Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | NORDIC AMERICAN TANKERS Ltd |
Entity Central Index Key | 1,000,177 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 101,969,666 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Voyage Revenues | $ 357,451 | $ 445,738 | $ 351,049 |
Voyage Expenses | (125,987) | (158,656) | (199,430) |
Vessel Operating Expenses | (80,266) | (66,589) | (62,500) |
General and Administrative Expenses | (12,296) | (9,790) | (14,863) |
Depreciation Expense | (90,889) | (82,610) | (80,531) |
Received Settlement | 5,328 | 0 | 0 |
Fees for Provided Services | 0 | 0 | 1,500 |
Net Operating Income (Loss) | 53,341 | 128,093 | (4,775) |
Interest Income | 215 | 114 | 181 |
Interest Expenses | (11,170) | (10,855) | (12,244) |
Gain on Shares | 0 | 0 | 3,286 |
Other Financial Expenses | (98) | (167) | (1,126) |
Total Other Expenses | (11,053) | (10,908) | (9,903) |
Net Income (Loss) Before Income Taxes and Equity Income (Loss) | 42,288 | 117,185 | (14,678) |
Income Tax Expense | (102) | (96) | (47) |
Equity (Loss) Income | (46,642) | (2,462) | 1,559 |
Net (Loss) Income | $ (4,456) | $ 114,627 | $ (13,166) |
Basic and Diluted Earnings (Loss) per Share (in dollars per share) | $ (0.05) | $ 1.29 | $ (0.15) |
Basic and Diluted Average Number of Common Shares Outstanding (in shares) | 92,531,001 | 89,182,001 | 85,401,179 |
Cash Dividends per Share (in dollars per share) | $ 1.37 | $ 1.38 | $ 0.61 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net (Loss) Income | $ (4,456) | $ 114,627 | $ (13,166) |
Other Comprehensive Loss Current Period | |||
Translation Differences | 29 | (326) | (425) |
Unrealized (Loss) Gain on Defined benefit plan | (94) | 192 | (253) |
Other Comprehensive Loss | (65) | (134) | (678) |
Total Comprehensive (Loss) Income | $ (4,521) | $ 114,493 | $ (13,844) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Assets | |||
Cash and Cash Equivalents | $ 82,170 | $ 29,889 | |
Accounts Receivable, Net | 17,487 | 28,001 | |
Accounts Receivable, Related Party | 583 | 596 | |
Prepaid Expenses | 4,480 | 4,372 | |
Inventory | 20,886 | 14,843 | |
Voyages in Progress | 35,610 | 37,353 | |
Other Current Assets | 2,493 | 3,125 | |
Total Current Assets | 163,709 | 118,179 | |
Non-Current Assets | |||
Vessels, Net | 1,058,049 | 962,685 | |
Deposits paid for Vessels | 82,130 | 64,000 | |
Goodwill | 18,979 | 18,979 | |
Investment in Nordic American Offshore Ltd | 16,550 | 64,877 | |
Other Non-current Assets | 10,487 | 10,474 | |
Total Non-current Assets | 1,186,195 | 1,121,015 | |
Total Assets | 1,349,904 | 1,239,194 | |
Current Liabilities | |||
Accounts Payable | 4,294 | 4,247 | |
Accrued Voyage Expenses | 9,583 | 7,035 | |
Accrued Liabilities | 7,648 | 9,577 | |
Total Current Liabilities | 21,525 | 20,859 | |
Long-Term Debt | [1] | 442,820 | 324,568 |
Deferred Compensation Liability | 14,510 | 13,046 | |
Total Non-Current Liabilities | 457,330 | 337,614 | |
Commitment and Contingencies | |||
Shareholders' Equity | |||
Common Stock, Par Value $0.01 per Share 180,000,000 authorized 101,969,666 issued and outstanding at December 31, 2016 and 89,182,001 issued and outstanding at December 31, 2015. | 1,020 | 892 | |
Additional Paid-in Capital | 235,050 | 114,679 | |
Contributed Surplus | 640,472 | 766,122 | |
Accumulated Other Comprehensive Loss | (1,037) | (972) | |
Accumulated Deficit | (4,456) | 0 | |
Total Shareholders' Equity | 871,049 | 880,721 | |
Total Liabilities and Shareholders' Equity | $ 1,349,904 | $ 1,239,194 | |
[1] | Long-Term Debt consists of outstanding amounts on the Credit Facility less unamortized deferred financing cost. Outstanding amounts on the Credit Facility were $447,000 and $330,000 as of December 31, 2016 and 2015, respectively. Please see note 2 to these Consolidated Financial Statements describing the effects of the accounting principle change covering the deferred financing cost. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Liabilities and Shareholders' Equity | |||
Long-Term Debt | [1] | $ 442,820 | $ 324,568 |
Shareholders' Equity | |||
Common Share, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Stock, shares authorized (in shares) | 180,000,000 | 180,000,000 | |
Common Stock, shares issued (in shares) | 101,969,666 | 89,182,001 | |
Common Stock, shares outstanding (in shares) | 101,969,666 | 89,182,001 | |
Credit Facility [Member] | |||
Liabilities and Shareholders' Equity | |||
Long-Term Debt | $ 447,000 | $ 330,000 | |
[1] | Long-Term Debt consists of outstanding amounts on the Credit Facility less unamortized deferred financing cost. Outstanding amounts on the Credit Facility were $447,000 and $330,000 as of December 31, 2016 and 2015, respectively. Please see note 2 to these Consolidated Financial Statements describing the effects of the accounting principle change covering the deferred financing cost. |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Treasury Shares [Member] | Additional Paid-in Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings (Accumulated Deficit) [Member] | Total |
Balance (in shares) at Dec. 31, 2013 | 75,359,001 | 23,000 | |||||
Balance at Dec. 31, 2013 | $ 754 | $ 208,240 | $ 751,567 | $ (160) | $ (105,417) | $ 854,984 | |
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Accumulated coverage of loss | 0 | 0 | (105,417) | 0 | 105,417 | 0 | |
Net (Loss) Income | $ 0 | 0 | 0 | 0 | (13,166) | (13,166) | |
Common Shares Repurchased, Equity Incentive Plan (in shares) | (10,000) | 10,000 | |||||
Common Shares Repurchased, Equity Incentive Plan | $ 0 | (99) | 0 | 0 | 0 | (99) | |
Common Shares Distributed - Equity Incentive Plan (in shares) | 33,000 | (33,000) | |||||
Common Shares Distributed - Equity Incentive Plan | $ 0 | 0 | 0 | 0 | 0 | 0 | |
Common Shares Issued, net of issuance costs (in shares) | 13,800,000 | 0 | |||||
Common Shares Issued, net of issuance costs | $ 138 | 113,295 | 0 | 0 | 0 | 113,433 | |
Reduction of share premium | 0 | (208,240) | 208,240 | 0 | 0 | 0 | |
Other comprehensive Loss | $ 0 | 0 | 0 | (678) | 0 | (678) | |
Share based compensation (in shares) | 0 | 0 | |||||
Share based compensation | $ 0 | 1,096 | 0 | 0 | 0 | 1,096 | |
Dividends Paid | (66,658) | (66,658) | |||||
Balance (in shares) at Dec. 31, 2014 | 89,182,001 | 0 | |||||
Balance at Dec. 31, 2014 | $ 892 | 114,291 | 787,732 | (838) | (13,166) | 888,911 | |
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Accumulated coverage of loss | 0 | 0 | (13,166) | 0 | 13,166 | 0 | |
Net (Loss) Income | 0 | 0 | 0 | 0 | 114,627 | 114,627 | |
Other comprehensive Loss | $ 0 | 0 | 0 | (134) | 0 | (134) | |
Share based compensation (in shares) | 0 | 0 | |||||
Share based compensation | $ 0 | 388 | 0 | 0 | 0 | 388 | |
Dividends Paid | $ 0 | 0 | (8,444) | 0 | (114,627) | (123,071) | |
Balance (in shares) at Dec. 31, 2015 | 89,182,001 | 0 | |||||
Balance at Dec. 31, 2015 | $ 892 | 114,679 | 766,122 | (972) | 0 | 880,721 | |
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net (Loss) Income | $ 0 | 0 | 0 | 0 | (4,456) | (4,456) | |
Common Shares Distributed - Equity Incentive Plan (in shares) | 137,665 | 0 | |||||
Common Shares Distributed - Equity Incentive Plan | $ 1 | 0 | 0 | 0 | 0 | 1 | |
Common Shares Issued, net of issuance costs (in shares) | 12,650,000 | 0 | |||||
Common Shares Issued, net of issuance costs | $ 127 | 119,942 | 0 | 0 | 0 | 120,069 | |
Other comprehensive Loss | $ 0 | 0 | 0 | (65) | 0 | (65) | |
Share based compensation (in shares) | 0 | 0 | |||||
Share based compensation | $ 0 | 429 | 0 | 0 | 0 | 429 | |
Forfeited shares - 2011 Equity Incentive Plan (in shares) | 13,500 | ||||||
Dividends Paid | $ 0 | 0 | (125,650) | 0 | 0 | (125,650) | |
Balance (in shares) at Dec. 31, 2016 | 101,969,666 | 13,500 | |||||
Balance at Dec. 31, 2016 | $ 1,020 | $ 235,050 | $ 640,472 | $ (1,037) | $ (4,456) | $ 871,049 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Common Shares Issued, issuance costs | $ 0.4 | |
Adjusted [Member] | ||
Common Shares Issued, issuance costs | $ 0.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net (Loss) Income | $ (4,456) | $ 114,627 | $ (13,166) |
Reconciliation of Net Loss to Net Cash Provided by Operating Activates | |||
Depreciation Expense | 90,889 | 82,610 | 80,531 |
Equity Loss (Income) | 46,642 | 2,462 | (1,497) |
Return on Investment | 0 | 0 | 1,929 |
Drydock Expenditure | (15,382) | (11,450) | (5,346) |
Amortization of Deferred Finance Costs | 1,382 | 1,240 | 1,228 |
Deferred Compensation Liability | 1,369 | 324 | 782 |
Share-based Compensation | 430 | 388 | 997 |
Gain on Equity Method Investment | 0 | 0 | (3,285) |
Adjustment of warrants to fair value | 0 | 0 | 915 |
Other, net | 33 | (61) | (37) |
Changes in Operating Assets and Liabilities | |||
Accounts Receivables | 10,084 | (11,832) | 3,539 |
Accounts Receivables, Related Party | 12 | 77 | 0 |
Inventory | (6,043) | 7,380 | 2,438 |
Prepaid Expenses and Other Current Assets | 415 | 262 | 300 |
Accounts Payable and Accrued Liabilities | 668 | (3,869) | 2,784 |
Voyages in Progress | 1,743 | (7,767) | (14,633) |
Net Cash Provided by Operating Activities | 127,786 | 174,391 | 57,479 |
Cash Flows from Investing Activities | |||
Investment in Vessels | (138,277) | (123,373) | (73,772) |
Investment in Other Fixed Assets | (87) | (103) | (281) |
Sale of Other Fixed Assets | 0 | 334 | 0 |
Deposits to and Repayment from Seller | (50,130) | (64,000) | 0 |
Investments in Nordic American Offshore Ltd | 0 | (9,508) | (11,403) |
Long-term Deposits | 0 | (5,000) | 0 |
Return of Investments | 1,685 | 4,227 | 3,772 |
Other, net | 0 | 0 | 0 |
Net Cash Used in Investing Activities | (186,809) | (197,423) | (81,685) |
Cash Flows from Financing Activities | |||
Proceeds from Issuance of Common Stock | 120,068 | 0 | 113,433 |
Proceeds from Use of Credit Facility | 117,000 | 80,000 | 0 |
Repayments on Credit Facility | 0 | 0 | 0 |
Credit Facility Costs | (130) | (4,640) | 0 |
Dividends Distributed | (125,650) | (123,071) | (54,069) |
Net Cash Provided (Used In) by Financing Activities | 111,288 | (47,711) | 59,364 |
Net Increase (Decrease) in Cash and Cash Equivalents | 52,266 | (70,743) | 35,158 |
Cash and Cash Equivalents at Beginning of Period | 29,889 | 100,736 | 65,675 |
Effect of Exchange Rate changes on Cash and Cash Equivalents | 15 | (104) | (97) |
Cash and Cash Equivalents at End of Period | 82,170 | 29,889 | 100,736 |
Cash Paid for Interest, Net of Amounts Capitalized | 9,840 | 9,374 | 9,700 |
Cash Paid for Taxes | 96 | 47 | 86 |
Fair value of shares distributed as dividend in kind | $ 0 | $ 0 | $ 12,589 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
NATURE OF BUSINESS [Abstract] | |
