ||||||||
Financing of 2018-built Vessels [Member] | Maximum [Member] | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Interest rate | 6.72% | ||||||||
[1] | Q3 and Q4 2020 repayments |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Equity Method Investment [Abstract] | ||
Carrying value of investment | $ 0.1 | $ 0.8 |
Consideration for shares disposed | 0.4 | |
Recognized gain (loss) from changes in fair market value | $ (0.3) | |
Hermitage Offshore Services Limited [Member] | ||
Equity Method Investment [Abstract] | ||
Number of shares held (in shares) | 286,200 | 811,538 |
VESSELS (Details)
VESSELS (Details) $ in Thousands | Jun. 30, 2020USD ($)Vessel | Dec. 31, 2019USD ($)Vessel |
VESSELS [Abstract] | ||
Number of vessels | Vessel | 23 | 23 |
Vessels and Drydocking | $ | $ 1,375,407 | $ 1,369,567 |
Less Accumulated Depreciation | $ | (502,900) | (469,570) |
Vessels, net | $ | $ 872,507 | $ 899,997 |
Number of vessels the Company has taken through periodical maintenance survey | Vessel | 1 | |
Number of vessels in drydock for periodical maintenance | Vessel | 4 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
OTHER CURRENT LIABILITIES [Abstract] | ||
Accrued Expenses | $ 7,683 | $ 9,578 |
Deferred Revenues | 6,701 | 2,154 |
Settlement Deferred Compensation Liabilities | 0 | 3,830 |
Total | $ 14,384 | $ 15,562 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Sep. 20, 2019 | |
Numerator [Abstract] | ||||
Net Income (Loss) | $ 88,716 | $ (9,341) | ||
Denominator [Abstract] | ||||
Basic - Weighted Average Common Shares Outstanding (in shares) | 147,872,500 | 141,969,666 | ||
Dilutive - Weighted Average Common Shares Outstanding (in shares) | 148,861,500 | 141,969,666 | ||
Earnings per Common Share [Abstract] | ||||
Basic (in dollars per share) | $ 0.60 | $ (0.07) | ||
Diluted (in dollars per share) | $ 0.60 | $ (0.07) | ||
Common stock, shares outstanding (in shares) | 149,689,717 | 147,230,634 | 149,689,717 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Claim | Jun. 30, 2020 | Dec. 31, 2019 |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
Number of claims filed | 0 | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 04, 2020 | Aug. 20, 2020 | Sep. 10, 2020 | Jun. 30, 2020 |
Subsequent Event [Member] | ||||
Dividends [Abstract] | ||||
Dividend declared (in dollars per share) | $ 0.20 | |||
Dividend declare date | May 20, 2020 | |||
Dividend paid date | Sep. 4, 2020 | |||
Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Repayment of debt | $ 27.1 | |||
Senior Secured Credit Facility [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Repayment of debt | $ 31.9 | $ 34.5 |