TEN, Ltd (TEN) (NYSE: TEN) (the “Company”) today reported results
(unaudited) for the six months and the second quarter ended June
30, 2024.
FIRST HALF 2024 SUMMARY
RESULTSIn the first half of 2024, TEN’s fleet generated
$416 million in gross revenues and $179 million in operating
profits which included capital gains of $49 million.
The resulting net income for the first half of
2024 reached $130.4 million or $3.96 per share.
The average Time Charter Equivalent (TCE) per
ship per day for the 2024 first half was a solid $33,830.
Adjusted EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) for the first half of 2024
reached $214 million.
Depreciation and amortization combined were at
$77 million, an increase of $6.6 million from last year’s first
half.
Vessel operating expenses experienced a modest
increase to $98 million, reflecting the higher number of vessels
and larger vessel sizes in the fleet.
Interest and finance costs for the 2024 first
six months were at $55.2 million, as a result of new loans for the
acquisition of five modern vessels during that period as well as
the delivery of four modern dual-fuel LNG powered new-buildings
during the fourth quarter of 2023 and the first quarter of
2024.
Total operating expenses per ship per day,
despite persisting inflationary pressures, remained almost
identical to 2023 first half levels at $9,367.
At the end of June 2024, TEN’s cash position
reached $476 million, almost $100 million higher from year-end
2023.
Q2 2024 SUMMARY RESULTSWith
three vessels undergoing scheduled dry dockings and special
surveys, fleet utilization dropped to 92% and gross revenues
reached $214 million.
Operating income, which included $32 million of
capital gains in the second quarter of 2024 were at $103 million
resulted in a net income of $76.4 million for the same period.
Average TCE per ship per day in the 2024 second
quarter, which was impacted by vessel repositionings, reached
$34,235 leading to an adjusted EBITDA of $113 million for the same
period.
Fleet operating expenses were modestly higher
from the 2023 second quarter levels, reaching $49.7 million in the
2024 second quarter again reflecting the larger sizes of vessels in
the fleet. Despite that, and largely due to efficient vessel
management, operating expenses per ship per day for the second
quarter of 2024 dropped to $9,347 from $9,492 in the 2023
equivalent period.
Depreciation and amortization during the second
quarter of 2024 was in line with the increased number of vessels in
the fleet at $39.5 million.
Interest and finance costs for the second
quarter of 2024 reached $30.0 million reflecting the aforementioned
loans and continued elevated global interest rates.
SUBSEQUENT EVENTS TEN, during
the summer of 2024, triggered the repurchase of two sister vessels,
the 2006-built suezmaxes Alaska and Archangel, by exercising,
in-the-money, purchase options. With the termination of this
leasing arrangement, TEN generated approximately $5.0 million in
forward hire savings. These two vessels continue to operate in the
fleet, unencumbered, and are currently on charter to significant
oil concerns at attractive rates.
NAVAL ACADEMYOn 7th September
2024, TST, our technical managers, inaugurated a non-profit private
naval academy on the seafaring island of Chios. This will result to
more than 100 students graduating on an annual basis with an
exceptionally high standard, technologically advanced and
environmentally friendly workforce for TEN’s ever-growing, modern,
innovative fleet going forward. We expect this to provide us with a
competitive advantage in running safe and efficient vessels for our
clients.
CORPORATE AFFAIRS - DIVIDENDTEN
is pleased to announce that it will distribute to common
shareholders a second semi-annual dividend of $0.90 per share
following the $0.60 per share paid in July, bringing the total
dividend for 2024 operations to $1.50, representing a 50% increase
over the amount distributed for 2023 operations. Dividend date to
be announced.
Since the Company’s NYSE listing in 2002, TEN
has consistently demonstrated its commitment to enhancing
shareholder value, having distributed well over $820 million in
common and preferred share dividends.
