TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results
(unaudited) for the six months and second quarter ended June 30,
2023.
SIX MONTHS 2023 SUMMARY
RESULTSWith tanker markets remaining strong, primarily
spurred by favorable supply and demand fundamentals and favorable
trade dislocations caused by the war in the Ukraine continuing and
with no signs of abating, TEN, in the first half of 2023, generated
voyage revenues of $482.7 million from $366.4 million in the
equivalent period of 2022 or 32% higher.
Operating income more than quadrupled to $281.7
million, which included a gain on vessel sales of $81.2 million
after the timely sale of eight older MR and handysize product
tankers in the first quarter of 2023.
Reflecting the good momentum in the tanker
markets, which continues to positively impact both operations and
asset values, net income experienced a near fivefold increase from
the 2022 first half level of $51.7 million and reached $237.2
million.
On the back of enhanced transportation needs for
long-haul trades and with a still considerable portion of the fleet
operating in spot trades, fleet utilization in the first six months
of 2023 amounted to a strong 95.3%, despite six vessels, including
two DP2 shuttle tankers, undergoing dry-dockings during the
period.
The average Time Charter Equivalent (TCE) in the
2023 first six-month period reached $40,182 per vessel per day, 64%
higher from $24,529 in the 2022 first half.
Adjusted Earnings Before Interest Tax
Depreciation & Amortization (EBITDA) more than doubled to
$275.2 million from $133.3 million in the 2022 first six months, a
107% increase.
Positive fleet performance and the free cash
generated by vessel sales, resulted in TEN’s cash reserves
increasing to $534.1 million as at June 30, 2023.
Bank debt during the first six months of the
year continued its downward trajectory and settled at $1.38 billion
at June 30, 2023, $35 million lower from the December 31, 2022
level.
Interest and finance costs in the first half of
2023 reached $48.8 million, impacted by continuing higher global
interest rates and the new loans for the acquisition of the DP2
shuttle tanker Porto and the VLCC Dias I in the second half of
2022. This cost was mitigated with interest income for the first
six months of 2023 increasing to about $7.0 million from $0.4
million in the same period of 2022.
Daily operating expenses per vessel during the
2023 first six months averaged $9,349.
Depreciation and amortization costs combined
were at $70.4 million compared to $67.5 million in the 2022 first
half period driven by prior year dry-dockings.
Q2 2023 SUMMARY RESULTS TEN,
whilst operating on average seven vessels less than in the 2022
second quarter, generated $4.8 million more in voyage revenues
compared to last year’s same quarter and reached $221.4
million.
The resulting operating income climbed to $82.6
million, $25.2 million higher than the 2022 equivalent quarter. Net
income experienced a 31% increase to reach $60.6 million from $46.2
million in the 2022 second quarter which also included a small $0.3
million gain on vessels sale.
Adjusted EBITDA for the second quarter of 2023
recorded a 32% increase from the 2022 equivalent period and settled
at $120.2 million.
Fleet utilization, despite a number of scheduled
dry-dockings, remained high at 94.2% compared to 93.6% in the
second quarter of 2022.
Daily average TCE per vessel, following the
market momentum, increased to $38,353 from $29,278, 31% higher from
the 2022 second quarter, while operating expenses were contained to
$9,492 per vessel per day.
Overall, voyage expenses during the 2023 second
quarter fell approximately 38% from the 2022 second quarter due to
lower bunker costs while total vessel operating expenses remained
at about the same levels as the 2022 second quarter, as did
depreciation and amortization.
Interest and finance costs in the second quarter
of 2023, continuing to be impacted by high interest rates globally,
settled at $24.3 million, which was also mitigated by interest
income reaching $4.1 million from just $0.2 million in the same
period of 2022.
SUBSEQUENT EVENTSIn the third
quarter of 2023 the Company redeemed in full $88.0 million of its
publicly traded 8.75% Series D Cumulative Redeemable Perpetual
Preferred Shares and $19.4 million of a privately placed perpetual
preferred instrument, carrying a coupon of 7.50%, for a total of
$107.4 million with annual cash savings of over $9.0 million.
Inclusive of the prior redemptions of Series B and Series C
Perpetual Preferred Shares and privately placed preferred
instruments, the Company has, in aggregate, redeemed a total of
$211 million of preferred shares with annual cash savings of about
$18.0 million.
