Nordic Tanker CEO Says Oil Glut Is Creating Revenue, Stock Trades Higher

Nordic American Tanker Ltd NAT is the third-largest oil tanker company and is taking advantage of the limited availability of oil storage by charging nearly $70,000 per day for ship usage, CEO Herbjorn Hansson told CNBC's Jim Cramer.

Nordic's Clients Include Exxon, BP

Nordic American doesn't "speculate in oil" prices, rather it speculates on "carrying oil" for clients, which is a whole different story, Hansson said Friday on "Mad Money." 

The company's client list includes "all the big boys" like Exxon Mobil Corporation XOM and BP plc BP as they scramble to find additional storage space for oil.

The cost Nordic American charges customers is upwards of $70,000 per day for a six-month period and an additional $8,000 per day in operating costs, the CEO said. Perhaps surprising to some, Nordic American doesn't have any hedge fund clients, who mostly don't understand the business behind oil storage, he said.

Nordic 'Making A Lot Of Money'

The current market environment happens to be the strongest seen in a while and Nordic American is "making a lot of money at this time," Hansson said. 

Revenue for the first quarter is projected to rise 65% year-over-year to $88.5 million, according to data from FactSet. The new source of revenue puts Nordic American in a much better position to reward shareholders through a dividend, he said. 

What's Next For Nordic 

The company doesn't have a lot of debt on the balance sheet and was debt-free a few years ago, the CEO said. Nordic American will once again become debt-free again moving forward while boasting "the strongest" balance sheet and best dividend in the industry, he said. 

The stock was trading 13.16% higher at $6.62 in Monday's premarket session.

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