Report for the 4th Quarter 2009. Announces Dividend for the 50th Consecutive Quarter. No Change to Dividend Policy. The fleet has expanded to 18 units. Further vessel acquisitions under planning.

4th Quarter 2009 Results:http://hugin.info/201/R/1384019/342816.pdf
Hamilton, Bermuda, February 12, 2010
On  or about March 5th NAT will pay  a dividend for the 50th consecutive quarter
since  the first three  vessels were delivered  to the Company  in the autumn of
1997 when  the Company commenced operations. Including the dividend for 4Q09 the
total dividend payment amounts to $40.14 per share. Following a strengthening of
the  spot market the dividend for 4Q09 was $0.25 per share compared to $0.10 for
3Q09.
Some salient points of this report are as follows:
 
  * The level of the spot tanker market was higher during 4Q09 than during
    3Q09. The spot tanker market for the 1Q10 has started on a positive note
    compared with 4Q09. There are indications that the world economy has
    bottomed out which is positive for the tanker business.
  * Earnings per share in 4Q09 was -$0.10 as against -$0.28 in 3Q09. Dividend
    per share was $0.25 in 4Q09 compared to $0.10 during 3Q09.
  * On October 5th 2009, the Company announced that it had agreed to acquire a
    2002-built double hull suezmax tanker which was delivered to the Company
    November 17th 2009.
  * On November 8th the Company announced that it had agreed to acquire an
    additional double hull suezmax tanker which we expect will be delivered to
    the Company by the end of February 2010.
  * On January 22nd 2010 we priced a follow-on offering which is expected to
    enable the Company to increase its fleet and the dividend capacity. The
    proceeds to the Company from the follow-on offering was $137m before cash
    offering costs.
  * The Company has no net debt
 
Operating its fleet in the spot market, except for one vessel, the Company is in
a position to reap the benefits of a potential upswing in the tanker market.
 
During  2009, NAT agreed  to acquire  four vessels.  Three of those vessels have
been delivered to the Company and the fourth vessel is scheduled to be delivered
by  the  end  of  February  2010. The  acquisitions  are accretive, and are also
increasing the dividend potential of the Company. The acquisitions have improved
our  position relative to competitors who, in our view, have had a tough time in
coping with the consequences of the international financial crisis.
 
We  have  two  newbuildings  coming  in  2010, bringing the trading fleet to 18
vessels.
 
As  in the past, in order to create  value for shareholders, the fleet must grow
faster  than the share  count over time.  As an example,  the follow-on offering
which  was closed January 27, 2010 increased the  Company's share count by about
10%. This  will enable the Company to  increase its fleet by about 22%, assuming
an  increase  from  18 to  22 vessels.  This  is  an  example of accretion while
recognizing  that the  net debt  is expected  to be  slightly higher  after such
prospective acquisitions.
 
Typically,  our dividend  follows the  level of  the spot suezmax tanker freight
market.   That is why our dividend  was higher in 4Q09 than in 3Q09.  Generally,
when  spot rates  in the  suezmax freight  market increase,  our dividend can be
expected to increase. Therefore, the Company has the full upside associated with
a  market improvement. Going forward, we  expect that spot suezmax freight rates
may fluctuate in an unpredictable manner.
 
The  present instability in  the financial markets  is posing serious issues for
debt-laden  shipping companies. Some of them have suspended dividends or changed
their  dividend policy and they have had  to negotiate new terms with the banks.
 NAT  is staying  its course  in this  environment -  having no  net debt. We go
forward  with  a  view  to  preserving  what  we  consider  the strong financial
situation  of the Company - both in absolute  and relative terms - as we believe
that is in the best interests of our shareholders.
 
Our  primary  objective  is  to  maximize  total  return[1] to our shareholders,
including maximizing our quarterly cash dividend.
 
The Company does not engage in any type of derivatives.
 
