Hamilton, Bermuda, May 15, 2015
We are all too familiar with the tragedy that is unfolding in the Mediterranean Sea, as refugees try to cross over to Europe in unseaworthy and unsafe boats. As part of the shipping industry's long tradition of aiding those in danger on the sea, commercial cargo vessels have played a role in rescue operations.
Last autumn, on September 27, 2014, a Suezmax tanker owned by Nordic American Tankers Limited (NYSE:NAT), of which I am Chairman and Chief Executive Officer, saved 150 refugees on the Mediterranean Sea. NAT's role in this rescue received wide publicity at the time.
Nordic American Offshore Ltd. (NYSE:NAO), which I also head, owns and operates platform supply vessels, or PSVs. NAO's ten PSVs, built in top Norwegian shipyards, are specially designed to perform rescue operations for crews in the harsh North Sea waters, and are suitable for rescue operations in other areas, including the Mediterranean.
On April 20, 2015, the Norwegian government announced a plan to charter a patrol and rescue vessel that would not be ready for rescue operations in the Mediterranean until about August 1. Believing that August was far too late to help the refugees in their dramatic plight, NAO immediately announced that we could have one or more suitable vessels in place in the Mediterranean as early as ten days after the award of a possible contract. Yesterday, on a Norwegian public holiday, the Norwegian Prime Minister announced that the Government has chartered one PSV from another source, which can be ready in the Mediterranean about June 15. This vessel is five to six years older than NAO's vessels. The charter period for that vessel is reported to be a minimum of six months.
We are pleased that NAO's offer of speedy availability for service helped promote the importance of this project, an offer that we made via several media appearances, including on Norwegian television. We believe our willingness to be ready much sooner than the Government had planned, influenced the advancement of the Government's timetable from the original August 1 date, and we must congratulate the Government on its proper humanitarian response. We stand ready to help in any way we can in case more PSV's are required.
Herbjorn Hansson
Executive Chairman
Nordic American Offshore Ltd.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the PSV market, as a result of changes in the general market conditions of the oil and natural gas industry which influence charter hire rates and vessel values, demand in platform supply vessels, our operating expenses, including bunker prices, dry docking and insurance costs, governmental rules and regulations or actions taken by regulatory authorities as well as potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, the availability of financing and refinancing, vessel breakdowns and instances of off-hire and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.
Contacts
Herbjørn Hansson, Executive Chairman
Nordic American Offshore Ltd.
Tel: +1 866 805 9504 or + 47 901 46 291
Tor-Øyvind Bjørkli, Chief Executive Officer
Nordic American Offshore Ltd.
Tel: +47 21 99 24 81 or +47 90 62 70 14
Gary J. Wolfe
Seward & Kissel LLP
Tel: +1 212 574 1223
