Nordic American Offshore Ltd (NYSE:NAO) has announced that the family of its chairman Herbjorn Hansson acquired more shares in the company. Specifically, the company said that a son of Hansson, Alexander Hansson bought 100,000 in NAO. The shares were purchased at the price of $3.65 apiece.
Shares of Nordic American gained on the news. The stock closed at $3.71 in the last session after adding 6% from the previous session. Nordic American stock is down nearly 30% YTD and down more than 40% from a year ago.
Shifting of corporate headquarters
Hansson’s move to increase an equity stake in Nordic American comes on the heels of the company’s decision to relocate its corporate headquarters. Nordic American shifted its corporate headquarters to Bermuda from the Marshall Islands. The change in corporate address was effective Sept. 27, the company said in a statement.
Nordic American said that the shift in corporate location doesn’t affect its everyday operations. Instead, it said the shift has much to do with administrative matters and has no impact on shareholders.
Nordic American posted EPS loss of $0.36 in 2Q2016. That compared to EPS loss of $0.30 in 1Q2016 and EPS loss of $0.02 in 2Q2015.
As of the end of the latest quarter, NAP said it had a net debt of $122 million on its balance sheet for its 10 vessel fleet. Of the $150 million credit facility, the company updated that $132 million has been drawn and that the credit will be due for repayment in March 2020.
While announcing the 2Q2016 results, the management of Nordic American reiterated its commitment to driving internal efficiency. The focus remains on keeping the cost of operating the vessel fleet low, with the management adding that it doesn’t anticipate administrative costs to rise with the expansion of the fleet.
Nordic American distributed a quarterly dividend of $0.05 a share for 2Q2016 on Sept. 6. The dividend captured shareholders of record as of August 17.