New and extended time charter business at
renewed rates increases revenue backlog to over $1.5 billion -
Average contract duration close to three years.
In August 2023, the Company signed newbuilding
contracts for the construction of two scrubber-fitted MR product
tankers with expected delivery in the first quarter of 2026.
DIVIDEND – COMMON SHARES -
OTHERAs previously announced, TEN will distribute to
common shareholders, a second semi-annual dividend of $0.30 per
share in December 2023 following the $0.30 per share payment in
June 2023 which together with an additional special dividend of
$0.40 per common share, increase total distributions for this year
to $1.00, bringing total common stock dividend payments for 2023 to
approximately $30 million.
Payment for the special dividend is scheduled
for October 26, 2023, to shareholders of record on October 20,
2023.
Inclusive of this upcoming payment, TEN has
provided common shareholders $528 million in dividends, equating to
over $25 million per annum, since its 2002 NYSE listing.
The Company’s authority to issue common stock
under its last At-The-Market program has expired and has not been
renewed and therefore it is no longer available for use.
CORPORATE STRATEGY &
OUTLOOKWhile management took advantage of the historical
high asset prices and divested eight of its older product tankers
at significant profits this year it has used its healthy cash
reserves to pay increased amounts of common stock dividends and
redeem preferred shares, aggregating to $138 million, as well as
invest in green energy vessels.
Along with sound cash balances, bank debt
reduction and further green vessel investments, capital allocation
shall continue to be the cornerstone of TEN’s balance sheet
management.
“Taking advantage of the positive environment in
the tanker market the Company has timely monetized a big part of
its first-generation tankers and has reinvested the proceeds for
new and environmentally friendly vessels, common share dividend
distributions and a significant reduction of its preferred shares,”
Mr. George Saroglou, President and COO of TEN commented. “The
recent appetite from our major clients for accretive long-term
business, particularly in the LNG and tanker segments, has given us
the comfort to secure over $1.5 billion in forward revenues and
ensure continuity in providing healthy returns and increased
dividends to our shareholders,” Mr. Saroglou concluded.
ABOUT TENTEN, 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 68
double-hull vessels, including four dual-fuel LNG powered aframax
vessels, two DP2 shuttle tankers, two scrubber-fitted suezmax
vessels and two scrubber-fitted MR product tankers under
construction, constituting a mix of crude tankers, product tankers
and LNG carriers, totaling 8.4 million dwt.
Conference Call Details:As
announced previously, today, Thursday, September 7, 2023 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 13740947. 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.
TEN’s CURRENT GROWTH PROGRAM
# |
Name |
Type |
Delivery |
Status |
Employment |
1 |
TBN |
Aframax Dual Fuel |
Q3 2023* |
Under Construction |
Yes |
2 |
TBN |
Aframax Dual Fuel |
Q4 2023* |
Under Construction |
Yes |
3 |
TBN |
Aframax Dual Fuel |
Q1 2024* |
Under Construction |
Yes |
4 |
TBN |
Aframax Dual Fuel |
Q1 2024* |
Under Construction |
Yes |
5 |
TBN |
DP2 Shuttle Tanker |
Q2 2025* |
Under Construction |
Yes |
6 |
TBN |
DP2 Shuttle Tanker |
Q2 2025* |
Under Construction |
Yes |
7 |
TBN |
Suezmax – Scrubber Fitted |
Q2 2025* |
Under Construction |
Under Discussion |
8 |
TBN |
Suezmax – Scrubber Fitted |
Q4 2025* |
Under Construction |
Under Discussion |
9 |
TBN |
MR – Scrubber Fitted |
Q1 2026* |
Under Construction |
Under Discussion |
10 |
TBN |
MR – Scrubber Fitted |
Q1 2026* |
Under Construction |
Under Discussion |
*Expected delivery as per shipbuilding
contracts
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
|
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|
|
|
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 |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
221,454 |
|
|
|
$ |
216,699 |
|
|
$ |
482,667 |
|
|
|
$ |
366,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
38,892 |
|
|
|
|
62,738 |
|
|
|
84,789 |
|
|
|
|
110,941 |
|
|
Charter hire expense |
|
5,731 |
|
|
|
|
8,711 |
|
|
|
12,522 |
|
|
|
|
17,326 |
|
|
Vessel operating expenses |
