ОРЕАНДА-НОВОСТИ. 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 flow1 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.

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 site www.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 return2 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.