TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results
(unaudited) for the quarter ended March 31, 2023.
Q1 2023 SUMMARY RESULTSAs TEN
celebrates 30 years as a public entity, this quarter’s performance
highlights the Company’s ability to achieve record profits by
adapting its employment and investment policy to take advantage of
market circumstances.
As a result, in the first quarter of 2023, the
positive industry fundamentals together with the trade imbalances
the war in the Ukraine has created, continues to support a healthy
tanker market and allowed TEN - despite operating fewer vessels -
to generate gross revenues of $261 million, representing an
increase of 74% or $112 million from the same quarter in 2022.
Operating income in this year’s first quarter
climbed to $199 million which includes an $81 million capital gain
from the sale of six first generation MRs and two handysize product
tankers at values reflecting the strong demand for secondhand
tonnage.
The resulting net income, including the $81
million capital gain, totaled $177 million.
Fleet utilization in the first quarter of 2023
amounted to 96.4% reflecting efficient technical management and the
low number of scheduled dry dockings during the period.
Boosted by TEN’s flexible charters with upside
potential, the fleet’s average Time Charter Equivalent (TCE) more
than doubled to $41,882 per day from the 2022 first quarter
levels.
Earnings Before Interest Tax Depreciation &
Amortization (EBITDA) exceeded $236 million.
As a consequence, the positive cash flow
generated from the profitable contracts the vessels are employed
under resulted in the increase of the Company’s cash reserves, as
of March 31, 2023, to $476 million.
Bank debt in the first quarter of 2023 was $21
million lower from the year-end 2022 level at $1.39 billion.
Interest and finance costs in the first quarter
of 2023 reached $24 million, primarily due to higher underline
interest rates and a new loan for the acquisition of a VLCC in
November 2022.
Daily operating expenses per vessel during the
2023 first quarter were at $9,213 impacted by the seasonal
inventory buildup for the fleet and the inflationary pressures
evident in the world economy.
Depreciation and amortization marginally
increased by $1.8 million partly due to two vessels undergoing
dry-docking during the 2023 first quarter.
RECENT EVENTS – NEW CHARTERSTEN
continues to take advantage of prevailing solid charter rates and
attractive long-term employment and as a result, it has secured new
charters and extensions of 15 of its vessels (including two LNGs)
on both fixed and marked related rates. These recent fixtures raise
the total minimum contracted revenue of the fleet to $1.6
billion.
CORPORATE AFFAIRS - DIVIDENDThe
Company’s Board of Directors has approved the full and at par
redemption of TEN’s 3,517,061 Series D Cumulative Redeemable
Perpetual Preferred Shares currently outstanding with a par value
of $25.00 per share or $87,926,525 in total. The redemption, along
with accrued dividends, is scheduled for July 7, 2023. Through this
redemption, the Company will generate annual preferred dividend
savings of $7.7 million.
This latest action brings the total number of
preferred shares the Company has redeemed since 2019 to $188
million with total annual preferred dividend savings of
approximately $16.1 million.
In line with TEN’s semi-annual dividend
distribution policy and as previously announced, the Company will
distribute in 2023 an annual dividend of $0.60 per common share,
$0.30 of which will be paid on June 15, 2023, to shareholders of
record as of June 9, 2023, and $0.30 cents to be paid in December
2023.
This is a 140% increase from the $0.25 per
common share paid during 2022 and brings the total dividends paid
to common shareholders since TEN’s NYSE listing in 2002 to well in
excess of $500 million.
In addition, and subject to ongoing strong
freight market conditions, TEN’s Board of Directors could consider
an extra dividend to common shareholders for payment within 2023.
The amount will be determined at that point and details of the
relevant payment will be communicated through a separate public
announcement.
CORPORATE STRATEGYTEN is well
placed to be a prime beneficiary of the solid market fundamentals.
Its tried and tested mix of strong spot presence along with fixed
and market related long-term charters to major oil concerns
safeguards the Company’s development going forward.
In this environment, the accumulation of ample
cash reserves from vessel operations and asset divestments will
continue to fund the Company’s growth and capital allocation. As
secondhand prices remain healthy and demand for readily available
tonnage is on the rise, management will continue to explore
opportunities for the strategic sale of vessels whilst seeking
fleet expansion by increasing its footprint in dual-fuel vessels in
co-operation with its clients.
Strong liquidity and debt reduction, together
with dividend rewards for the shareholders are integral parts of
TEN’s policy.
“Our 30th year as a public company finds TEN in
record performance. With strong market fundamentals we expect to
continue reducing our debt obligations, further strengthen our
balance sheet and reward our shareholders with healthy dividend
distributions,” George Saroglou, Chief Operating Officer of TEN
stated.