CORPORATE STRATEGYThe
underlying market fundamentals continue to be favorable as the
newbuilding orderbook is well in check, spurred by ongoing debates
on alternative fuels, and global oil demand on the increase. The
various geopolitical events around the globe continue unabated with
freight rates and asset prices on solid ground. The recent
incidents in the Red Sea have also added an additional layer of
complexity to the geopolitical landscape, causing most vessels,
particularly product tankers, enroute to Europe, to divert their
trip via the Cape of Good Hope. Such diversions have caused an
inevitable increase in ton-mile demand and further reduction in
vessel supply, assisting charter rates to remain elevated.
On top of this, the recent announcement from
OPEC+ to unwind approximately 2.2 million bpd of voluntary
production cuts is expected to provide an added boost to seaborne
trade and, ultimately, tanker demand.
In this environment, TEN has embarked on a
dynamic growth and renewal program and has acquired/contracted 21
fuel efficient environmentally friendlier vessels to adhere to the
increasing transportation needs of its blue-chip clientele.
With a solid balance sheet, $2.0 billion in
minimum contracted revenues and a fleet generating healthy cash
flows, TEN continues to expand in the sectors it operates. The
increasing appetite for longer-term contracts from new and
particularly existing clients is being effectively met by the
Company’s current vessels in the water and those under
construction.
“We are pleased to report another profitable
quarter which despite being impacted by various repositioning
voyages and three drydockings, allowed TEN to reward its
shareholders with a dividend payment 50% higher than the one paid
for 2023 operations,” Mr. George Saroglou, President & COO of
TEN, commented. “With a fleet continuing to reap the rewards of the
solid tanker market and receiving encouraging signs from our
clients for attractive long-term business, we remain confident that
we will continue to generate healthy cash flows and reward
shareholders in order to elevate TEN in the forefront of their
investment consideration,” Mr. Saroglou concluded.
TEN’s CURRENT NEWBUILDING
PROGRAM
|
# |
Name |
Type |
Expected Delivery |
Status |
Employment |
|
1 |
Athens 04 |
DP2 Shuttle Tanker |
Q2 2025 |
Under Construction |
Yes |
|
2 |
Paris 24 |
DP2 Shuttle Tanker |
Q2 2025 |
Under Construction |
Yes |
|
3 |
Anfield |
DP2 Shuttle Tanker |
Q3 2026 |
Under Construction |
Yes |
|
4 |
TBN |
Suezmax – Scrubber Fitted |
Q2 2025 |
Under Construction |
Yes |
|
5 |
TBN |
Suezmax – Scrubber Fitted |
Q4 2025 |
Under Construction |
Under Discussion |
|
6 |
TBN |
MR – Scrubber Fitted |
Q1 2026 |
Under Construction |
Under Discussion |
|
7 |
TBN |
MR – Scrubber Fitted |
Q1 2026 |
Under Construction |
Under Discussion |
|
8 |
TBN |
Panamax LR1 |
Q3 2027 |
Under Construction |
Under Discussion |
|
9 |
TBN |
Panamax LR1 |
Q3 2028 |
Under Construction |
Under Discussion |
|
10 |
TBN |
Panamax LR1 |
Q1 2028 |
Under Construction |
Under Discussion |
|
11 |
TBN |
Panamax LR1 |
Q3 2028 |
Under Construction |
Under Discussion |
|
12 |
TBN |
Panamax LR1 |
Q3 2028 |
Under Construction |
Under Discussion |
| |
|
|
|
|
|
ABOUT TSAKOS ENERGY
NAVIGATIONTEN, founded in 1993 and celebrating this year
31-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 74 vessels,
including three DP2 shuttle tankers, two scrubber-fitted suezmax
vessels, two scrubber-fitted MR product tankers and five
scrubber-fitted LR1 tankers under construction, consisting of a mix
of crude tankers, product tankers and LNG carries, totaling 8.9
million dwt.
ABOUT FORWARD-LOOKING
STATEMENTSExcept 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.
Conference Call Details:
As announced previously, today, Wednesday,
September 11, 2024 at 10:00 a.m. Eastern Time, TEN will host a
conference call to review the results as well as management's
outlook for the business. The call, which will be hosted by TEN's
senior management, may contain information beyond what is included
in the earnings press release. 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 13748715. Click here for
additional participant International Toll-Free access 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.