After  adjusting for non-recurring  charges in 4Q09, net  income from continuing
operations  was -$0.06 per share. The spot  tanker market for suezmax vessels in
2010 has started out well above the level we saw in 4Q09.
 
In  4Q09 total off-hire (time out of service)  for the Company's fleet was about
64 days  of  which  planned  off-hire  was  about 40 days. In 2010 one vessel is
scheduled for dry-docking which we expect will take place in the first quarter.
 
Financial Information:
 
The  Board has declared a dividend of  $0.25 per share to shareholders on record
as of February 23, 2010 for 4Q09. A dividend of $0.10 per share was declared for
3Q09. The  amount of dividends per share is  above all a reflection of the level
of  the spot tanker market during the  relevant quarter and the number of shares
outstanding. The number of shares outstanding for the fourth quarter of 2009 was
42,204,904.  After  the follow-on  offering in  January this  year the number of
outstanding shares is 46,898,782.
 
Net  income for  4Q09 was -$4.3m,  or -$0.10  per share  (EPS), compared  to net
income of -$11.8 million or -$0.28 per share for 3Q09. One-time charges in 4Q09
are  $1.7m or  $0.04 per  share. Therefore,  income from  ongoing operations was
-$0.06 per share.
 
Reflecting  a stronger spot market in  the quarter, the Company's operating cash
flow[2] was $10.5m for 4Q09, compared to $3.8 million for 3Q09.
 
The  follow-on offering of 4.6 million shares  which was priced January 22nd and
closed  January  27th produced  proceeds  of  $137  million before cash offering
costs.  This offering  will enable  the Company  to acquire more vessels without
going to the equity market.
 
We consider our general and administrative costs per day per ship to be at a low
level.  We also  continue to  concentrate on  keeping our vessel operating costs
low, while always maintaining our commitment to safe vessel operations.
 
We estimate that our average cash breakeven level for our fleet is below $10,000
per day per vessel. When the freight market is above this level, the Company can
be expected to pay a dividend. The breakeven rate is the amount of average daily
revenues our vessels would need to earn in the spot market in order to cover our
vessel   operating   expenses,   voyage  expenses,  if  any,  cash  general  and
administrative expenses, interest expense and other financial charges.
 
At  the time  of this  report, the  Company has  no net  debt and has an undrawn
revolving credit facility of $500 million. The credit facility, which matures in
September  2013, is not  subject to  reduction by  the lenders  and there  is no
obligation  to repay principal during the term of the facility. The Company pays
interest only on drawn amounts and a commitment fee for undrawn amounts.
 
For  further details  on our  financial position  and for  other periods such as
4Q08 and  for the twelve months  ended December 31, 2009 and December 31, 2008,
please see later in this release.
 
The Fleet:
 
With the delivery of the Nordic Mistral in November 2009 and the vessel expected
to  be delivered  to us  by the  end of  February 2010 the Company will have 16
trading vessels.
 
By  way of comparison, in  the autumn of 2004 the  Company had three vessels; at
the  end  of  2005 the  Company  had  eight  vessels; and at the end of 2006 the
Company  had 12 vessels. During  2Q09, we had 13 vessels  in operation. With the
two  newbuildings announced in  November 2007 and the  most recent acquisitions,
the Company is expected to have a fleet of 18 vessels later in 2010, assuming no
further  acquisitions in  the meantime.  Please see  fleet list below. We expect
that further vessels will be added to our fleet in the foreseeable future.
 