TEN’s FLEET GROWTH PROGRAM
# |
Name |
Type |
Delivery |
Status |
Employment |
1 |
H5081 |
Aframax Dual Fuel |
Q1 2024* |
Under Construction |
Yes |
2 |
H5082 |
Aframax Dual Fuel |
Q1 2024* |
Under Construction |
Yes |
3 |
H5083 |
Aframax Dual Fuel |
Q3 2023* |
Under Construction |
Yes |
4 |
H5084 |
Aframax Dual Fuel |
Q4 2023* |
Under Construction |
Yes |
5 |
H3431 |
Suezmax – Scrubber Fitted |
Q2 2025* |
Under Construction |
Under Discussion |
6 |
H3432 |
Suezmax – Scrubber Fitted |
Q4 2025* |
Under Construction |
Under Discussion |
7 |
H2654 |
Suezmax Shuttle Tanker |
Q2 2025* |
Under Construction |
Yes |
8 |
H2655 |
Suezmax Shuttle Tanker |
Q2 2025* |
Under Construction |
Yes |
*Expected delivery as per shipbuilding contracts
(could be subject to change)
ABOUT TSAKOS
ENERGY NAVIGATIONTEN, founded in
1993 and celebrating this year 30 years as a public company, is one
of the first and most established public shipping companies in the
world. TEN’s diversified energy fleet currently consists of 67
double-hull vessels including four dual-fuel LNG powered Aframaxes,
two scrubber-fitted Suezmaxes and up to three DP2 Shuttle tankers
under construction constituting a mix of crude tankers, product
tankers and LNG carriers, totaling 8.4 million dwt.
Conference Call
Details:Participants should dial into the call 10 minutes
before the scheduled time using the following numbers: 877 405 1226
(US Toll-Free Dial In) or +1 201-689-7823 (US and Standard
International Dial In). Please quote “Tsakos” to the operator
and/or conference ID 13738977.Click here for additional participant
International Toll- Free numbers.
Alternatively, participants can register for the
call using the call me option for a faster connection to join the
conference call. You can enter your phone number and let the system
call you right away. Click here for the call me option.
Simultaneous Slides and Audio
Webcast:There will also be a live, and then archived,
webcast of the conference call and accompanying slides, available
through the Company’s website. To listen to the archived audio
file, visit our website www.tenn.gr and click on Webcasts &
Presentations under our Investor Relations page. Participants to
the live webcast should register on the website approximately 10
minutes prior to the start of the webcast.
ABOUT FORWARD-LOOKING
STATEMENTS Except for the historical information contained
herein, the matters discussed in this press release are
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those
predicted by such forward-looking statements. TEN undertakes no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or
otherwise.
For further information, please contact:
CompanyTsakos Energy
Navigation, Ltd. George SaroglouCOO+30210 94 07
710gsaroglou@tenn.gr
Investor Relations /
MediaCapital Link, Inc. Nicolas Bornozis Markella Kara+212
661 7566ten@capitallink.com
|
|
|
|
|
|
|
|
|
|
TSAKOS ENERGY NAVIGATION LIMITED AND
SUBSIDIARIES |
|
Selected Consolidated Financial and Other Data |
|
(In Thousands of U.S. Dollars, except share, per share and fleet
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
March 31 (unaudited) |
|
|
|
STATEMENT OF OPERATIONS DATA |
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
261,212 |
|
|
|
$ |
149,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
45,898 |
|
|
|
|
48,202 |
|
|
|
|
Charter hire expense |
|
6,792 |
|
|
|
|
8,615 |
|
|
|
|
Vessel operating expenses |
|
48,275 |
|
|
|
|
43,174 |
|
|
|
|
Depreciation and amortization |
|
35,139 |
|
|
|
|
33,349 |
|
|
|
|
General and administrative expenses |
|
7,157 |
|
|
|
|
6,795 |
|
|
|
|
Gains on sale of vessels |
|
(81,198 |
) |
|
|
|
- |
|
|
|
|
Total expenses |
|
62,063 |
|
|
|
|
140,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
199,149 |
|
|
|
|
9,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
(24,515 |
) |
|
|
|
(3,299 |
) |
|
|
|
Interest income |
|
2,763 |
|
|
|
|
190 |
|
|
|
|
Other, net |
|
61 |
|
|
|
|
(167 |
) |
|
|
|
Total other expenses, net |
|
(21,691 |
) |
|
|
|
(3,276 |
) |
|
|
|
Net income |
|
177,458 |
|
|
|
|
6,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to the noncontrolling interest |
|
(908 |
) |
|
|
|
(773 |
) |
|
|
|
Net income attributable to Tsakos Energy Navigation
Limited |
$ |
176,550 |
|
|
|
$ |
5,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of preferred dividends |
|
(8,673 |
) |
|
|
|
(8,673 |
) |
|
|
|
Net income (loss) attributable to common stockholders of
Tsakos Energy Navigation Limited |
$ |
167,877 |
|
|
|
$ |
(3,153 |
) |
|
|
|
Earnings (Loss) per share, basic and diluted |
$ |
5.69 |
|
|
