- Nordic American Tankers went from seeing record earnings during 2020 to fighting for their survival during 2021.
- Sadly this is now coming down to the wire and they may not last another quarter given their dangerous liquidity that is threatening their solvency.
- They once again saw negative operating cash flow during the second quarter of 2021 despite also seeing help from a working capital draw.
- They are now almost out of available cash due to a debt covenant with only $4.3m remaining, which is less than they burnt during the second quarter alone.
- Whilst this sounds bearish, due to the high volatility in their industry that could see their share price make sizable moves in either direction, I still only believe that a neutral rating is appropriate.
For further details see:
Nordic American Tankers: Survival Coming Down To The Wire, May Not Last Another Quarter