Nordic American Tankers (NYSE:NAT) stock is gaining following another business update from the shipping company on Thursday.
Nordic American Tankers initially told investors that the economic uncertainty surrounding the war between Ukraine and Russia was good for its business. The company pointed to customers paying more for it to take longer routes for oil deliveries from different areas.
According to Nordic American Tankers, Europe seeking oil from different countries is behind this change. While one-third of its oil was previously imported from Russia, sanctions have stopped that. This has it switching to oil from West Africa, the Americas, and the Middle East.
Now, Nordic American Tankers is backing up that claim with additional data. The company says that there is now solid momentum in this market. As a result, it’s obtaining spot contracts for a month or longer with rates higher than $50,000 per day.
Of course, that doesn’t tell investors just how much profit Nordic American Tankers is making from these contracts. However, the company does make sure to point out that its operating costs for each of its ships are only about $8,000 a day.
The positive shipping news from Nordic American Tankers has its stock seeing heavy trading today. As of this writing, more than 9 million shares of NAT stock have changed hands. For the record, the company’s daily average trading volume is about 3.9 million shares.
NAT stock is up 4.8% as of Thursday morning and is up 35.3% since the start of the year.
Investors on the hunt for more stock market news will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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