NATURE OF BUSINESS | 1. NATURE OF BUSINESS Nordic American Tankers Limited (“NAT”) was formed on June 12, 1995 under the laws of the Islands of Bermuda. The Company’s shares trade under the symbol “NAT” on the New York Stock Exchange. The Company was formed for the purpose of acquiring and chartering double-hull tankers. The Company is an international tanker company that currently owns 33 Suezmax tankers, including three newbuildings expected to be delivered in 2018 and one newbuilding delivered in 2017, an increase from the three vessels owned in the autumn of 2004. The Company expects that the expansion process will continue over time and that more vessels will be added to its fleet. The 29 vessels the Company operated per December 31, 2016, average approximately 156,000 dwt each. In 2016, 2015 and 2014, the Company chartered its operating vessels primarily in the spot market. In January 2013 NAT acquired Scandic American Shipping Ltd. (“Scandic”) and NAT Chartering Ltd (formerly Orion Tankers Ltd) (“NATC”). Accordingly, these financial statements are presented on a consolidated basis for NAT and its subsidiaries (“the Company”). For the year ended December 31, 2016, and December 31, 2015, Scandic had the daily administrative and operational responsibility and NATC has provided services as the commercial manager. The Group provided assistance in the formation of Nordic American Offshore in 2013 and the initial public offering in 2014, and Scandic has provided administrative services in 2016, 2015 and 2014. For further details on the acquisition of the subsidiaries and the investment in NAO please see Note 4 and Note 5, respectively. Tanker markets are typically stronger in the fall and winter months (the fourth and first quarters of the calendar year) in anticipation of increased oil consumption in the northern hemisphere during the winter months. Seasonal variations in tanker demand normally result in seasonal fluctuations in spot market charter rates. The Company’s Fleet Including four newbuildings, the Company’s current fleet consists of 33 Suezmax crude oil tankers of which 31 were built, or are under construction, in Korea. The Company has entered into preliminary contracts for the construction of three Suezmax vessels expected to be delivered in the second half of 2018. Vessel Built Deadweight Tons Delivered to NAT Nordic Harrier 1997 151,459 1997 Nordic Hawk 1997 151,475 1997 Nordic Hunter 1997 151,401 1997 Nordic Voyager 1997 149,591 2004 Nordic Fighter 1998 153,328 2005 Nordic Freedom 2005 159,331 2005 Nordic Discovery 1998 153,328 2005 Nordic Saturn 1998 157,331 2005 Nordic Jupiter 1998 157,411 2006 Nordic Moon 2002 160,305 2006 Nordic Apollo 2003 159,998 2006 Nordic Cosmos 2003 159,999 2006 Nordic Sprite 1999 147,188 2009 Nordic Grace 2002 149,921 2009 Nordic Mistral 2002 164,236 2009 Nordic Passat 2002 164,274 2010 Nordic Vega 2010 163,940 2010 Nordic Breeze 2011 158,597 2011 Nordic Aurora 1999 147,262 2011 Nordic Zenith 2011 158,645 2011 Nordic Sprinter 2005 159,089 2014 Nordic Skier 2005 159,089 2014 Nordic Light 2010 158,475 2015 Nordic Cross 2010 158,475 2015 Nordic Luna 2004 150,037 2016 Nordic Castor 2004 150,249 2016 Nordic Sirius 2000 150,183 2016 Nordic Pollux 2003 150,103 2016 Nordic Star 2016 159,000 2016 Nordic Space(1) 2017 159,000 2017 Newbuilding(1) 2018 157,000 2018(2) Newbuilding(1) 2018 157,000 2018(2) Newbuilding(1) 2018 157,000 2018(2) (1) Vessel under construction per December 31, 2016. (2) Expected delivery during the second half of 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting: Effective January 1, 2016, the Company adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs, which required debt issuance costs to a recognized debt liability to be presented in the Consolidated Balance Sheets as a direct deduction from the debt liability rather than an asset. This has also been applied retrospectively to the comparative consolidated balance sheet as of December 31, 2015. The effect of the application on the consolidated balance sheet as of December 31, 2015, is a reduction of Long-Term Debt from $330.0 million to $324.6 million and a reduction in Other Non-Current Assets from $15.9 million to $10.5 million. Principles of Consolidation: The equity method of accounting is used for investments in companies which NAT does not control, but over which NAT has the ability to exercise significant influence. The Company holds an ownership interest of 29.1% in Nordic American Offshore Ltd. (“NAO”). Use of Estimates: Foreign Currency Translation: . Revenue and Expense Recognition: Voyage revenues and expenses are recognized ratably over the estimated length of each voyage and, therefore, are allocated between reporting periods based on the relative transit time in each period. The impact of recognizing voyage expenses ratably over the length of each voyage is not materially different on a quarterly and annual basis from a method of recognizing such costs as incurred. Probable losses on voyages are provided for in full at the time such losses can be estimated. Based on the terms of the customer agreement, a voyage is deemed to commence upon the completion of discharge of the vessel’s previous cargo and is deemed to end upon the completion of discharge of the current cargo. However, the Company does not recognize revenue if a charter has not been contractually committed to by a customer and the Company, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. Spot Charters: Time Charters: Vessel Operating Expenses : Cash and Cash Equivalents: Accounts Receivable, Net: Inventories: Vessels, Net: Impairment of Vessels: The Company reviews for impairment long-lived assets held and used whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In this respect, the Company reviews its assets for impairment on a vessel by vessel basis. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company evaluates the asset for impairment loss. The impairment loss is determined by the difference between the carrying amount of the asset and fair value (calculated based on estimated discounted operating cashflow). In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the vessels’ future performance, with the significant assumptions being related to charter rates, fleet utilization, operating expenses, capital expenditures, residual value and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations. The estimated net operating cash flows are determined by considering an estimated daily time charter equivalent for the remaining operating days. The Company estimates the daily time charter equivalent for the remaining operating days based on the most recent fifteen year historical average for similar vessels and utilizing available market data for spot market rates over the remaining estimated life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, net of brokerage commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking expenditures). The salvage value used in the impairment test is estimated to be $9.0 million per vessel. If the Company’s estimate of undiscounted future cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair value if the fair value is lower than the vessel’s carrying value. Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate, such assumptions are subjective. There can be no assurance as to how long charter rates and vessel values will remain at their currently low levels or whether they will improve by any significant degree. There was no impairment on vessels for the years ended December 31, 2016, 2015 and 2014. Drydocking: Investments in Equity Method Investees: Business combinations: The purchase price is equivalent to the fair value of the consideration transferred and liabilities incurred. Tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition are recorded at the acquisition date fair value. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and liabilities assumed. Goodwill: Deferred Compensation Liability: Defined Benefit Plan: Other Comprehensive (Loss) Income: Segment Information: Geographical Segment: Fair Value of Financial Instruments: Deferred Financing Costs: Stock-Based Payments: Restricted Shares to Employees: Income Taxes: Two of the Company’s wholly-owned subsidiaries are located in Norway and are subject to income tax in that jurisdiction at 25%, 27%, and 27% for the years ended December 31, 2016, 2015 and 2014, respectively, of their taxable profit. The income tax expensed for year ended December 31, 2016, 2015 and 2014 was $102,000, $96,000 and $47,000, respectively. Deferred tax assets related to these entities is not material. The Company does not have any unrecognized tax benefits, material accrued interests or penalties related to income taxes. Concentration of Credit Risk: For the year ended December 31, 2016, one customer accounted for 32% of the total revenues. For the year ended December 31, 2015, two customers accounted for 42% of the total revenues, with 30% and 12%. For the year ended December 31, 2014, two customers accounted for 40% of the total revenues, with 29% and 11%. Accounts receivable, net, as of December 31, 2016, and 2015 were $18.1 million and $28.6 million, respectively. As of December 31, 2016, three charterers accounted for 44% of the outstanding accounts receivable, with 16%, 16%, and 12%. As of December 31, 2015, two charterers accounted for 43% of the outstanding accounts receivable, with 20% and 21%. Recent Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842 ). The update requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. It also offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. We intend to adopt the new revenue and lease standards on January 1, 2018 and January 1, 2019, respectively. We are currently assessing the potential impacts of these new standards, if any, on our consolidated statements and related disclosures. In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of cash flows (Topic 230): Classification of certain cash receipts and cash payments In January 2017, the FASB issued ASU 2017-01, Business Combinations - Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other (Topic 350) , which simplifies the test for goodwill impairment. This Update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. |
VESSELS, NET
VESSELS, NET | 12 Months Ended |
Dec. 31, 2016 | |
VESSELS, NET [Abstract] | |