Vessel             Dwt         Employment
 
  Gulf Scandic       151,475     Fixed charter until November 2010
 
  Nordic Hawk        151,475     Spot
 
  Nordic Hunter      151,400     Spot
 
  Nordic Voyager     149,591     Spot
 
  Nordic Fighter     153,328     Spot
 
  Nordic Freedom     163,455     Spot
 
  Nordic Discovery   153,328     Spot
 
  Nordic Saturn      157,332     Spot
 
  Nordic Jupiter     157,411     Spot
 
  Nordic Cosmos      159,998     Spot
 
  Nordic Moon        159,999     Spot
 
  Nordic Apollo      159,999     Spot
 
  Nordic Sprite      147,188     Spot
 
  Nordic Grace       149,921     Spot
 
  Nordic Mistral     164,236     Spot
 
  Nordic Passat      164,274     Delivery expected by end February 2010
 
  Nordic Galaxy      163,000     Delivery expected by end June 2010
 
  Nordic Vega        163,000     Delivery expected by end September 2010
 
  Total              2,820,410
 
No scheduled dry-dockings were undertaken during 4Q09 except for one vessel that
underwent  ballast tank maintenance work at a Chinese yard. Typically, this type
of work is often carried through while the vessels are trading or during planned
drydockings  of vessels. However, because of  the low tanker market last October
we  decided to do the  work at a shipyard  with very good results.  In 1Q10, one
dry-docking  is expected to take place.  During 4Q09, we had in total 24 days of
unplanned  off-hire and 40 days of planned  off-hire (tank maintenance work) for
our fleet.
 
Financial Instability and the Tanker Market:
 
In our quarterly reports to shareholders we have often stressed the significance
of  the development  of the  world economy  for the  tanker industry. Presently,
there  are some bright spots on the horizon for the world economy.  The decrease
in  exports of oil from OPEC to the West seems to have bottomed out. We consider
this to be good news for the tanker markets.
 
For NAT, an improved freight tanker market can be expected to result in a higher
dividend.  However, as a  matter of policy  the Company does  not predict future
spot rates.
 
The   recession   is   reducing   the   demand   for   transportation   capacity
internationally.  The demand  side for  tankers to  some extent  continues to be
impacted positively by the use of tankers for storage.
 
On  the supply side, we now see clearly that the current financial situation for
many  shipping companies  has led  to delayed  deliveries of newbuildings and to
cancellation of newbuilding orders.
 
The average daily rate for our spot vessels was $18,700 per day net to us during
4Q09 compared with $14,075 per day for 3Q09 after adjustment of one time charges
and accounting for lost time.
 
Spot market rates for suezmax tankers are very volatile. The average spot market
rate  for modern suezmax  tankers as reported  by Imarex was  $23,682 per day in
4Q09 compared to $13,012 per day during 3Q09.  The average Imarex rate so far in
1Q10 is $41,592 per day.
 
The  graph shows the  average yearly spot  rates since 2000 as  reported by R.S.
Platou  Economic  Research  a.s.   The  rates  as reported by shipbrokers and by
Imarex may vary from the actual rates we achieve in the market.
 
Strategy going forward:
 
We  believe that the operating model of the  Company works to the benefit of our
shareholders.
 
The  serious financial  turmoil may  represent attractive  opportunities for our
Company.
 
The  Company has a sustainable strategy when  the spot market is strong and also
in  a weaker market environment. Thus, the Company essentially has the following
strategic  position going forward: If the  market is firm, very good results and
dividend can be expected.
 
In  a weaker market,  the dividend will  be lower which  is a minus. However, if
rates  are  down  for  a  while,  the  Company  is  in  a  position to buy ships
inexpensively  and accretively which is a plus. This  plus can be expected to be
larger  than the minus.  Several of  our listed competitors have significant net
debt  which could make it difficult for them to buy vessels in a weak market. In
this way, the Company has covered both scenarios.
 
Our  policy is to  grow when it  is profitable and  accretive to do so; that is,
after  an acquisition of vessels or other forms of expansion, the Company should
be  able pay a higher  dividend per share and  produce higher earnings per share
than  had such an acquisition not taken  place. We believe that the acquisitions
this past year are examples of such accretive transactions.
 
We  believe that our full  dividend payout policy will  continue to enable us to
achieve a competitive cash yield compared with that of other shipping companies.
 
We  encourage investors wishing to have exposure  to the tanker sector to assess
our model and invest in our Company.
 
