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2016-02-04

Nordic American Offshore Ltd: Nordic American Offshore Ltd. (NYSE:NAO) 4Q2015 Dividend and Earnings Report

Link to the complete 4th Quarter 2015 report:http://hugin.info/159489/R/1983692/727076.pdf
http://hugin.info/159489/R/1983692/727076.pdf

Hamilton, Bermuda, February 4, 2016.

Nordic American Offshore Ltd. ("NAO" or "the Company") became stock listed on
the New York Stock Exchange (NYSE) on June 12, 2014. Our ship management
partners, board and staff have a wealth of experience in the offshore and
Platform Supply Vessels (PSVs) business dating back several decades. In a
challenging freight market for PSVs, the operating cash flow[1]for NAO was
marginally negative (-$0.1m) for 4Q2015. The technical and operational
quality of our ships is unsurpassed, as evidenced by their performance in the
recent hurricane "Tor" in the North Sea. We have succeeded in expanding our
customer base considerably. In this light, NAO should be differentiated from
other PSV companies.

The main elements of the strategy of Nordic American Offshore Ltd. are based
on the same fundamentals as those of Nordic American Tankers Limited (NAT).
Quarterly dividends, low debt and full transparency are among those
fundamentals.

In the challenging market for 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. Two more are under construction in Norway for
delivery in April and June 2016. Our vessels have very low fuel consumption,
resulting in low emissions and producing attractive transportation economics.

As announced on January 25, 2016, NAO has declared a dividend of $0.12 per
share for 4Q2015. The record date is February 5, 2016 and the payment of
dividend is expected to take place about February 22, 2016. Since its
original establishment in late 2013, NAO has paid dividends for 8 consecutive
quarters, totalling $2.41 per share, including the dividend to be paid about
February 22, 2016. In June 2014, NAO relocated from the Oslo OTC (Over the
Counter) exchange to the New York Stock Exchange (NYSE).

The Company's PSVs are currently employed in the North Sea. The fall of oil
prices since 3Q2014 is affecting service providers to the oil industry. In
the case of PSVs, demand from new projects has been reduced, while demand
from existing production facilities has not been affected as much.

Key points to consider:

* Operating cash flow per share has been: -$0.00 for 4Q2015, $0.04 for 3Q2015
and $0.11 for 4Q2014.
* Earnings per share (EPS) has been: -$0.19 for 4Q2015, -$0.13 for 3Q2015 and
-$0.07 for 4Q2014. EPS does not take into account risk, and as such, it is
a deceptive measure.
* NAO had at the end of 4Q2015 totalnet debtof $41.9m for its eight trading
ships, or about $5.2m per ship. $47m of its $150m credit facility was
drawn. Including the recently agreed credit facility of $150m, NAO is fully
financed up to early 2020.
* The USD cost price of our newbuildings was at the time of order equivalent
to $44m. The vessels were ordered in Norwegian Kroner (NOK). As a result of
a stronger dollar the cost of the two vessels delivered in January 2015 was
$36m each. Assuming the current relationship between the USD and NOK is
maintained, the average cost of the 2016 newbuildings will be about $34m
per vessel.
* In conjunction with the relocation from Oslo to NYSE, NAO completed an IPO
on the NYSE on June 12, 2014 which strengthened NAO's equity by $100m to
finance a significant part of the vessels which were delivered in January
2015 and the newbuildings to be delivered in 2016.
* NAO maintains industry leading breakeven cash flow levels. All our PSVs are
working with high utilization rates.

Financial Information
On January 25, 2016, the Board declared a cash dividend of $0.12 per share for
4Q2015 to shareholders of record as of February 5, 2016. The payment date is
on or about February 22, 2016.

The Company's operating cash flow was -$0.1m in 4Q2015. In 3Q2015 and 4Q2014
operating cash flow was $1.0m and $2.6m, respectively.

Net Income was -$4.4m in 4Q2015. In 3Q2015 and 4Q2014 Net Income was -$3.1m
and -$1.7m, respectively.

For the two January 2015 built vessels there was a currency gain of about $8m
for each ship because of the strong US dollar. Currency wise, we have covered
forward one of the 2016 newbuildings at a total price of about $35m.

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. As of this report NAO has
repurchased 1,094,136 shares at an aggregate cost of about $6.7m at about
$6.09 per share. NAO currently has a total of 22,337,234 shares outstanding.

The figures show that the 4Q2015 results were somewhat weaker compared with
the previous quarter. While activity in the North Sea has been impacted by
the decrease in the oil price, the number of available vessels resulted in an
unusually weak summer market.

As a matter of policy, the Company always focuses on maintaining a strong
balance sheet with low net debt. At the end of 4Q2015, net debt per NAO
vessel in operation was $5.2m. NAO has in place until early 2020 a
non-amortizing credit facility of $150 million, of which $47m has been drawn
as of December 31, 2015. Several service companies in our sector are in a
difficult financial position. Going forward, because of its strong financial
position, NAO sees commercial opportunities in this environment.

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 4Q2015, 3Q2015 and 4Q2014,
please see later in this
release.

The Fleet
Our fleet is comprised of ten high-quality PSVs including two newbuildings.
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 low emissions of our ships and other features are
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 on which NAO's strategy is based, are the same fundamentals
as those of Nordic American Tankers Limited, including quarterly dividends,
low debt, low G&A costs, high liquidity in the stock and full transparency.

We believe that our dividend policy will continue to enable us 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.

Our Company is well positioned for the future. 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/1983692/727076.pdf
http://hugin.info/159489/R/1983692/727076.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 st...

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