VESSELS, NET | 3. VESSELS, NET Vessels, net, consist of the carrying value of 29 vessels and 24 vessels for the year ended December 31, 2016 and December 31, 2015, respectively. Vessels, net include drydocking costs. All Figures in USD ‘000 2016 2015 Vessels 1,700,040 1,530,245 Drydocking 99,153 82,695 Total 1,799,193 1,612,940 Less Accumulated Depreciation (741,144 ) (650,255 ) Vessels, net 1,058,049 962,685 Impairment Loss on Vessels The Company has not recorded impairment loss on vessels for the years ended December 31, 2016, 2015 and 2014, respectively. The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of each of its vessels may not be recoverable. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | 4. INVESTMENTS Nordic American Offshore Ltd. Nordic American Offshore Ltd. (“NAO”) was incorporated on October 17, 2013, and operates Platform Supply Vessels (“PSV”). On November 18, 2013, NAO concluded a private placement of $250 million, wherein the Company participated with an investment of $65 million, or 4,333,566 shares. The investment NAO was accounted for using the equity method of accounting. In June 2014 NAO completed an initial public offering on the New York Stock Exchange wherein the Company acquired 375,000 shares for $5.6 million. In 2014 NAT distributed 699,802 NAO shares as dividend-in-kind to its shareholders. The shares were measured at fair value at the time of the distribution, and a gain of $2.1 million was recognized in the Statement of Operations. In December 2014 the Company acquired an additional 488,216 shares in the open market bringing its ownership to 19.2% per December 31, 2014. In May 2015 NAO announced a share repurchase program under which NAO may repurchase up to 2.5 million of its outstanding shares. Per December 31, 2016 and 2015 NAO had repurchased 1,172,774 and 870,839 shares under the plan and had 20,686,847 and 22,560,531 shares outstanding, respectively. In February 2016 NAO purchased 1,571,749 of its own common shares in a private transaction. Based on the significance of the Company’s ownership interest following that share repurchase program, the Company determined it has the ability to exercise significant influence over NAO and therefore, changed its method of accounting for the investment in NAO from an available-for-sale security to an equity method investment. The change in accounting method was retrospectively applied to the consolidated financial statements as of and for the year ended December 31, 2014. In November 2015 the Company purchased 1,521,300 shares in a private transaction after which the Company owned 26.5% in NAO. NAT's ownership in NAO as of December 31, 2016 and 2015 was 29.1% and 26.7%, respectively. As at December 31, 2016 the Company evaluated its investment in NAO for impairment, after considering factors including, but not limited to, the fair value of NAO based on the quoted share price as compared to its carrying value, the length of time the investment’s fair value had been below carrying value and the limited near-term prospects for a recovery in the share price of NAO. We concluded that as of December 31, 2016, the investment in NAO was other-than-temporarily impaired. As of December 31, 2016, before impairment the carrying value per share based on share of underlying net assets was $8.95 with the stock trading at $2.75. As a result , The fair value of NAT’s investment in NAO, based on the share price was $31.7 million as of December 31, 2015. Summarized balance sheet information for NAO is as follows: All figures in USD ‘000 December 31, 2016 December 31, 2015 Current assets 7,909 14,565 Noncurrent assets 366,945 321,635 Total Assets 374,854 336,200 Current liabilities 4,089 7,735 Noncurrent liabilities 136,568 47,608 Total Shareholders’ Equity 234,196 280,857 Total liabilities and equity 374,854 336,200 NAT’s share of NAO’s equity was $68.1 million and $75.0 million as of December 31, 2016 and 2015, respectively. Summarized Statement of Operations information for NAO is as follows: Years ended December 31, All figures in USD ‘000 2016 2015 2014 Operating Revenues 17,697 36,372 52,789 Net Operating (Loss) Income (28,543 ) (8,372 ) 11,262 Net (Loss) Income (32,151 ) (10,844 ) 6,931 NAT’s portion of NAO’s Net (Loss) Income in the Statements of Operations per December 31, 2016 and 2015 was ($9.3) million and ($2.5) million respectively. On March 28, 2017, NAO announced the completion of a public offering of 41,300,000 common shares, including the exercise of the underwriters’ option of 1,300,000 shares, at a public offering price of $1.25 per share. In the offering NAT acquired 8,000,000 shares at $1.25 per share. As a result of the transaction NAT will recognize approximately $2.6 million in a dilution loss in the first quarter of 2017. Following that offering, NAT now owns 22.6 % of the common shares outstanding in NAO. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | 5. ACQUISITIONS Scandic American Shipping Ltd On January 10, 2013 the Company acquired Scandic, which was previously owned by a company controlled by the Chairman and Chief Executive Officer of the Company, Mr. Herbjørn Hansson and his family. The purchase price was $33.3 million, of which $18.1 million was paid in shares, $8.0 million was paid in cash and $7.2 million was payable to the seller for additional assets which were sold during the first quarter of 2013. The number of shares issued was 1,910,112, trading at $9.50 on the acquisition date. The Company performed an analysis of the fair value of the tangible assets acquired and liabilities assumed, resulting in recognition of $19.0 million of goodwill. A settlement loss of $5.0 million relates to a preexisting contractual relationship between the Company and Scandic, which was recognized as a loss on contract in the consolidated Statements of Operations for the year ended December 31, 2013. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 6. RELATED PARTY TRANSACTIONS Nordic American Offshore Ltd.: As compensation for its services and coordinating NAO's private equity placement in 2013, NAT received 833,333 warrants with an exercise price of $15.00 per common share. The warrants expired, unexercised, on December 31, 2015. On June 12, 2014, NAO was listed on the New York Stock Exchange. As compensation for coordinating this transaction, NAT received a success fee of $1.5 million, which is included in Fees for Provided Services for the year ended December 31, 2014. In December 2013, Scandic entered into a management agreement with NAO for the provision of administrative services as requested by NAO management. For services under the management agreement, Scandic received a management fee of $100,000 for 2016, $200,000 for 2015 and $150,000 for 2014, and is reimbursed for cost incurred in connection with its services. Scandic also receives reimbursement for a portion of the operational costs such as salary and office rent, among others, incurred by Scandic, which is attributable to NAO. For the year ended December 31, 2016, 2015 and 2014, the Company recognized an aggregate of $2.2 million, $2.1 million and $2.2 million, respectively, for such costs incurred which was included in General and Administrative Expenses. Board Member and Employees: Mr. Jan Erik Langangen, Board Member and advisor of the Company, is a partner of Langangen & Helset Advokatfirma AS, a firm which provides legal services to the Company. The Company recognized $0.3 million, $0.1 million and $0.1 million in costs in each of the years ended December 31, 2016, 2015 and 2014, respectively, for the services provided by Langangen & Helset Advokatfirma AS. These costs are included in General and Administrative Expenses within the Statements of Operations. There was $0 million included within Accounts Payable at December 31, 2016 and 2015, respectively. In 2014 NAT entered into an agreement with an immediate family member of the Chairman, for the use of an asset owned by him for corporate and marketing activities. NAT pays a fixed annual fee for this agreement and fees associated with the actual use. The cost of this arrangement for the year ended December 31, 2016, 2015 and 2014 was $0.1 million, which are included in General and Administrative Expenses. No amounts were due to the related party as of December 31, 2016 and 2015. |
DEFERRED COMPENSATION LIABILITY
DEFERRED COMPENSATION LIABILITY | 12 Months Ended |
Dec. 31, 2016 | |
DEFERRED COMPENSATION LIABILITY [Abstract] | |
DEFERRED COMPENSATION LIABILITY | 7. DEFERRED COMPENSATION LIABILITY In 2010, the Board of Directors approved an unfunded deferred compensation agreement for Turid M. Sørensen, the Company’s Chief Financial Officer and Executive Vice President. The agreement provides for unfunded deferred compensation computed as a percentage of salary, and certain benefits for dependents. The deferred compensation liability for the Chief Financial Officer and Executive Vice President is denominated in Norwegian currency. Benefits vest over a period of employment of 20.5 years up to a maximum of 66% of the salary level at the time of retirement, age of 67. Interest is imputed at 2.60% and 2.70% as of December 31, 2016 and 2015, respectively. The rights under the agreement commenced in May 2008. As the agreement was effective in 2010, vested rights under the agreement were recognized in 2010. In May 2007, the Board of Directors approved an unfunded deferred compensation agreement for Herbjørn Hansson, the Chairman, President and CEO. The agreement provides for unfunded deferred compensation computed as a percentage of salary, and certain benefits for dependents. Benefits vest over a period of employment of 14 years up to a maximum of 66% of the salary level at the time of retirement, age of 70. Interest is imputed at 2.60% and 2.70% as of December 31, 2016 and 2015, respectively. The rights under the agreement commenced in October 2004. The CEO has the right to require a bank guarantee for the deferred compensation liability, and the Company has a deposit as described in Note 8. The CEO has served in his position since the inception of the Company in 1995. The total expense related to the deferred compensation agreements for the Chairman, President and CEO and for the Company’s Chief Financial Officer and Executive Vice President, recognized in 2016, 2015 and 2014 were $1.8 million, $0.4 million and $0.4 million, respectively. As of December 31, 2016 and 2015 total deferred compensation liability was $14.5 million and $13.0 million, respectively. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
OTHER NON-CURRENT ASSETS | 8. OTHER NON-CURRENT ASSETS All figures in USD ‘000 2016 2015 Fixture, Furniture and Equipment 338 474 Long term deposit (Restricted Cash) 10,149 10,000 Total as of December 31, 10,487 10,474 The Long-Term Deposit relates to the Company transferring cash to a restricted account in accordance with the deferred compensation agreement for Herbjørn Hansson, the Chairman, President and CEO, described in Note 7. |
SHARE-BASED COMPENSATION PLAN
SHARE-BASED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION PLAN [Abstract] | |