In the midst of the international financial instability, our Company is well
positioned. To the best of our ability we shall endeavor to safeguard and
further strengthen this position.
 
                                   * * * * *
 
[1] Total Return is defined as stock price plus dividends, assuming  dividends
are reinvested in the stock
 
[2] Operating cash flow is a non-GAAP number.  Please see later in this
announcement for a reconciliation of operating cash flow to income from vessel
operations.
 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters   discussed   in  this  press  release  may  constitute  forward-looking
statements.   The Private Securities Litigation Reform Act of 1995 provides safe
harbor   protections  for  forward-looking  statements  in  order  to  encourage
companies   to   provide   prospective   information   about   their   business.
 Forward-looking  statements  include  statements  concerning plans, objectives,
goals,  strategies, future events or performance, and underlying assumptions and
other statements, which are other than statements of historical facts.
 
The  Company desires  to take  advantage of  the safe  harbor provisions  of the
Private   Securities  Litigation  Reform  Act  of  1995 and  is  including  this
cautionary  statement in connection with this safe harbor legislation. The words
"believe,"  "anticipate," "intend,"  "estimate," "forecast,"  "project," "plan,"
"potential,"  "may,"  "should,"  "expect,"  "pending"  and  similar  expressions
identify forward-looking statements.
 
The  forward-looking statements  in this  press release  are based  upon various
assumptions,  many  of  which  are  based,  in  turn,  upon further assumptions,
including   without  limitation,  our  management's  examination  of  historical
operating  trends, data contained  in our records  and other data available from
third  parties.  Although we believe that these assumptions were reasonable when
made,   because   these   assumptions  are  inherently  subject  to  significant
uncertainties and contingencies which are difficult or impossible to predict and
are  beyond our control, we cannot assure you that we will achieve or accomplish
these  expectations,  beliefs  or  projections.   We  undertake no obligation to
update  any forward-looking statement,  whether as a  result of new information,
future events or otherwise.
 
Important  factors  that,  in  our  view,  could  cause actual results to differ
materially  from those discussed  in the forward-looking  statements include the
strength of world economies and currencies, general market conditions, including
fluctuations in charter rates and vessel values, changes in demand in the tanker
market,  as a result of changes in  OPEC's petroleum production levels and world
wide  oil consumption and storage, changes  in our operating expenses, including
bunker  prices,  drydocking  and  insurance  costs,  the market for our vessels,
availability  of financing  and refinancing,  changes in  governmental rules and
regulations or actions taken by regulatory authorities, potential liability from
pending  or  future  litigation,  general  domestic  and international political
conditions,  potential  disruption  of  shipping  routes  due  to  accidents  or
political  events, vessels breakdowns and instances  of off-hire, failure on the
part  of a seller to complete a sale to us and other important factors described
from  time to time in  the reports filed by  the Company with the Securities and
Exchange Commission, including the prospectus and related prospectus supplement,
our Annual Report on Form 20-F, and our Reports on Form 6-K.
 
Contacts:
Scandic American Shipping Ltd
Manager for:
Nordic American Tanker ShippingLimited
P.O Box 56, 3201 Sandefjord, Norway
Tel: + 47 33 42 73 00 E-mail:  nat@scandicamerican.com
 
Rolf Amundsen, Investor Relations
Nordic American Tanker ShippingLimited
Tel: +1 800 601 9079 or + 47 908 26 906
 
Gary J. Wolfe
Seward & Kissel LLP, New York, USA
Tel: +1 212 574 1223
 
Turid M. Sørensen, CFO
Nordic American Tanker ShippingLimited
Tel:  + 47 33 42 73 00 or + 47 905 72 927
 
Herbjørn Hansson, Chairman and Chief Executive Officer
Nordic American Tanker ShippingLimited
Tel:  +1 866 805 9504 or + 47 901 46 291
 
[HUG#1384019]
 
4th Quarter 2009 Results: http://hugin.info/201/R/1384019/342816.pdf