|
46,669 |
|
|
|
|
46,630 |
|
|
|
94,943 |
|
|
|
|
89,804 |
|
|
Depreciation and amortization |
|
35,264 |
|
|
|
|
34,168 |
|
|
|
70,403 |
|
|
|
|
67,518 |
|
|
General and administrative expenses |
|
12,336 |
|
|
|
|
7,383 |
|
|
|
19,493 |
|
|
|
|
14,177 |
|
|
Gains on sale of vessels |
|
- |
|
|
|
|
(299 |
) |
|
|
(81,198 |
) |
|
|
|
(299 |
) |
|
Total expenses |
|
138,892 |
|
|
|
|
159,331 |
|
|
|
200,952 |
|
|
|
|
299,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
82,562 |
|
|
|
|
57,368 |
|
|
|
281,715 |
|
|
|
|
66,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
(24,334 |
) |
|
|
|
(10,992 |
) |
|
|
(48,848 |
) |
|
|
|
(14,292 |
) |
|
Interest income |
|
4,125 |
|
|
|
|
226 |
|
|
|
6,888 |
|
|
|
|
416 |
|
|
Other, net |
|
(241 |
) |
|
|
|
349 |
|
|
|
(180 |
) |
|
|
|
182 |
|
|
Total other expenses, net |
|
(20,450 |
) |
|
|
|
(10,417 |
) |
|
|
(42,140 |
) |
|
|
|
(13,694 |
) |
|
Net income |
|
62,112 |
|
|
|
|
46,951 |
|
|
|
239,575 |
|
|
|
|
53,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to the noncontrolling interest |
|
(1,471 |
) |
|
|
|
(726 |
) |
|
|
(2,379 |
) |
|
|
|
(1,499 |
) |
|
Net income attributable to Tsakos Energy Navigation
Limited |
$ |
60,641 |
|
|
|
$ |
46,225 |
|
|
$ |
237,196 |
|
|
|
$ |
51,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of preferred dividends |
|
(8,673 |
) |
|
|
|
(8,704 |
) |
|
|
(17,347 |
) |
|
|
|
(17,377 |
) |
|
Undistributed income to Series G participants |
|
- |
|
|
|
|
(370 |
) |
|
|
- |
|
|
|
|
(353 |
) |
|
Deemed dividend on Series D preferred shares |
|
(3,256 |
) |
|
|
|
- |
|
|
|
(3,256 |
) |
|
|
|
- |
|
|
Net income attributable to common stockholders of Tsakos
Energy Navigation Limited |
$ |
48,712 |
|
|
|
$ |
37,151 |
|
|
$ |
216,594 |
|
|
|
$ |
34,013 |
|
|
Earnings per share, basic and diluted |
$ |
1.65 |
|
|
|
$ |
1.31 |
|
|
$ |
7.34 |
|
|
|
$ |
1.26 |
|
|
Weighted average number of common shares, basic |
|
29,505,603 |
|
|
|
|
28,398,404 |
|
|
|
29,505,603 |
|
|
|
|
26,992,886 |
|
|
Weighted average number of common shares, diluted |
|
29,505,603 |
|
|
|
|
28,704,595 |
|
|
|
29,505,603 |
|
|
|
|
27,299,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
June 30 |
|
|
|
December 31 |
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
Cash |
|
534,094 |
|
|
|
|
309,439 |
|
|
|
|
|
|
|
|
|
Other assets |
|
226,811 |
|
|
|
|
371,911 |
|
|
|
|
|
|
|
|
|
Vessels, net |
|
2,544,453 |
|
|
|
|
2,580,575 |
|
|
|
|
|
|
|
|
|
Advances for vessels under construction |
|
143,997 |
|
|
|
|
46,650 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
3,449,355 |
|
|
|
$ |
3,308,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt and other financial liabilities, net of deferred finance
costs |
|
1,538,086 |
|
|
|
|
1,577,877 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
276,138 |
|
|
|
|
207,779 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
1,635,131 |
|
|
|
|
1,522,919 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,449,355 |
|
|
|
$ |
3,308,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
OTHER FINANCIAL DATA |
|
June 30 |
|
|
June 30 |
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
143,496 |
|
|
|
$ |
49,267 |
|
|
$ |
258,502 |
|
|
|
$ |
73,553 |
|
|
Net cash (used in) provided by investing activities |
$ |
(49,298 |
) |
|
|
$ |
14,040 |
|
|
$ |
37,025 |
|
|
|
$ |
(144,159 |
) |
|
Net cash (used in) provided by financing activities |
$ |
(35,786 |
) |
|
|
$ |
(34,476 |
) |
|
$ |
(70,872 |
) |
|
|
$ |
115,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE per ship per day |
$ |
38,353 |
|
|
|
$ |
29,278 |
|
|
$ |
40,182 |
|
|
|
$ |
24,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses per ship per day |
$ |
9,492 |
|
|
|
$ |
8,367 |
|
|
$ |
9,349 |
|
|
|
$ |
8,056 |
|
|
Vessel overhead costs per ship per day |
$ |
2,337 |
|
|
|
$ |
1,244 |
|
|
$ |
1,793 |
|
|
|
$ |
1,195 |
|
|
|
|
11,829 |
|
|
|
|
9,611 |
|
|
|
11,142 |
|
|
|
|
9,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels during period |
|
58.0 |
|
|
|
|
65.2 |
|
|
|
60.1 |
|
|
|
|
65.5 |
|
|
Number of vessels at end of period |
|
58.0 |
|
|
|
|
65.0 |
|
|
|
58.0 |
|
|
|
|
65.0 |
|
|
Average age of fleet at end of period |
Years |
10.5 |
|
|
|
|
10.5 |
|
|
|
10.5 |
|
|
|
|
10.5 |
|
|
Dwt at end of period (in thousands) |
|
7,178 |
|
|
|
|
7,185 |
|
|
|
7,178 |
|
|
|
|
7,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter employment - fixed rate |