SHARE-BASED COMPENSATION PLAN | 9. SHARE-BASED COMPENSATION PLAN Equity Incentive Plan 2011 In 2011, the Board of Directors decided to establish an incentive plan involving a maximum of 400,000 restricted shares of which all shares were allocated among the management of the Company and the members of the Board of Directors. On February 23, 2011, at a grant date fair value of $23.88 per share, 326,000 restricted shares were granted with a four-year cliff-vesting period. On August 5, 2011, at a grant date fair value of $18.05 per share, 74,000 restricted shares were granted with a five-year cliff-vesting period. The shares are forfeited if the grantee leaves the Company before that time. The holders of the restricted shares are entitled to receive dividends paid in the period as well as voting rights. In 2013 the Board of Directors amended the vesting requirements for 174,000 shares allocated under the 2011 Equity Incentive Plan and the vesting requirements were lifted. The lifting of the vesting requirements was in relation to the acquisition of Scandic American Shipping Ltd. This resulted in $1.1 million being charged to General and Administrative expense in the first quarter of 2013. In 2014 the Company repurchased 10,000 restricted common shares outstanding. In 2015, the Company repurchased from employees who have resigned a total of 33,000 restricted common shares and granted these amongst new employees with a four-year cliff vesting period and various grant date fair values. In 2016, the Company received 13,500 shares from employees who have resigned. The shares are held as treasury shares at December 31, 2016. The compensation expense is recognized on a straight-line basis over the vesting period and is recorded as part of General and Administrative expenses. The total compensation expense related to restricted shares under the plan was $0.4 million, $0.4 million, and $1.1 million for the years ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively. As of December 31, 2016, unrecognized cost related to unvested shares aggregated to $1.5 million, which will be recognized over a weighted period of 2.7 years. The tables below summarize the Company’s restricted stock awards as of December 31, 2016: Restricted shares - Employees Weighted- average grant-date fair value - Employees Non-vested at January 1, 2016 33,000 $ 9.84 Granted during the year 137,665 14.65 Vested during the year - - Forfeited during the year (13,500 ) (13.40 ) Non-vested at December 31, 2016 157,165 13.75 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2016 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | 10. LONG-TERM DEBT Credit Facility: On October 26, 2012, the Company entered into a $430 million revolving credit facility with a syndicate of lenders in order to refinance its existing credit facility, fund future vessel acquisitions and for general corporate purposes (the “Credit Facility”). Amounts borrowed under the Credit Facility bear interest at an annual rate equal to LIBOR plus a margin and the Company pays a commitment fee, which is a percentage of the applicable margin, on any undrawn amounts. The Credit Facility original maturity date was October 2017. In December 2015 the Company expanded the Credit Facility from $430 million to $500 million. The new maturity of the credit facility is December 2020. There are no repayment requirements before maturity on the Credit Facility. The expanded facility was effective January 2016. Borrowings under the Credit Facility are secured by first priority mortgages over the Company’s vessels and assignments of earnings and insurance. Under the Credit Facility, the Company is subject to certain covenants requiring among other things, the maintenance of (i) a minimum amount of equity; (ii) a minimum equity ratio; (iii) a minimum level of liquidity, (iv) positive working capital; and (v) a required security ratio of vessel values, according to broker reports, to drawn on the facility. The Credit Facility also includes customary events of default including non-payment, breach of covenants, insolvency, cross default and material adverse change. The Company is permitted to pay dividends in accordance with its dividend policy as long as it is not in default under the Credit Facility. In connection with the expansion of the Credit Facility, the Company incurred $4.6 million in deferred financing costs in 2015. At the end of 2016 and 2015 the Company had $447 million and $330 million drawn under its Credit Facility, respectively. As of December 31, 2016, the Company was in default with one of its debt covenants; (v) required security ratio of vessel value clause. A waiver was obtained lowering the required ratio to a level where the Company is in compliance. This waiver is effective until May 31, 2018. Under the terms of the waiver obtained, we are unable to draw further on the Credit Facility, our margin is increased by 2.0% for the period of the waiver and we cannot distribute dividends exceeding 85% of our “Adjusted Net Operating Earnings” with respect to the first quarter of 2017, and 75% of Adjusted Net Operating Earnings as from the second quarter 2017 until we are in compliance with the terms of the original Credit Facility. The Adjusted Net Operating Earnings figure is income from vessel operations before depreciation, any impairment losses, non-cash administrative charges and net financing costs. The Company was in compliance with its loan covenants as of December 31, 2015. The estimated fair value for the long-term debt is considered to be approximately equal to the carrying value since it bears a variable interest rate. |
INTEREST EXPENSE
INTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2016 | |
INTEREST EXPENSE [Abstract] | |
INTEREST EXPENSE | 11. INTEREST EXPENSE Interest expenses consist of interest expense on the long-term debt, the commitment fee and amortization of deferred financing costs related to the Credit Facility described in Note 10. All amounts in USD ‘000 2016 2015 2014 Interest Expenses, net of capitalized interest 8,811 7,590 8,686 Commitment Fee 937 2,025 2,330 Amortization of Deferred Financing Costs 1,382 1,240 1,228 Other financial costs 40 - - Total Interest Expenses 11,170 10,855 12,244 For the years ended December 31, 2016, 2015 and 2014, $1.6 million, $1.0 million and $0.0 million of interest expenses were capitalized, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | 12. ACCRUED LIABILITIES All figures in USD ‘000 2016 2015 Accrued Interest 1,437 1,639 Accrued Expenses 6,211 7,938 Total as of December 31, 7,648 9,577 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS (LOSS) PER SHARE [Abstract] | |
EARNINGS (LOSS) PER SHARE | 13. EARNINGS (LOSS) PER SHARE Basic earnings per share (“EPS”) are computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. All figures in USD except number of shares and earnings (loss) per common share 2016 2015 2014 Numerator Net (Loss) Income (4,456 ) 114,627 (13,166 ) Denominator: Basic - Weighted Average Common Shares Outstanding 92,531,001 89,182,001 85,401,179 Dilutive – Weighted Average Common Shares Outstanding 92,531,001 89,182,001 85,401,179 Earnings (Loss) per Common Share: Basic (0.05 ) 1.29 (0.15 ) Diluted (0.05 ) 1.29 (0.15 ) |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 14. SHAREHOLDERS’ EQUITY Authorized, issued and outstanding common shares roll-forward is as follows: Authorized Shares Issued and Out- standing Shares Common Stock Balance as of January 1, 2013 90,000,000 52,915,639 529 Common Shares Issued in Follow-on Offering 20,556,250 206 Shares issued in connection with the Scandic acquisition 1,910,112 19 Balance as of December 31, 2013 90,000,000 75,382,001 754 Common Shares Issued in Follow-on Offering 13,800,000 138 Increase in Authorized Shares 90,000,000 Balance as of December 31, 2014 180,000,000 89,182,001 892 Balance as of December 31, 2015 180,000,000 89,182,001 892 Equity incentive plan issuance 137,665 1 Common Shares Issued in Follow-on Offering 12,650,000 127 Balance as of December 31, 2016 180,000,000 101,969,666 1,020 As part of the acquisition of Scandic the Company issued 1,910,112 shares. For further background and details related to the acquisition please see Note 4 and 5. In April and November 2013, the Company completed an underwritten public offering of 11,212,500 and 9,343,750 common shares which strengthened the equity by $102.2 million and $70.9 million, respectively. In April 2014, the Company completed an underwritten public offering of 13,800,000 common shares which increased its equity by $113.4 million. On June 17, 2014, at its Annual General Meeting (“AGM”) held in Bermuda, the Company increased authorized share capital from 90,000,000 common shares to 180,000,000. In September 2016, the Company completed an underwritten public offering of 12,650,000 common shares which increased its equity by $120.1 million. Additional Paid in Capital Included in Additional Paid in Capital is the Company’s Share Premium Fund as defined by Bermuda law. The Share Premium Fund cannot be distributed without complying with certain legal procedures designed to protect the creditors of the Company, including public notice to its creditors and a subsequent period for creditor notice of concern, regarding the Company’s intention, following shareholder approval, to transfer such funds to the Company’s Contributed Surplus Account and thereby make such funds available for distribution. The Share Premium Fund was $77.4 million and $77.4 million as of December 31, 2016 and 2015 respectively. Credits and Charges to Additional Paid in Capital were a result of the accounting for the Company’s share based compensation programs and issuance of shares in relation to the acquisition of Scandic. On June 17, 2014, at the Company’s Annual General Meeting, shareholders voted to reduce the Share Premium Fund by the amount of $208.2 million. The legal procedures related to this reduction were finalized in July 2014 upon which the amount became eligible for distribution. Contributed Surplus Account The Company’s Contributed Surplus Account as defined by Bermuda law, consists of amounts previously recorded as share premium, transferred to Contributed Surplus Account when resolutions are adopted by the Company’s shareholders to make Share Premium Fund distributable or available for other purposes. As indicated by the laws governing the Company, the Contributed Surplus Account can be used for dividend distribution and to cover accumulated losses from its operations. For the years ended December 31, 2016 and 2015, the Company had a net loss of $4.5 million and net income of $114.6 million, and paid a dividend of $125.7 million and $123.0 million, respectively. Accordingly, the Company’s Contributed Surplus Account was charged with a total of $92.8 million and $8.4 million for the years ended December 31, 2016 and 2015, respectively. For the year ended December 31, 2014 the Company had a net loss of $13.2 million. For this year all dividend distributions were charged to the Contributed Surplus Account. Shareholders' Rights Plan In 2007, the Board of Directors adopted a shareholders' rights agreement and declared a dividend of one preferred share purchase right to purchase one one-thousandth of a Series A Participating Preferred Share for each outstanding common share, par value $0.01 per share. The dividend was payable on February 27, 2007, to shareholders of record on that date. Each right entitles the registered holder to purchase from the Company one one-thousandth of a Series A Participating Preferred Share at an exercise price of $115, subject to adjustment. The Company can redeem the rights at any time prior to a public announcement that a person has acquired ownership of 15% or more of the Company’s common shares. This shareholders rights plan was designed to enable us to protect shareholder interests in the event that an unsolicited attempt is made for a business combination with, or a takeover of, the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Nordic Harrier The arbitration hearings involving the Suezmax vessel Gulf Scandic (now named Nordic Harrier) has been settled between the Company and Gulf Navigation Holding PJSC (GulfNav). In addition to amounts received, the Company reversed previously recorded accruals, and recognized in aggregate $5.3 million as Received Settlement in the Consolidated Statements of Operations. Legal Proceedings and Claims The Company may become a party to various legal proceedings generally incidental to its business and is subject to a variety of environmental and pollution control laws and regulations. