Nordic American Tanker Stock Up 80% Year To Date
Chaotic times in the Middle East has been a boon for the energy market, and midstream companies like Nordic American Tanker Limited (NYSE:NAT).
Gas prices have soared since the U.S. launched its war on Iran on February 28. While there have been slivers of optimism that an end to the war could be negotiated, nothing has yet come to fruition.
If anything, ongoing uncertainty, including the closure of the Strait of Hormuz, which accounts for 20% of seaborne oil trade, has seen crude oil and fuel prices ramp up higher over the last number of weeks. (Source: “Why the Strait of Hormuz matters so much in the Iran war,” BBC, April 7, 2026.)
There are slivers of optimism. Vice-President JD Vance is leading another round of talks to end the war with Iran in Pakistan. That optimism may be premature, Tehran has said a second round of talks were “not true.” (Source: “US intercepts and seizes Iranian-flagged cargo ship, Trump says,” BBC, April 19, 2026.)
President Donald Trump also threatened to knock out “every single Power Plant, and every single Bridge in Iran,” if the Middle Eastern country doesn’t agree to a U.S. deal. (Source: “Trump warns ‘NO MORE MR. NICE GUY’ but says talks with Iran ongoing,” USA Today,” April 19, 2026.)
To that end, on April 19, the U.S. seized an Iranian cargo ship in the Gulf of Oman. Iran promised to retaliate for the “Act of armed piracy.” Time will tell. Even when the war in Iran comes to an end, it will take a while for energy prices to come down and for energy markets to think the Straight of Hormuz is a reliable trade route.
The U.S. may want the Straight of Hormuz to open but a senior Iranian politician has said Tehran will never give up control of the Strait. Not only that, Tehran is introducing a bill in parliament which includes the environment, maritime safety and national security; all of which will be upheld by the country’s armed forces. (Source: “Tehran will never cede control of Strait of Hormuz, senior Iranian politician tells BBC,” BBC, April 19, 2026.)
About Nordic American Tanker Limited
Suffice it to say, the area will continue to remain volatile. That’s bad news for world peace and energy markets, but again, could help companies like Nordic American Tanker generate serious long-term revenue.
Bermuda-based Nordic American Tankers acquires and charters double-hull tankers. It currently operates a fleet of 17 Suezmax crude oil tankers, with a cargo lifting capacity of 1 million barrels of oil each. The majority of its vessels are in the spot market. It has two vessels slated for delivery in 2028. (Source: “Overview,” Nordic American Tankers Ltd, last accessed April 20, 2026.)
The company noted on April 13, that geopolitical uncertainty normally increases demand for its services. And right now, the market is exceptionally strong. It just fixed a one-year time charter with a customer for approximately $75,000 per day. Its operating costs are less than $10,00 per day. (Source: “Chaotic conditions create more transportation work for NAT,” Nordic American Tanker Limited, April 13, 2026.)
The company’s main customers are the largest energy companies in the world, including Exxon, Shell, British Petroleum, Total and Equinor. These companies lease its ships on a regular basis and account for more than 50% of Nordic’s business.
In the present, very strong market, management adjusted its fleet by selling some of its older vessels, built in 2003, 2004 and 2005 at good prices. The recent transactions improve its financial flexibility.
Another Strong Quarter
Nordic’s fourth quarter results were the best quarter of the year with an average time charter equivalent (TCE) for its fleet of $35,000 per day, up 25% from the previous quarter. (Source: “Report as per December 31, 2025 – Full speed,” Nordic American Tanker Limited, February 26, 2026.)
It’s operating costs were just $9,000 per day/ship. It reported fourth quarter net profit of $11.7 million compared with a third quarter net loss of $2.8 million. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) advanced 62% on a monthly basis to $34.7 million. It ended the quarter with more than $100 million in cash.
During the first half of 2025 the company acquired two 2016-built Suezmax tankers. During the second half of the year it entered into an agreement with a South-Korean shipyard to build two vessels for delivery in 2028.
All this is, of course, good news for the short- and long-term outlook for its fleet. Management anticipates that the tanker markets will continue to be strong in the coming years.
Nordic American Announces 114th Consecutive Dividend
Dividends are an important part of who Nordic American Tanker is. In its financial results, it says that “whatever we do, dividends remain an important objective. And they are.
Its policy is to declare quarterly dividends to shareholders, based on its net operating cash flow during the previous quarter. This results in a variable quarterly dividend.
In the fourth quarter, it raised its dividend payout to $0.17 from $0.13 per share in the third quarter. This works out to an annual distribution of $0.47 per share, for a forward dividend yield of approximately eight percent.
NAT Stock Crushing Broader Market
What’s better than a reliably growing, ultra high yield dividend? One that’s tied to a stock that is doing exceptionally well. And NAT stock has been doing well since the start of April 2025. Since then, NAT stock has rallied an impressive 174%.
NAT stock actually hit a new 52-week high of $6.34 on April 7, it’s highest trading level in 10 years. It continues to trade near that level, and is currently up:
- 13.7% over the last month
- 52% over the last three months
- 80% year to date
- 169% over the last 12 months
Chart courtesy of StockCharts.com
The Lowdown on Nordic American Tanker Ltd
Nordic American Tanker Ltd continues to be a great oil & gas midstream company that owns one of the largest fleets of Suezmax tankers in the world, with long-term contracts with major oil companies.
It has been expanding its fleet and is, it claims, in a strong position and one of the most active periods in years. It reported strong fourth quarter results and expects the tanker markets to remain strong in the coming years.
This should result in Nordic American continuing to pay income investors one of the best dividend policies in the midstream sector.