Nordic American Tankers Limited (NAT) said it has agreed to acquire two Far East built Suezmax tankers at an average age of five years for a total of US$122m.

The vessels are expected to be delivered in September and October 2015, respectively.

The company said it does not plan to issue equity to finance the two vessels.

"The acquisition represents a natural step in the further development of Nordic American. By adding two more ships, we increase the dividend capacity and earnings potential. We believe that our strong balance sheet, the dividend policy, well defined and transparent operating model provide NAT with a solid competitive position," NAT said in a statement.