Markets have improved in the fourth quarter, the leader of Bermuda-based Nordic American Tankers Ltd has told shareholders and investors in the oil tanker company.

Herbjorn Hansson said that tanker markets have been down in 2021, including in the third quarter, but improved conditions for the company’s Suezmax vessels over the last two weeks have seen NAT conclude several contracts.

The founder, chairman and CEO of NAT added: “We are concluding contracts almost daily for individual vessels in our 25-ship fleet.

“The shortest duration last week is for an inter-European voyage for about 20 days and the longest is a term contract with an oil company that starts in November 2021 for one year ($20,000 per day) plus options for two more years at significantly higher rates.

“The spot contracts are about $20,000 per day for each ship, reflecting the recent rise in daily rates. The operating cash break-even for our vessels are $8,000 per day per ship.

“Most of our ships trade in the spot market. A term contract of one year or more is an ‘insurance policy’ from a risk-management standpoint, producing positive cashflow.

“Our strategy of trading in the spot market, while also locking some ships into profitable long-term contracts, allows us peak flexibility.”

Mr Hansson added that NAT expects to receive between $4 million and $6 million in cash after the Oslo-based mutual War Risk Association obtained approval from regulators in Norway to return $300 million of its capital of $1 billion to its members.

He said that the money is expected to be received before the end of the year, or early in the first quarter of 2022.

Mr Hansson said that NAT has installed ballast water treatment systems on several of its ships and will be installing such systems on all its ships in accordance with regulations of the International Maritime Organisation in London.

He added: “NAT is taking the necessary steps to ensure our vessels are fully compliant with national and international regulations, enabling the NAT vessels to operate all over the world.

“Our strategy has always been to run NAT with two objectives in mind: to be the best tanker company for both our shareholders and our clients.

“As the world emerges from the pandemic, both parties will profit from our proven expertise and attention to market conditions.”

The company’s third-quarter results will be released on November 30 before the opening of the New York Stock Exchange, on which NAT’s shares are listed.