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings. Although the ultimate disposition of legal proceedings cannot be predicted with certainty, it is the opinion of the Company’s management that the outcome of any claim which might be pending or threatened, either individually or on a combined basis, will not have a materially adverse effect on the financial position of the Company, but could materially affect the Company’s results of operations in a given year. No claims have been filed against the Company, nor has it been part to any legal proceedings for the fiscal years ended December 31, 2016 and 2015. |
FINANCIAL INSTRUMENTS AND OTHER
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES [Abstract] | |
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | 16. FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES The majority of NAT and its subsidiaries’ transactions, assets and liabilities are denominated in United States dollars, the functional currency of the Company. There is no significant risk that currency fluctuations will have a negative effect on the value of the Company’s cash flows. The Company categorizes its fair value estimates using a fair value hierarchy based on the inputs used to measure fair value for those assets that are recorded on the Balance Sheet at fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following methods and assumptions were used to estimate the fair value of each class of financial instruments and other financial assets. - The carrying value of cash and cash equivalents and marketable securities, is a reasonable estimate of fair value. - The estimated fair value for the long-term debt is considered to be equal to the carrying values since it bears spreads and variable interest rates which approximate market rates. The carrying value and estimated fair value of the Company`s financial instruments at December 31, 2016 and 2015, are as follows: All figures in USD ‘000 Fair Value Hierarchy Level 2016 Fair Value 2016 Carrying Value 2015 Fair Value 2015 Carrying Value Cash and Cash Equivalents 1 82,170 82,170 29,889 29,889 Credit Facility 3 (447,000 ) (447,000 ) (330,000 ) (330,000 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS As of December 31, 2016, the Company was in default with one debt covenant, the required security ratio of vessel value clause. A waiver lowering the covenant requirement to a level at which the Company is in compliance has been obtained from the lenders. This waiver is effective until May 31, 2018. On January 23, 2017 the Company declared a cash dividend of $0.20 per share in respect of the results for the fourth quarter of 2016, which was paid on February 10, 2017. On February 27, 2017, the Company took delivery of Nordic Space, increasing its operating fleet to 30 vessels. On March 28, 2017, NAO announced the completion of a public offering of 41,300,000 common shares, including the exercise of the underwriters’ option of 1,300,000 shares, at a public offering price of $1.25 per share. In the offering NAT acquired 8,000,000 shares at $1.25 per share. On April 19, 2017 the Company declared a cash dividend of $0.20 per share in respect of the results for the first quarter of 2017, which is to be paid on or around June 8, 2017. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Accounting | Basis of Accounting: Effective January 1, 2016, the Company adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs, which required debt issuance costs to a recognized debt liability to be presented in the Consolidated Balance Sheets as a direct deduction from the debt liability rather than an asset. This has also been applied retrospectively to the comparative consolidated balance sheet as of December 31, 2015. The effect of the application on the consolidated balance sheet as of December 31, 2015, is a reduction of Long-Term Debt from $330.0 million to $324.6 million and a reduction in Other Non-Current Assets from $15.9 million to $10.5 million. |
Principles of Consolidation | Principles of Consolidation: The equity method of accounting is used for investments in companies which NAT does not control, but over which NAT has the ability to exercise significant influence. The Company holds an ownership interest of 29.1% in Nordic American Offshore Ltd. (“NAO”). |
Use of Estimates | Use of Estimates: |
Foreign Currency Translation | Foreign Currency Translation: . |
Revenue and Expense Recognition | Revenue and Expense Recognition: Voyage revenues and expenses are recognized ratably over the estimated length of each voyage and, therefore, are allocated between reporting periods based on the relative transit time in each period. The impact of recognizing voyage expenses ratably over the length of each voyage is not materially different on a quarterly and annual basis from a method of recognizing such costs as incurred. Probable losses on voyages are provided for in full at the time such losses can be estimated. Based on the terms of the customer agreement, a voyage is deemed to commence upon the completion of discharge of the vessel’s previous cargo and is deemed to end upon the completion of discharge of the current cargo. However, the Company does not recognize revenue if a charter has not been contractually committed to by a customer and the Company, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. Spot Charters: Time Charters: |
Vessel Operating Expenses | Vessel Operating Expenses : |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Accounts Receivable, Net | Accounts Receivable, Net: |
Inventories | Inventories: |
Vessels, Net | Vessels, Net: |
Impairment of Vessels | Impairment of Vessels: The Company reviews for impairment long-lived assets held and used whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In this respect, the Company reviews its assets for impairment on a vessel by vessel basis. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company evaluates the asset for impairment loss. The impairment loss is determined by the difference between the carrying amount of the asset and fair value (calculated based on estimated discounted operating cashflow). In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the vessels’ future performance, with the significant assumptions being related to charter rates, fleet utilization, operating expenses, capital expenditures, residual value and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations. The estimated net operating cash flows are determined by considering an estimated daily time charter equivalent for the remaining operating days. The Company estimates the daily time charter equivalent for the remaining operating days based on the most recent fifteen year historical average for similar vessels and utilizing available market data for spot market rates over the remaining estimated life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, net of brokerage commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking expenditures). The salvage value used in the impairment test is estimated to be $9.0 million per vessel. If the Company’s estimate of undiscounted future cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair value if the fair value is lower than the vessel’s carrying value. Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate, such assumptions are subjective. There can be no assurance as to how long charter rates and vessel values will remain at their currently low levels or whether they will improve by any significant degree. There was no impairment on vessels for the years ended December 31, 2016, 2015 and 2014. |
Drydocking | Drydocking: |
Investments in Equity Method Investees | Investments in Equity Method Investees: |
Business Combinations | Business combinations: The purchase price is equivalent to the fair value of the consideration transferred and liabilities incurred. Tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition are recorded at the acquisition date fair value. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and liabilities assumed. |
Goodwill | Goodwill: |
Deferred Compensation Liability | Deferred Compensation Liability: |
Defined Benefit Plan | Defined Benefit Plan: |
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income: |
Segment Information | Segment Information: |
Geographical Segment | Geographical Segment: |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: |
Deferred Financing Costs | Deferred Financing Costs: |
Stock-Based Payments | Stock-Based Payments: Restricted Shares to Employees: |
Income Taxes | Income Taxes: Two of the Company’s wholly-owned subsidiaries are located in Norway and are subject to income tax in that jurisdiction at 25%, 27%, and 27% for the years ended December 31, 2016, 2015 and 2014, respectively, of their taxable profit. The income tax expensed for year ended December 31, 2016, 2015 and 2014 was $102,000, $96,000 and $47,000, respectively. Deferred tax assets related to these entities is not material. The Company does not have any unrecognized tax benefits, material accrued interests or penalties related to income taxes. |
