MPSYF - Nordic American Tankers: 'F' Earnings Rating

• NAT is bullish on spot tanker rates because of Russia's involvement in armed conflict with Ukraine, and most of its tankers are in the spot market.
• However, Suezmax tanker rates have dropped since their spike.
• Oil demand fundamentals have softened and high oil prices are dampening demand growth expectations.
• Therefore, being heavily dependent on spot rates for future revenues is a risky proposition.
• NAT should be diversifying the timing and term structure of its charters, but it prefers to gamble, endangering future earnings.

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