For further information, please contact:
CompanyTsakos Energy Navigation Ltd.George
SaroglouPresident & COO+30210 94 07 710gsaroglou@tenn.gr
Investor Relations / MediaCapital Link,
Inc.Nicolas BornozisMarkella 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 |
|
|
Six months
ended |
| |
|
June 30 (unaudited) |
|
|
June 30 (unaudited) |
|
STATEMENT OF OPERATIONS DATA |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
214,055 |
|
$ |
221,454 |
|
$ |
415,644 |
|
$ |
482,667 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Voyage
expenses |
|
41,403 |
|
|
38,892 |
|
|
83,423 |
|
|
84,789 |
| Charter hire
expense |
|
5,095 |
|
|
5,731 |
|
|
11,108 |
|
|
12,522 |
| Vessel
operating expenses |
|
49,704 |
|
|
46,669 |
|
|
98,328 |
|
|
94,943 |
| Depreciation
and amortization |
|
39,494 |
|
|
35,264 |
|
|
77,020 |
|
|
70,403 |
| General and
administrative expenses |
|
7,904 |
|
|
12,336 |
|
|
15,230 |
|
|
19,493 |
| Gain on sale
of vessels |
|
(32,495) |
|
|
- |
|
|
(48,662) |
|
|
(81,198) |
| Total
expenses |
|
111,105 |
|
|
138,892 |
|
|
236,447 |
|
|
200,952 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
102,950 |
|
|
82,562 |
|
|
179,197 |
|
|
281,715 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest and
finance costs, net |
|
(30,053) |
|
|
(24,334) |
|
|
(55,198) |
|
|
(48,848) |
| Interest
income |
|
4,687 |
|
|
4,125 |
|
|
7,935 |
|
|
6,888 |
| Other,
net |
|
4 |
|
|
(241) |
|
|
75 |
|
|
(180) |
| Total other
expenses, net |
|
(25,362) |
|
|
(20,450) |
|
|
(47,188) |
|
|
(42,140) |
|
Net income |
|
77,588 |
|
|
62,112 |
|
|
132,009 |
|
|
239,575 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to the noncontrolling interest |
|
(1,202) |
|
|
(1,471) |
|
|
(1,587) |
|
|
(2,379) |
| Net
income attributable to Tsakos Energy Navigation
Limited |
$ |
76,386 |
|
$ |
60,641 |
|
$ |
130,422 |
|
$ |
237,196 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Effect of
preferred dividends |
|
(6,750) |
|
|
(8,673) |
|
|
(13,500) |
|
|
(17,346) |
| Deemed
dividend on Series D preferred shares |
|
- |
|
|
(3,256) |
|
|
- |
|
|
(3,256) |
| Net
income attributable to common stockholders of Tsakos Energy
Navigation Limited |
$ |
69,636 |
|
$ |
48,712 |
|
$ |
116,922 |
|
$ |
216,594 |
| Earnings per
share, basic and diluted |
$ |
2.36 |
|
$ |
1.65 |
|
$ |
3.96 |
|
$ |
7.34 |
| Weighted
average number of common shares, basic and diluted |
|
29,505,603 |
|
|
29,505,603 |
|
|
29,505,603 |
|
|
29,505,603 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
June 30 |
|
|
December 31 |
|
|
|
|
|
|
| |
|
2024 |
|
|
2023 |
|
|
|
|
|
|
| Cash |
|
476,426 |
|
|
376,694 |
|
|
|
|
|
|
| Other
assets |
|
240,513 |
|
|
236,800 |
|
|
|
|
|
|
| Vessels,
net |
|
2,930,160 |
|
|
2,600,021 |
|
|
|
|
|
|
| Advances for
vessels under construction |
|
124,686 |
|
|
150,575 |
|
|
|
|
|
|
|
Total assets |
$ |
3,771,785 |
|
$ |
3,364,090 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Debt and
other financial liabilities, net of deferred finance costs |
|
1,781,379 |
|
|
1,562,657 |
|
|
|
|
|
|
| Other
liabilities |
|
238,946 |
|
|
148,786 |
|
|
|
|
|
|
|
Stockholders' equity |
|
1,751,460 |
|
|
1,652,647 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,771,785 |
|
$ |
3,364,090 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months