Concentration of Credit Risk | Concentration of Credit Risk: For the year ended December 31, 2016, one customer accounted for 32% of the total revenues. For the year ended December 31, 2015, two customers accounted for 42% of the total revenues, with 30% and 12%. For the year ended December 31, 2014, two customers accounted for 40% of the total revenues, with 29% and 11%. Accounts receivable, net, as of December 31, 2016, and 2015 were $18.1 million and $28.6 million, respectively. As of December 31, 2016, three charterers accounted for 44% of the outstanding accounts receivable, with 16%, 16%, and 12%. As of December 31, 2015, two charterers accounted for 43% of the outstanding accounts receivable, with 20% and 21%. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842 ). The update requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. It also offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. We intend to adopt the new revenue and lease standards on January 1, 2018 and January 1, 2019, respectively. We are currently assessing the potential impacts of these new standards, if any, on our consolidated statements and related disclosures. In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of cash flows (Topic 230): Classification of certain cash receipts and cash payments In January 2017, the FASB issued ASU 2017-01, Business Combinations - Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other (Topic 350) , which simplifies the test for goodwill impairment. This Update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. |
NATURE OF BUSINESS (Tables)
NATURE OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
NATURE OF BUSINESS [Abstract] | |
Current fleet | Including four newbuildings, the Company’s current fleet consists of 33 Suezmax crude oil tankers of which 31 were built, or are under construction, in Korea. The Company has entered into preliminary contracts for the construction of three Suezmax vessels expected to be delivered in the second half of 2018. Vessel Built Deadweight Tons Delivered to NAT Nordic Harrier 1997 151,459 1997 Nordic Hawk 1997 151,475 1997 Nordic Hunter 1997 151,401 1997 Nordic Voyager 1997 149,591 2004 Nordic Fighter 1998 153,328 2005 Nordic Freedom 2005 159,331 2005 Nordic Discovery 1998 153,328 2005 Nordic Saturn 1998 157,331 2005 Nordic Jupiter 1998 157,411 2006 Nordic Moon 2002 160,305 2006 Nordic Apollo 2003 159,998 2006 Nordic Cosmos 2003 159,999 2006 Nordic Sprite 1999 147,188 2009 Nordic Grace 2002 149,921 2009 Nordic Mistral 2002 164,236 2009 Nordic Passat 2002 164,274 2010 Nordic Vega 2010 163,940 2010 Nordic Breeze 2011 158,597 2011 Nordic Aurora 1999 147,262 2011 Nordic Zenith 2011 158,645 2011 Nordic Sprinter 2005 159,089 2014 Nordic Skier 2005 159,089 2014 Nordic Light 2010 158,475 2015 Nordic Cross 2010 158,475 2015 Nordic Luna 2004 150,037 2016 Nordic Castor 2004 150,249 2016 Nordic Sirius 2000 150,183 2016 Nordic Pollux 2003 150,103 2016 Nordic Star 2016 159,000 2016 Nordic Space(1) 2017 159,000 2017 Newbuilding(1) 2018 157,000 2018(2) Newbuilding(1) 2018 157,000 2018(2) Newbuilding(1) 2018 157,000 2018(2) (1) Vessel under construction per December 31, 2016. (2) Expected delivery during the second half of 2018 |
VESSELS, NET (Tables)
VESSELS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
VESSELS, NET [Abstract] | |
Vessels, net | Vessels, net, consist of the carrying value of 29 vessels and 24 vessels for the year ended December 31, 2016 and December 31, 2015, respectively. Vessels, net include drydocking costs. All Figures in USD ‘000 2016 2015 Vessels 1,700,040 1,530,245 Drydocking 99,153 82,695 Total 1,799,193 1,612,940 Less Accumulated Depreciation (741,144 ) (650,255 ) Vessels, net 1,058,049 962,685 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENTS [Abstract] | |
Summarized balance sheet information | Summarized balance sheet information for NAO is as follows: All figures in USD ‘000 December 31, 2016 December 31, 2015 Current assets 7,909 14,565 Noncurrent assets 366,945 321,635 Total Assets 374,854 336,200 Current liabilities 4,089 7,735 Noncurrent liabilities 136,568 47,608 Total Shareholders’ Equity 234,196 280,857 Total liabilities and equity 374,854 336,200 |
Summarized statement of operations | Summarized Statement of Operations information for NAO is as follows: Years ended December 31, All figures in USD ‘000 2016 2015 2014 Operating Revenues 17,697 36,372 52,789 Net Operating (Loss) Income (28,543 ) (8,372 ) 11,262 Net (Loss) Income (32,151 ) (10,844 ) 6,931 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
Other non-current assets | All figures in USD ‘000 2016 2015 Fixture, Furniture and Equipment 338 474 Long term deposit (Restricted Cash) 10,149 10,000 Total as of December 31, 10,487 10,474 |
SHARE-BASED COMPENSATION PLAN (
SHARE-BASED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION PLAN [Abstract] | |
Summary of company's restricted stock awards | The tables below summarize the Company’s restricted stock awards as of December 31, 2016: Restricted shares - Employees Weighted- average grant-date fair value - Employees Non-vested at January 1, 2016 33,000 $ 9.84 Granted during the year 137,665 14.65 Vested during the year - - Forfeited during the year (13,500 ) (13.40 ) Non-vested at December 31, 2016 157,165 13.75 |
INTEREST EXPENSE (Tables)
INTEREST EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INTEREST EXPENSE [Abstract] | |
Schedule of interest expense | Interest expenses consist of interest expense on the long-term debt, the commitment fee and amortization of deferred financing costs related to the Credit Facility described in Note 10. All amounts in USD ‘000 2016 2015 2014 Interest Expenses, net of capitalized interest 8,811 7,590 8,686 Commitment Fee 937 2,025 2,330 Amortization of Deferred Financing Costs 1,382 1,240 1,228 Other financial costs 40 - - Total Interest Expenses 11,170 10,855 12,244 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued liabilities | All figures in USD ‘000 2016 2015 Accrued Interest 1,437 1,639 Accrued Expenses 6,211 7,938 Total as of December 31, 7,648 9,577 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS (LOSS) PER SHARE [Abstract] | |
Basic and diluted earnings per share | Basic earnings per share (“EPS”) are computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. All figures in USD except number of shares and earnings (loss) per common share 2016 2015 2014 Numerator Net (Loss) Income (4,456 ) 114,627 (13,166 ) Denominator: Basic - Weighted Average Common Shares Outstanding 92,531,001 89,182,001 85,401,179 Dilutive – Weighted Average Common Shares Outstanding 92,531,001 89,182,001 85,401,179 Earnings (Loss) per Common Share: Basic (0.05 ) 1.29 (0.15 ) Diluted (0.05 ) 1.29 (0.15 ) |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Authorized, issued and outstanding common shares roll-forward | Authorized, issued and outstanding common shares roll-forward is as follows: Authorized Shares Issued and Out- standing Shares Common Stock Balance as of January 1, 2013 90,000,000 52,915,639 529 Common Shares Issued in Follow-on Offering 20,556,250 206 Shares issued in connection with the Scandic acquisition 1,910,112 19 Balance as of December 31, 2013 90,000,000 75,382,001 754 Common Shares Issued in Follow-on Offering 13,800,000 138 Increase in Authorized Shares 90,000,000 Balance as of December 31, 2014 180,000,000 89,182,001 892 Balance as of December 31, 2015 180,000,000 89,182,001 892 Equity incentive plan issuance 137,665 1 Common Shares Issued in Follow-on Offering 12,650,000 127 Balance as of December 31, 2016 180,000,000 101,969,666 1,020 |
FINANCIAL INSTRUMENTS AND OTH36
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES [Abstract] | |
Carrying value of estimated fair value of financial instruments | The carrying value and estimated fair value of the Company`s financial instruments at December 31, 2016 and 2015, are as follows: All figures in USD ‘000 Fair Value Hierarchy Level 2016 Fair Value 2016 Carrying Value 2015 Fair Value 2015 Carrying Value Cash and Cash Equivalents 1 82,170 82,170 29,889 29,889 Credit Facility 3 (447,000 ) (447,000 ) (330,000 ) (330,000 ) |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) | 12 Months Ended | ||
Dec. 31, 2016Vesselt | Dec. 31, 2004Vessel | ||
NATURE OF BUSINESS [Abstract] | |||
Total number of vessels | Vessel | 33 | 3 | |
Number of new buildings expected to be delivered in 2018 | Vessel | 3 | ||
Number of new buildings expected to be delivered in 2017 | Vessel | 1 | ||
Number of operating vessels | Vessel | 29 | ||
Number of vessels in construction | Vessel | 4 | ||
Average approximate deadweight tons per vessel | 156,000 | ||
Number of vessels build in Korea | Vessel | 31 | ||
Number of vessels under contract for construction | Vessel | 3 | ||
Nordic Harrier [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 151,459 | ||
Nordic Hawk [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 151,475 | ||
Nordic Hunter [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 151,401 | ||
Nordic Voyager [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 149,591 | ||
Nordic Fighter [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 153,328 | ||
Nordic Freedom [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 159,331 | ||
Nordic Discovery [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 153,328 | ||
Nordic Saturn [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 157,331 | ||
Nordic Jupiter [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 157,411 | ||
Nordic Moon [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 160,305 | ||
Nordic Apollo [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 159,998 | ||
Nordic Cosmos [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 159,999 | ||
Nordic Sprite [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 147,188 | ||
Nordic Grace [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 149,921 | ||
Nordic Mistral [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 164,236 | ||
Nordic Passat [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 164,274 | ||
Nordic Vega [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 163,940 | ||
Nordic Breeze [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 158,597 | ||
Nordic Aurora [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 147,262 | ||
Nordic Zenith [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 158,645 | ||
Nordic Sprinter [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 159,089 | ||
Nordic Skier [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 159,089 | ||
Nordic Light [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 158,475 | ||
Nordic Cross [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 158,475 | ||
Nordic Luna [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 150,037 | ||
Nordic Castor [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 150,249 | ||
Nordic Sirius [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 150,183 | ||
