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2016-05-12

Nordic American Offshore Ltd: Nordic American Offshore Ltd. (NYSE:NAO) 1Q2016 Dividend and Earnings Report

Link to the complete 1st Quarter 2016 report:http://hugin.info/159489/R/2012102/745203.pdf
http://hugin.info/159489/R/2012102/745203.pdf

Hamilton, Bermuda, May 12, 2016.

Nordic American Offshore Ltd. ("NAO" or "the Company") became stock listed on
the New York Stock Exchange (NYSE) on June 12, 2014. The operating cash
flow[1]for NAO was -$2.2m in 1Q2016. NAO is performing well compared with
several other companies in the industry which are in financial difficulties.
NAO is fully financed up to early 2020. NAO should be differentiated from
other companies owning Platform Supply Vessels (PSVs).

We see opportunities to grow the Company. NAO has ten high-quality PSVs built
in Norway in the period 2012-2016. Eight of these are now in operation. The
NAO Horizon was taken over on April 19, 2016. The vessel is presently at the
yard awaiting improved trading conditions. One more vessel is under
construction at Vard, Aukra for delivery in June 2016. A specific feature of
our vessels is the very low fuel consumption, resulting in low emissions and
producing attractive transportation economics. The vessels are also
particularly well suited to North Sea operations, where weather conditions
can be severe.

As announced on April 27, 2016, NAO has declared a dividend of $0.08 per share
for 1Q2016. The record date is May 12, 2016 and the payment of dividend is
expected to take place about May 27, 2016. Since its original establishment
in late 2013, NAO has paid dividends for 9 consecutive quarters, totalling
$2.49 per share, including the dividend to be paid about May 27, 2016.

The North Sea is the trading area for the Company's PSVs. The fall of oil
prices since 3Q2014 is negatively affecting service providers to the oil
industry.

Key points to consider:

* Operating cash flow per share has been: -$0.10 for 1Q2016, $0.00 for 4Q2015
and $0.07 for 1Q2015.
* Earnings per share (EPS) has been: -$0.30 for 1Q2016, -$0.19 for 4Q2015 and
-$0.12 for 1Q2015. EPS does not take into account risk.
* NAO had at the end of 1Q2016 totalnet debtof $55.5m for its eight trading
ships, or about $6.9m per ship. $62m of its $150m credit facility was
drawn. NAO is fully financed up to early 2020.
* NAO maintains industry leading cash breakeven levels.

Financial Information

On April 27, 2016, the Board declared a cash dividend of $0.08 per share for
1Q2016 to shareholders of record as of May 12, 2016. The payment date is on
or about May 27, 2016.

The Company's operating cash flow was -$2.2m in 1Q2016. In 4Q2015 and 1Q2015
operating cash flow was -$0.1m and $1.7m, respectively.

Net Income was -$6.3m in 1Q2016. In 4Q2015 and 1Q2015 Net Income was -$4.4m
and -$2.9m, respectively.

In our 2015 Annual Report on Form-20F we gave detailed information on the
cancellation of a contract for one of our ships which resulted in a cash
payment to us of $3.9m in mid-2015. On a quarterly basis this amount is
being booked as an income up to April 2018, or about $0.3m per quarter
depending upon currency movements - GBP/USD.

On May 21, 2015, NAO announced a share repurchase program allowing NAO to buy
back up to 2.5 million shares in the open market over the next two years. As
of this report NAO has repurchased 1,112,507 shares at an aggregate cost of
about $6.8m at about $6.07 per share. In addition, NAO purchased 1,571,749 of
its own shares in a private transaction on February 17, 2016 at a price of
$4.50 per share. NAO currently has a total of 20,747,114 shares outstanding.
Nordic American Tankers Limited is the largest shareholder of NAO, owning
about 29% of the shares in NAO.

The figures show that the 1Q2016 results were weaker compared with the
previous quarter.

As a matter of policy, the Company always focuses on maintaining a strong
balance sheet with low net debt. At the end of 1Q2016, net debt per NAO
vessel in operation was $6.9m. NAO has in place until early 2020 a
non-amortizing credit facility of $150 million, of which $62m has been drawn
as of March 31, 2016. Several service companies in our sector are in a
difficult financial position. Going forward, because of its strong financial
position and an attractive fleet, NAO sees commercial and strategic
opportunities.

We concentrate on keeping our vessel operating costs low, while always
maintaining our strong commitment to safe operations. As we expand our fleet,
we do not anticipate that our administrative costs will rise correspondingly.

For further details on our financial position for 1Q2016, 4Q2015 and 1Q2015,
please see later in this release. Our Annual Report 2015 on Form 20-F
contains a large amount of information about NAO. This report was filed with
the SEC March 23, 2016 and can be found on our web sitewww.nao.bm.

The Fleet

Our fleet is comprised of ten high-quality PSVs including one further
newbuilding to be delivered in June 2016. All our vessels operate in the UK
and in the Norwegian sectors of the North Sea. The vessels may operate in
either sector or elsewhere. The significant fuel efficiency, and
corresponding low emissions of our ships are features attractive for our
customers.

The Company's objective is to ensure spot or term employment for the fleet,
including for the newbuildings. The specifications of the Company's vessels
are by and large the same.

Strategy Going Forward

The main elements of NAO's strategy is based, are quarterly dividends, low
debt, low G&A costs, high liquidity in the stock and full transparency.

We work to continue our dividend policy with the objective to achieve a
competitively priced risk adjusted cash yield and a positive total
return[2]over time compared with that of other companies.

NAO is firmly committed to protecting its underlying earnings, dividend
potential and strong balance sheet.

We shall endeavor to safeguard and further strengthen the position for our
shareholders in a deliberate, predictable and transparent way.

We encourage prospective investors interested in the Offshore Supply Vessel
sector to consider buying shares in NAO.

* * * * *

Link to the graph:http://hugin.info/159489/R/2012102/745203.pdf
http://hugin.info/159489/R/2012102/745203.pdf
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 PSV market, as a result of changes in the general market conditions of
the oil and natural gas industry which influence charter hire rates and
vessel values, demand in platform supply vessels, our operating expenses,
including bunker prices, dry docking and insurance costs, governmental rules
and regulations or actions taken by regulatory authorities as well as
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes
due to accidents or political events, the availability of financing and
refinancing, vessel breakdowns and instances of off-hire and other important
factors described from time to time in the reports filed by the Company with
the Securities and Exchange Commission.

Contacts:

Tor-Øyvind Bjørkli, Chief Executive Officer
Nordic American Offshore Ltd.
Tel: +47 90 62 70 14

Jan H. A. Moller, Head of Investor Relations&Financial Manager
Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or +47 90 11 53 75

Gary J. Wolfe
Seward&Kissel LLP, New York, USA
Tel: +1 212 574 1223

Web-site:www.nao.bm
---------------------------------------[1]Operating cash flow is a non-GAAP measure. Please see later in this
announcement for a reconciliation of operating cash flow to income from
vessel operations.
[2]Total Return is defined as stock price plus dividends, assuming dividends
are reinvested in the stock

1st Quarter 2016 Result
http://hugin.info/159489/R/2012102/745203.pdf

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nordic American Offshore Ltd via Globenewswire

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