ended |
|
|
Six months
ended |
|
OTHER FINANCIAL DATA |
|
June
30 |
|
|
June
30 |
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| Net cash
provided by operating activities |
$ |
84,651 |
|
$ |
143,496 |
|
$ |
160,222 |
|
$ |
258,502 |
| Net cash
(used in) provided by investing activities |
$ |
(104,991) |
|
$ |
(49,298) |
|
$ |
(302,007) |
|
$ |
37,025 |
| Net cash
provided by (used in) financing activities |
$ |
112,772 |
|
$ |
(35,786) |
|
$ |
201,517 |
|
$ |
(70,872) |
| |
|
|
|
|
|
|
|
|
|
|
|
| TCE per ship
per day |
$ |
34,235 |
|
$ |
38,353 |
|
$ |
33,830 |
|
$ |
40,182 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses per ship per day |
$ |
9,347 |
|
$ |
9,492 |
|
$ |
9,367 |
|
$ |
9,349 |
| Vessel
overhead costs per ship per day |
$ |
1,392 |
|
$ |
2,337 |
|
$ |
1,358 |
|
$ |
1,793 |
| |
|
10,739 |
|
|
11,829 |
|
|
10,725 |
|
|
11,142 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Average
number of vessels during period |
|
62.4 |
|
|
58.0 |
|
|
61.6 |
|
|
60.1 |
| Number of
vessels at end of period |
|
62.0 |
|
|
58.0 |
|
|
62.0 |
|
|
58.0 |
| Average age
of fleet at end of period |
Years |
9.7 |
|
|
10.5 |
|
|
9.7 |
|
|
10.5 |
| Dwt at end
of period (in thousands) |
|
7,612 |
|
|
7,178 |
|
|
7,612 |
|
|
7,178 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Time charter
employment - fixed rate |
Days |
2,855 |
|
|
2,308 |
|
|
5,485 |
|
|
4,585 |
| Time charter
and pool employment - variable rate |
Days |
1,361 |
|
|
1,554 |
|
|
2,753 |
|
|
3,355 |
| Period
employment coa at market rates |
Days |
0 |
|
|
86 |
|
|
0 |
|
|
147 |
| Spot voyage
employment at market rates |
Days |
1,033 |
|
|
1,024 |
|
|
2,068 |
|
|
2,276 |
|
Total operating days |
|
5,249 |
|
|
4,972 |
|
|
10,306 |
|
|
10,363 |
|
Total available days |
|
5,678 |
|
|
5,278 |
|
|
11,217 |
|
|
10,872 |
|
Utilization |
|
92.4% |
|
|
94.2% |
|
|
91.9% |
|
|
95.3% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP
Measures |
|
Reconciliation of Net income to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months
ended |
|
|
Six months
ended |
| |
|
June
30 |
|
|
June
30 |
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income
attributable to Tsakos Energy Navigation Limited |
$ |
76,386 |
|
$ |
60,641 |
|
$ |
130,422 |
|
$ |
237,196 |
| Depreciation
and amortization |
|
39,494 |
|
|
35,264 |
|
|
77,020 |
|
|
70,403 |
| Interest
Expense |
|
30,053 |
|
|
24,334 |
|
|
55,198 |
|
|
48,848 |
| Gain on sale
of vessels |
|
(32,495) |
|
|
- |
|
|
(48,662) |
|
|
(81,198) |
| Adjusted
EBITDA |
$ |
113,438 |
|
$ |
120,239 |
|
$ |
213,978 |
|
$ |
275,249 |
| |
|
|
|
|
|
|
|
|
|
|
|
| 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 99 days lost for the second quarter
and 270 days for the first half of 2024 and 117 days for the prior
year quarter of 2023 and 281 days for first half of 2023,
respectively, as a result of calculating revenue on a loading to
discharge basis. |
| (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. |
| (v) Cash includes
Restricted cash and Time deposits under and over 90
days. |
| 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:TEN)
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Tsakos Energy Navigation (NYSE:TEN)
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