Nordic Pollux [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 150,103 | ||
Nordic Star [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | 159,000 | ||
Nordic Space [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | [1] | 159,000 | |
Newbuilding [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | [1],[2] | 157,000 | |
Newbuilding [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | [1],[2] | 157,000 | |
Newbuilding [Member] | |||
Schedule of Vessels [Line Items] | |||
Deadweight tons | [1],[2] | 157,000 | |
[1] | Vessel under construction per December 31, 2016. | ||
[2] | Expected delivery during the second half of 2018. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016USD ($)VesselAgreementSegmentSubsidiaryCustomerCharter | Dec. 31, 2015USD ($)CustomerCharter | Dec. 31, 2014USD ($)Customer | Nov. 12, 2015 | ||
Basis of Accounting [Abstract] | |||||
Long-Term Debt | [1] | $ 442,820 | $ 324,568 | ||
Other Non-current Assets | $ 10,487 | 10,474 | |||
Cash and Cash Equivalents [Abstract] | |||||
Original maturities of deposits classified as cash and cash equivalents | 3 months | ||||
Accounts Receivable [Abstract] | |||||
Allowance for doubtful balances | $ 150,000 | 0 | |||
Vessels, Net [Abstract] | |||||
Number of types of vessel | Vessel | 1 | ||||
Historical and average spot market rate | 15 years | ||||
Estimate useful life of vessel | 25 years | ||||
Impairment on vessels | $ 0 | 0 | $ 0 | ||
Impairment Of Long-Lived Assets [Abstract] | |||||
Salvage value of the vessel | $ 9,000 | ||||
Drydock [Abstract] | |||||
Period when vessels are required to be drydocked, minimum | 30 months | ||||
Period when vessels are required to be drydocked, maximum | 60 months | ||||
Deferred Compensation Liability [Abstract] | |||||
Number of individual deferred compensation agreements | Agreement | 2 | ||||
Defined Benefit Plan [Abstract] | |||||
Net liability | $ 100 | $ 200 | |||
Segment Information [Abstract] | |||||
Number of operating segment | Segment | 1 | ||||
Income Taxes [Abstract] | |||||
Statutory rate of corporate earnings | 0.00% | ||||
Number of wholly owned subsidiaries | Subsidiary | 2 | ||||
Income tax rate for wholly-owned subsidiaries in Norway | 25.00% | 27.00% | 27.00% | ||
Income tax expense | $ (102) | $ (96) | $ (47) | ||
Concentration Risk [Line Items] | |||||
Accounts receivable, net | $ 18,100 | 28,600 | |||
Scenario, Previously Reported [Member] | |||||
Basis of Accounting [Abstract] | |||||
Long-Term Debt | 330,000 | ||||
Other Non-current Assets | $ 15,900 | ||||
Ballast Tank [Member] | |||||
Vessels, Net [Abstract] | |||||
Improvements amortized over a period | 8 years | ||||
Nordic American Offshore Limited [Member] | |||||
Principles of Consolidation [Line Items] | |||||
Percentage of ownership interest | 29.10% | ||||
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk percentage | 44.00% | 43.00% | |||
Number of charterers accounted for outstanding amount | Charter | 3 | 2 | |||
Accounts Receivable [Member] | Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk percentage | 16.00% | 20.00% | |||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk percentage | 16.00% | 21.00% | |||
Accounts Receivable [Member] | Customer Three [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk percentage | 12.00% | ||||
Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers accounted for total revenues | Customer | 1 | 2 | 2 | ||
Concentration of credit risk percentage | 32.00% | 42.00% | 40.00% | ||
Revenues [Member] | Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk percentage | 30.00% | 29.00% | |||
Revenues [Member] | Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk percentage | 12.00% | 11.00% | |||
[1] | Long-Term Debt consists of outstanding amounts on the Credit Facility less unamortized deferred financing cost. Outstanding amounts on the Credit Facility were $447,000 and $330,000 as of December 31, 2016 and 2015, respectively. Please see note 2 to these Consolidated Financial Statements describing the effects of the accounting principle change covering the deferred financing cost. |
VESSELS, NET (Details)
VESSELS, NET (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Vessel | Dec. 31, 2015USD ($)Vessel | Dec. 31, 2014USD ($) | |
VESSELS, NET [Abstract] | |||
Number of vessels | Vessel | 29 | 24 | |
Impairment loss on vessel | $ 0 | $ 0 | $ 0 |
Schedule of Vessels [Line Items] | |||
Total | 1,799,193 | 1,612,940 | |
Accumulated Depreciation | (741,144) | (650,255) | |
Vessels, Net | 1,058,049 | 962,685 | |
Vessels [Member] | |||
Schedule of Vessels [Line Items] | |||
Total | 1,700,040 | 1,530,245 | |
Drydocking [Member] | |||
Schedule of Vessels [Line Items] | |||
Total | $ 99,153 | $ 82,695 |
INVESTMENTS (Details)
INVESTMENTS (Details) | Mar. 28, 2017USD ($)$ / sharesshares | Feb. 28, 2016shares | Jun. 30, 2014USD ($)shares | Nov. 18, 2013USD ($)shares | Nov. 30, 2015shares | Nov. 30, 2013shares | Apr. 30, 2013shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | May 30, 2015shares | Dec. 31, 2007$ / shares |
Business Acquisition [Line Items] | ||||||||||||
Private equity placement issued amount | $ 120,069,000 | $ 113,433,000 | ||||||||||
Shares as dividend-in-kind (in shares) | shares | 699,802 | |||||||||||
Gain on investment | $ (46,642,000) | $ (2,462,000) | $ 1,559,000 | |||||||||
Company acquired additional shares in open market (in shares) | shares | 488,216 | |||||||||||
Carrying value per share (in dollars per share) | $ / shares | 8.95 | |||||||||||
Impairment of investment | $ 37,324,000 | |||||||||||
NATs share of NAOs total market capitalization | 31,700,000 | |||||||||||
Common shares issued in public offering (in shares) | shares | 9,343,750 | 11,212,500 | ||||||||||
Public offering Price (in dollars per share) | $ / shares | $ 2.75 | $ 115 | ||||||||||
Summarized Statement of Operations information [Abstract] | ||||||||||||
NATs portion of NAOs Net (Loss) Income | $ 0 | $ 0 | $ 1,929,000 | |||||||||
Subsequent Event [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Common shares issued in public offering (in shares) | shares | 8,000,000 | |||||||||||
Public offering Price (in dollars per share) | $ / shares | $ 1.25 | |||||||||||
Common shares issued in public offering including exercise of underwriters' option (in shares) | shares | 1,300,000 | |||||||||||
Nordic American Offshore Repurchase Program [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Repurchase Program, shares authorized to be repurchased (in shares) | shares | 2,500,000 | |||||||||||
Shares repurchased during the period (in shares) | shares | 1,172,774 | 870,839 | ||||||||||
Remaining shares available to be repurchased (in shares) | shares | 20,686,847 | 22,560,531 | ||||||||||
Nordic American Offshore Limited [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Gain on investment | $ 2,100,000 | |||||||||||
Company acquired additional shares in private transaction (in shares) | shares | 1,521,300 | |||||||||||
Ownership interest | 26.50% | 29.10% | 26.70% | 19.20% | ||||||||
Financial Position [Abstract] | ||||||||||||
Current assets | $ 7,909,000 | $ 14,565,000 | ||||||||||
Noncurrent assets | 366,945,000 | 321,635,000 | ||||||||||
Total Assets | 374,854,000 | 336,200,000 | ||||||||||
Current liabilities | 4,089,000 | 7,735,000 | ||||||||||
Noncurrent liabilities | 136,568,000 | 47,608,000 | ||||||||||
Total Shareholders' Equity | 234,196,000 | 280,857,000 | ||||||||||
Total liabilities and equity | 374,854,000 | 336,200,000 | ||||||||||
NATs share of NAOs equity | 68,100,000 | 75,000,000 | ||||||||||
Summarized Statement of Operations information [Abstract] | ||||||||||||
Operating Revenues | 17,697,000 | 36,372,000 | $ 52,789,000 | |||||||||
Net Operating (Loss) Income | (28,543,000) | (8,372,000) | 11,262,000 | |||||||||
Net (Loss) Income | (32,151,000) | (10,844,000) | $ 6,931,000 | |||||||||
NATs portion of NAOs Net (Loss) Income | $ (9,300,000) | $ (2,500,000) | ||||||||||
Nordic American Offshore Limited [Member] | Subsequent Event [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Ownership interest | 22.60% | |||||||||||
Common shares issued in public offering (in shares) | shares | 41,300,000 | |||||||||||
Public offering Price (in dollars per share) | $ / shares | $ 1.25 | |||||||||||
Transaction recognized in dilution loss | $ 2.6 | |||||||||||
Nordic American Offshore Limited [Member] | Private Placement [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Private equity placement issued amount | $ 250,000,000 | |||||||||||
Private equity placement participation | $ 65,000,000 | |||||||||||
Private equity placement participation (in shares) | shares | 4,333,566 | |||||||||||
Company acquired additional shares in private transaction (in shares) | shares | 1,571,749 | |||||||||||
Nordic American Offshore Limited [Member] | IPO [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Shares acquired (in shares) | shares | 375,000 | |||||||||||
Cost of shares acquired | $ 5,600,000 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 10, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill recognized | $ 18,979 | $ 18,979 | |
Scandic American Shipping Ltd [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 33,300 | ||
Common shares paid | 18,100 | ||
Cash consideration | 8,000 | ||
Payable to seller | $ 7,200 | ||
Number of shares transferred in acquisition (in shares) | 1,910,112 | ||
Share price of stock transferred (in dollars per share) | $ 9.50 | ||
Goodwill recognized | $ 19,000 | ||
Settlement loss | $ 5,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||
Warrants received (in shares) | 833,333 | |||
Warrants exercise price (in dollars per share) | $ 15 | |||
Scandic American Shipping Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fee received | $ 100,000 | $ 200,000 | $ 150,000 | |
Board Member [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable | 0 | 0 | ||
Costs and expenses, related party | 300 | 100 | 100 | |
Immediate Family Member of the Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable | 0 | 0 | ||
Costs and expenses, related party | 100 | 100 | 100 | |
Nordic American Offshore Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Costs and expenses, related party | $ 2,200 | $ 2,100 | 2,200 | |
Success fees services | $ 1,500 |
DEFERRED COMPENSATION LIABILI43
DEFERRED COMPENSATION LIABILITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Post Retirement Benefits With Individual Employees [Line Items] | |||
Total expense recognized | $ 1,369 | $ 324 | $ 782 |
Total deferred compensation liability | $ 14,500 | $ 13,000 | |
Executive Vice President and Chief Financial Officer [Member] | |||
Post Retirement Benefits With Individual Employees [Line Items] | |||
Required service period | 20 years 6 months | ||