|
$ |
(0.12 |
) |
|
|
|
Weighted average number of common shares, basic and diluted |
|
29,505,603 |
|
|
|
|
25,571,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
March 31 |
|
|
|
December 31 |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
Cash |
|
475,682 |
|
|
|
|
309,439 |
|
|
|
|
Other assets |
|
278,869 |
|
|
|
|
371,911 |
|
|
|
|
Vessels, net |
|
2,570,908 |
|
|
|
|
2,580,575 |
|
|
|
|
Advances for vessels under construction |
|
98,165 |
|
|
|
|
46,650 |
|
|
|
|
Total assets |
$ |
3,423,624 |
|
|
|
$ |
3,308,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt and other financial liabilities, net of deferred finance
costs |
|
1,555,121 |
|
|
|
|
1,577,877 |
|
|
|
|
Other liabilities |
|
197,693 |
|
|
|
|
207,779 |
|
|
|
|
Stockholders' equity |
|
1,670,810 |
|
|
|
|
1,522,919 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,423,624 |
|
|
|
$ |
3,308,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
OTHER FINANCIAL DATA |
|
March 31 |
|
|
|
|
|
2023 |
|
|
|
|
2022 |
|
|
|
|
Net cash provided by operating activities |
$ |
115,006 |
|
|
|
$ |
24,284 |
|
|
|
|
Net cash provided by (used in) investing activities |
$ |
86,323 |
|
|
|
$ |
(158,197 |
) |
|
|
|
Net cash (used in) provided by financing activities |
$ |
(35,086 |
) |
|
|
$ |
149,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE per ship per day |
$ |
41,882 |
|
|
|
$ |
19,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses per ship per day |
$ |
9,213 |
|
|
|
$ |
7,745 |
|
|
|
|
Vessel overhead costs per ship per day |
$ |
1,279 |
|
|
|
$ |
1,146 |
|
|
|
|
|
|
10,492 |
|
|
|
|
8,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels during period |
|
62.2 |
|
|
|
|
65.9 |
|
|
|
|
Number of vessels at end of period |
|
58.0 |
|
|
|
|
66.0 |
|
|
|
|
Average age of fleet at end of period |
Years |
10.2 |
|
|
|
|
10.3 |
|
|
|
|
Dwt at end of period (in thousands) |
|
7,178 |
|
|
|
|
7,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter employment - fixed rate |
Days |
2,277 |
|
|
|
|
2,026 |
|
|
|
|
Time charter and pool employment - variable rate |
Days |
1,801 |
|
|
|
|
1,798 |
|
|
|
|
Period employment coa at market rates |
Days |
61 |
|
|
|
|
90 |
|
|
|
|
Spot voyage employment at market rates |
Days |
1,252 |
|
|
|
|
1,617 |
|
|
|
|
Total operating days |
|
5,391 |
|
|
|
|
5,531 |
|
|
|
|
Total available days |
|
5,594 |
|
|
|
|
5,929 |
|
|
|
|
Utilization |
|
96.4 |
% |
|
|
|
93.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
|
|
Reconciliation of Net income to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
March 31 |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Tsakos Energy Navigation Limited |
$ |
176,550 |
|
|
|
$ |
5,520 |
|
|
|
|
Depreciation and amortization |
|
35,139 |
|
|
|
|
33,349 |
|
|
|
|
Interest Expense |
|
24,515 |
|
|
|
|
3,299 |
|
|
|
|
Gains on sale of vessels |
|
(81,198 |
) |
|
|
|
- |
|
|
|
|
Adjusted EBITDA |
$ |
155,006 |
|
|
|
$ |
42,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However,
management believes that certain non-GAAP measures used within the
financial community may provide users of this financial information
additional meaningful comparisons between current results and
results in prior operating periods as well as comparisons between
the performance of Shipping Companies. Management also uses these
non-GAAP financial measures in making financial, operating and
planning decisions and in evaluating the Company’s performance. We
are using the following Non-GAAP measures: |
|
|
(i) TCE which represents voyage revenue less voyage expenses is
divided by the number of operating days less 164 days lost for the
first quarter of 2023 as a result of calculating revenue on a
loading to discharge basis, compared to 204 days lost for the first
quarter of 2022. |
|
|
(ii) Vessel overhead costs are General & Administrative
expenses, which also include Management fees, Stock compensation
expense and Management incentive award. |
|
|
(iii) Operating expenses per ship per day which exclude Management
fees, General & Administrative expenses, Stock compensation
expense and Management incentive award. |
|
|
(iv) Adjusted EBITDA. See above for reconciliation to net
income. |
|
|
Non-GAAP financial measures should be viewed in addition to and not
as an alternative for, the Company’s reported results prepared in
accordance with GAAP. |
|
|
The Company does not incur corporation tax. |
|
|
|
|
|
|
|
|
|
|
|
Tsakos Energy Navigation (NYSE:TNP)
Historical Stock Chart
From Apr 2024 to May 2024
Tsakos Energy Navigation (NYSE:TNP)
Historical Stock Chart
From May 2023 to May 2024