Days |
2,308 |
|
|
|
|
2,021 |
|
|
|
4,585 |
|
|
|
|
3,968 |
|
|
Time charter and pool employment - variable rate |
Days |
1,554 |
|
|
|
|
1,921 |
|
|
|
3,355 |
|
|
|
|
3,798 |
|
|
Period employment coa at market rates |
Days |
86 |
|
|
|
|
133 |
|
|
|
147 |
|
|
|
|
223 |
|
|
Spot voyage employment at market rates |
Days |
1,024 |
|
|
|
|
1,478 |
|
|
|
2,276 |
|
|
|
|
3,095 |
|
|
Total operating days |
|
4,972 |
|
|
|
|
5,553 |
|
|
|
10,363 |
|
|
|
|
11,084 |
|
|
Total available days |
|
5,278 |
|
|
|
|
5,935 |
|
|
|
10,872 |
|
|
|
|
11,864 |
|
|
Utilization |
|
94.2 |
% |
|
|
|
93.6 |
% |
|
|
95.3 |
% |
|
|
|
93.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
|
Reconciliation of Net income to Adjusted
EBITDA |
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Three months ended |
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Six months ended |
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June 30 |
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June 30 |
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2023 |
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2022 |
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2023 |
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2022 |
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Net income attributable to Tsakos Energy Navigation Limited |
$ |
60,641 |
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$ |
46,225 |
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$ |
237,196 |
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$ |
51,743 |
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Depreciation and amortization |
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35,264 |
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34,168 |
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70,403 |
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67,518 |
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Interest Expense |
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24,334 |
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10,992 |
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48,848 |
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14,292 |
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Gains on sale of vessels |
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- |
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(299 |
) |
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(81,198 |
) |
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(299 |
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Adjusted EBITDA |
$ |
120,239 |
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$ |
91,086 |
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$ |
275,249 |
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$ |
133,254 |
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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: |
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(i) TCE which
represents voyage revenue less voyage expenses is divided by the
number of operating days less 117 days lost for the second quarter
and 281 days for the first half of 2023 and 170 days for the prior
year quarter of 2022 and 374 days for first half of 2022,
respectively, as a result of calculating revenue on a loading to
discharge basis. |
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(ii) Vessel
overhead costs are General & Administrative expenses, which
also include Management fees, Stock compensation expense and
Management incentive award. |
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(iii) Operating
expenses per ship per day which exclude Management fees, General
& Administrative expenses, Stock compensation expense and
Management incentive award. |
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(iv) Adjusted
EBITDA. See above for reconciliation to net income. |
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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. |
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The Company does
not incur corporation tax. |
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Tsakos Energy Navigation (NYSE:TNP)
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Tsakos Energy Navigation (NYSE:TNP)
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From Apr 2023 to Apr 2024