Maximum benefit as a percentage of salary | 66.00% | ||
Retirement age | 67 years | ||
Imputed interest rate | 2.60% | 2.70% | |
Chairman, President and CEO [Member] | |||
Post Retirement Benefits With Individual Employees [Line Items] | |||
Required service period | 14 years | ||
Maximum benefit as a percentage of salary | 66.00% | ||
Retirement age | 70 years | ||
Imputed interest rate | 2.60% | 2.70% | |
Chief Executive Officer and Chief Financial Officer [Member] | |||
Post Retirement Benefits With Individual Employees [Line Items] | |||
Total expense recognized | $ 1,800 | $ 400 | $ 400 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
OTHER NON-CURRENT ASSETS [Abstract] | ||
Fixture, Furniture and Equipment | $ 338 | $ 474 |
Long term deposit (Restricted Cash) | 10,149 | 10,000 |
Total | $ 10,487 | $ 10,474 |
SHARE-BASED COMPENSATION PLAN45
SHARE-BASED COMPENSATION PLAN (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 05, 2011 | Feb. 23, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2013 |
Equity Incentive Plan 2011 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total compensation cost for the period | $ 0.4 | $ 0.4 | $ 1.1 | ||||
Vesting requirement lifted for restricted shares (in shares) | 174,000 | ||||||
Restricted shares - Employees and Non-Employees [Roll Forward] | |||||||
Granted during the year (in shares) | 400,000 | ||||||
Equity Incentive Plan 2011 [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement shares cliff vesting period | 4 years | ||||||
Equity Incentive Plan 2011 [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement shares cliff vesting period | 5 years | ||||||
Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares repurchased during the period (in shares) | 13,500 | ||||||
Restricted shares - Employees and Non-Employees [Roll Forward] | |||||||
Non-vested at beginning of period (in shares) | 33,000 | ||||||
Granted during the year (in shares) | 137,665 | ||||||
Vested during the year (in shares) | 0 | ||||||
Forfeited during the year (in shares) | (13,500) | ||||||
Non-vested at end of period (in shares) | 157,165 | 33,000 | |||||
Weighted-average grant-date fair value - Employees [Abstract] | |||||||
Non-vested at beginning of period (in dollars per share) | $ 9.84 | ||||||
Granted during the year (in dollars per share) | 14.65 | ||||||
Vested during the year (in dollars per share) | 0 | ||||||
Forfeited during the year (in dollars per share) | (13.40) | ||||||
Non-vested at end of period (in dollars per share) | $ 13.75 | $ 9.84 | |||||
Restricted Stock Awards [Member] | Employees and Non Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares repurchased during the period (in shares) | 10,000 | ||||||
Restricted Stock Awards [Member] | Employees and Non Employees [Member] | Equity Incentive Plan 2011 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value of shares issued to manager (in dollars per share) | $ 18.05 | $ 23.88 | |||||
Share-based compensation arrangement shares cliff vesting period | 4 years | ||||||
Common shares repurchased at fair value (in shares) | 33,000 | ||||||
Unrecognized compensation cost related to unvested restricted stock | $ 1.5 | ||||||
Weighted average period to recognize the unrecognized compensation cost | 2 years 8 months 12 days | ||||||
Restricted shares - Employees and Non-Employees [Roll Forward] | |||||||
Granted during the year (in shares) | 74,000 | 326,000 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - Credit Facility [Member] - USD ($) $ in Millions | Oct. 26, 2012 | Dec. 31, 2015 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 430 | $ 500 | |
Maturity date | Oct. 31, 2017 | Dec. 31, 2020 | |
Repayment obligation | $ 0 | ||
Deferred financing costs | 4.6 | ||
Drawn amount | $ 330 | $ 447 | |
Percentage of increase in margin for the period of waiver | 2.00% | ||
Maximum percentage of Adjusted Net Operating Earnings used to distribute dividends in first quarter of 2017 | 85.00% | ||
Maximum percentage of Adjusted Net Operating Earnings used to distribute dividends in second quarter of 2017 | 75.00% |
INTEREST EXPENSE (Details)
INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST EXPENSE [Abstract] | |||
Interest Expenses, net of capitalized interest | $ 8,811 | $ 7,590 | $ 8,686 |
Commitment Fee | 937 | 2,025 | 2,330 |
Amortization of Deferred Financing Costs | 1,382 | 1,240 | 1,228 |
Other financial costs | 40 | 0 | 0 |
Total Interest Expenses | 11,170 | 10,855 | 12,244 |
Interest expenses, capitalized interest | $ 1,600 | $ 1,000 | $ 0 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ACCRUED LIABILITIES [Abstract] | ||
Accrued Interest | $ 1,437 | $ 1,639 |
Accrued Expenses | 6,211 | 7,938 |
Total as of December 31 | $ 7,648 | $ 9,577 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator [Abstract] | |||
Net (Loss) Income | $ (4,456) | $ 114,627 | $ (13,166) |
Denominator [Abstract] | |||
Basic - Weighted Average Common Shares Outstanding (in shares) | 92,531,001 | 89,182,001 | 85,401,179 |
Dilutive - Weighted Average Common Shares Outstanding (in shares) | 92,531,001 | 89,182,001 | 85,401,179 |
Earnings (Loss) per Common Share [Abstract] | |||
Basic (in dollars per share) | $ (0.05) | $ 1.29 | $ (0.15) |
Diluted (in dollars per share) | $ (0.05) | $ 1.29 | $ (0.15) |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 17, 2014 | Sep. 30, 2016 | Apr. 30, 2014 | Nov. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2007 |
Authorized Shares [Roll forward] | ||||||||||
Balance at beginning of period (in shares) | 180,000,000 | |||||||||
Balance at end of period (in shares) | 180,000,000 | 180,000,000 | ||||||||
Issued and Outstanding Shares [Roll forward] | ||||||||||
Balance at beginning of period, issued (in shares) | 89,182,001 | |||||||||
Balance at beginning of period, outstanding (in shares) | 89,182,001 | |||||||||
Shares issued (in shares) | 9,343,750 | 11,212,500 | ||||||||
Balance at end of period, issued (in shares) | 101,969,666 | 89,182,001 | ||||||||
Balance at end of period, outstanding (in shares) | 101,969,666 | 89,182,001 | ||||||||
Common Stock [Roll forward] | ||||||||||
Equity incentive plan issuance | $ 1 | $ 0 | ||||||||
Shares issued, value | 120,069 | 113,433 | ||||||||
Common Stock [Abstract] | ||||||||||
Net proceeds from underwritten public offering of common shares | $ 120,100 | $ 113,400 | $ 70,900 | $ 102,200 | 120,068 | $ 0 | 113,433 | |||
Additional Paid in Capital [Abstract] | ||||||||||
Share premium fund | 77,400 | 77,400 | ||||||||
Reduction of share premium | $ 208,200 | |||||||||
Contributed Surplus Account [Abstract] | ||||||||||
Net (Loss) Income | (4,456) | 114,627 | $ (13,166) | |||||||
Dividend paid | 125,700 | 123,000 | ||||||||
Contribution to surplus account | $ 92,800 | $ 8,400 | ||||||||
Shareholders' Rights Plan [Abstract] | ||||||||||
Preferred share purchase right | one preferred stock purchase right to purchase one one-thousandth of a share of our Series A Participating Preferred Stock for each outstanding share of its common stock, par value $0.01 per share | |||||||||
Common Share, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Shareholders rights, exercise price (in dollars per share) | $ 2.75 | $ 115 | ||||||||
Percentage of common share ownership | 15.00% | |||||||||
Common Stock [Member] | ||||||||||
Authorized Shares [Roll forward] | ||||||||||
Balance at beginning of period (in shares) | 180,000,000 | 180,000,000 | 90,000,000 | 90,000,000 | ||||||
Increase in Authorized Shares (in shares) | 90,000,000 | |||||||||
Balance at end of period (in shares) | 180,000,000 | 180,000,000 | 180,000,000 | 90,000,000 | ||||||
Issued and Outstanding Shares [Roll forward] | ||||||||||
Balance at beginning of period, issued (in shares) | 89,182,001 | 89,182,001 | 75,382,001 | 52,915,639 | ||||||
Balance at beginning of period, outstanding (in shares) | 89,182,001 | 89,182,001 | 75,382,001 | 52,915,639 | ||||||
Equity incentive plan issuance (in shares) | 137,665 | 33,000 | ||||||||
Shares issued (in shares) | 12,650,000 | 13,800,000 | 20,556,250 | |||||||
Balance at end of period, issued (in shares) | 101,969,666 | 89,182,001 | 89,182,001 | 75,382,001 | ||||||
Balance at end of period, outstanding (in shares) | 101,969,666 | 89,182,001 | 89,182,001 | 75,382,001 | ||||||
Common Stock [Roll forward] | ||||||||||
Balance at beginning of period | $ 892 | $ 892 | $ 754 | $ 529 | ||||||
Equity incentive plan issuance | 1 | 0 | ||||||||
Shares issued, value | 127 | 138 | 206 | |||||||
Balance at end of period | 1,020 | 892 | 892 | $ 754 | ||||||
Contributed Surplus Account [Abstract] | ||||||||||
Net (Loss) Income | $ 0 | $ 0 | $ 0 | |||||||
Common Stock [Member] | Scandic [Member] | ||||||||||
Issued and Outstanding Shares [Roll forward] | ||||||||||
Shares issued (in shares) | 1,910,112 | |||||||||
Common Stock [Roll forward] | ||||||||||
Shares issued, value | $ 19 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($)Claim | Dec. 31, 2014USD ($) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Settlement amount | $ | $ 5,328 | $ 0 | $ 0 |
Number of claims filed | Claim | 0 | 0 |
FINANCIAL INSTRUMENTS AND OTH52
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | $ 82,170 | $ 29,889 |
Fair Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit Facility | (447,000) | (330,000) |
Carrying Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 82,170 | 29,889 |
Carrying Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit Facility | $ (447,000) | $ (330,000) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 01, 2017 | Apr. 19, 2017$ / shares | Mar. 28, 2017$ / sharesshares | Feb. 27, 2017Vessel | Jan. 23, 2017$ / shares | Nov. 30, 2013shares | Apr. 30, 2013shares | May 01, 2017 | Dec. 31, 2016Vessel$ / shares | Dec. 31, 2007$ / shares |
Subsequent Event [Line Items] | ||||||||||
Number of operating vessels | Vessel | 29 | |||||||||
Common shares issued in public offering (in shares) | shares | 9,343,750 | 11,212,500 | ||||||||
Public offering price (in dollars per share) | $ / shares | $ 2.75 | $ 115 | ||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.20 | $ 0.20 | ||||||||
Dividend declare date | Apr. 19, 2017 | Jan. 23, 2017 | ||||||||
Dividend payment date | Jun. 8, 2017 | Feb. 10, 2017 | ||||||||
Number of operating vessels | Vessel | 30 | |||||||||
Common shares issued in public offering (in shares) | shares | 8,000,000 | |||||||||
Public offering price (in dollars per share) | $ / shares | $ 1.25 | |||||||||
Common shares issued in public offering including exercise of underwriters' option (in shares) | shares | 1,300,000 | |||||||||
Nordic American Offshore Limited [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Common shares issued in public offering (in shares) | shares | 41,300,000 | |||||||||
Public offering price (in dollars per share) | $ / shares | $ 1.25 |