TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results
(unaudited) for the nine months and third quarter ended September
30, 2023.
NINE MONTHS 2023 SUMMARY
RESULTSIn the first nine months of 2023, TEN’s fleet
generated gross revenues of $669 million, $79 million higher than
the 2022 first nine-months, reflecting the continued strength of
the tanker market. Operating income, excluding a gain on sale of
vessels, climbed to $253 million, $119 million higher from the 2022
same period.
Net income for the first nine months of 2023 at
$272 million, $166 million higher from the 2022 first nine months
equating to $8.19 per common share.
Adjusted EBITDA reached $367 million compared to
$236 million in the 2022 first nine-month period, a $131 million
increase.
Average TCE per ship per day for the first nine
months of this year amounted to $37,262, 38% higher than the 2022
nine-month level while utilization reached 95.6% from 93.7% in the
2022 equivalent period assisted by a meaningful decrease in vessels
operating in the spot market.
Depreciation and amortization combined remained
relatively stable compared to the 2022 first nine-month period at
$106.7 million.
During the first nine-months of this year, debt
repayments amounted to $140 million bringing total debt and other
financial liabilities to $1.56 billion as of September 30,
2023.
Total finance costs in the 2023 first
nine-months amounted to $73 million mostly due to the materially
higher global interest rates from the 2022 equivalent period.
Vessel overhead cost per ship per day in the
first nine months of 2023 remained relatively stable at $1,593 when
compared to the 2022 equivalent period.
Cash reserves remained solid at $394 million as
of September 30, 2023, from $309 million as of December 31, 2022,
after over $115 million of preferred shares redemptions and common
stock dividends.
Q3 2023 SUMMARY RESULTS The
third quarter of 2023 reflected the seasonal softness the tanker
markets experienced, from the lofty levels of the prior quarters,
as many refiners entered their maintenance season ahead of the
upcoming winter period.
To this effect, TEN’s fleet, half of which was
operating under market-related contracts, generated $187 million of
revenues and produced an operating income of $53 million resulting
in net income of $31 million or $0.83 per common share.
Adjusted EBITDA in the 2023 third quarter
amounted to a healthy $92 million, from $103 million in the 2022
third quarter which included, on average, seven more vessels.
Depreciation and amortization combined remained
relatively low at $36.3 million compared to the 2022 third
quarter.
Fleet utilization reached 96.1%, after an
increase of vessels in time-charter employment.
Overhead costs per ship per day decreased from
the 2022 third quarter levels and settled at $1,187.
General and administrative expenses during the
third quarter of 2023 experienced a 21% drop from the 2022 third
quarter to $6.3 million in the 2023 third quarter.
Finance costs were $9 million higher compared to
the 2022 third quarter due to higher interest rates across world
economies.
SUBSEQUENT EVENTS & OTHERAs
previously announced, the Company has repaid in full $88.0 million
of its publicly traded 8.75% Series D Cumulative Redeemable
Perpetual Preferred Shares and $20.3 million of a privately placed
perpetual preferred instrument, carrying a coupon of 7.50%, for a
total of $108.3 million. These redemptions create savings of
approximately $9 million to our bottom line.
Following the delivery of the first in a series
of four LNG-powered aframax tankers on long-term employment to a
European oil concern on September 21, 2023, the second vessel of
that series was delivered and commenced its employment on October
26, 2023. The remaining two in the series of such environmentally
designed vessels are scheduled for delivery in the first quarter of
2024. This order in its entirety is expected to generate gross
revenues for TEN in excess of $205 million over the firm period of
the contracts.
After the sale of eight first-generation
vessels, our newbuilding program which started with 10
environmentally friendly vessels is well on track to further
elevate TEN’s footprint in the ever-developing high-end green
vessel technology.
DIVIDEND – COMMON SHARES
Following the June 2023 and October 2023
payments, the latter being a special distribution, the Company as
previously announced will pay a dividend of $0.30 per common share
on December 20, 2023 to holders of record as of December 14, 2023,
increasing total payments made this year to $1.00 per common share.
This distribution reflects the second regular dividend payment in
2023 which is in line with TEN’s semi-annual dividend policy.
Inclusive of this upcoming distribution, TEN will have paid common
and preferred stock holders over $800 million in dividends since
its 2002 NYSE listing.
STRATEGY & OUTLOOK
TEN, in this healthy market has chartered or
renewed more than 26 vessels in the first nine months of 2023, in
various fixed or market related contracts, at significantly higher
rates, bringing the total secured revenue backlog to over $1.4
billion.
The Company’s fleet is well positioned to
benefit from the continued health of the tanker markets. With the
orderbook currently at historically low levels, the creation of
new, long-haul trades as a result of the geopolitical tensions and
the lack of yard capacity for new vessels, provide a cushion
against overbuilding the sector, which has been the single most
important factor to destabilize the tanker markets.
As we are entering the winter months, stronger
than usual charter rates have appeared both for spot and long-term
business while asset prices continue to remain firm despite the
lack of activity during the summer months. To this effect and as
interest in older tonnage is on the increase, TEN will actively
continue to divest some of its first-generation vessels and aim to
replace them with younger tonnage, either on the second-hand or
newbuilding front.
Interest in long-term business from significant
oil concerns remains strong and continues to be the main driver for
TEN going forward.
The Company’s solid cash reserves allow
management the flexibility to explore growth opportunities and
maintain its uninterrupted dividend policy.
“We are pleased with the Company’s performance
during the traditionally cyclical low of the year and have already
begun to take advantage of the strong rates, both for long-term and
spot business, currently in evidence as we enter the winter months,
“Mr. George Saroglou, President and COO of TEN commented. “With
sector fundamentals well in our favor and with interest for
long-term contracts on the increase, we remain confident that TEN
will continue to present a compelling proposition to those seeking
a longer-term participation in the global energy trades through
companies that have withstood the test of time,” Mr. Saroglou
concluded.
ABOUT TEN
TEN, 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 two 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.
TEN’s CURRENT GROWTH
PROGRAM
# |
Name |
Type |
Delivery |
Status |
Employment |
1 |
TBN |
Aframax Dual Fuel |
Sep. 2023 |
Delivered |
Yes |
2 |
TBN |
Aframax Dual Fuel |
Oct. 2023 |
Delivered |
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.
Conference Call Details:
As announced previously, today, Tuesday,
November 21, 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 13742573. Click here for the 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:
Company
Tsakos Energy Navigation Ltd.George
SaroglouPresident & COO+30210 94 07 710gsaroglou@tenn.gr
Investor Relations / Media
Capital Link, Inc.Nicolas BornozisMarkella
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 |
|
|
Nine months ended |
|
|
September 30 (unaudited) |
|
|
September 30 (unaudited) |
STATEMENT OF OPERATIONS DATA |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
186,659 |
|
|
$ |
223,742 |
|
|
$ |
669,325 |
|
|
$ |
590,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
34,260 |
|
|
|
52,813 |
|
|
|
119,050 |
|
|
|
163,753 |
|
Charter hire expense |
|
6,079 |
|
|
|
8,806 |
|
|
|
18,601 |
|
|
|
26,132 |
|
Vessel operating expenses |
|
50,670 |
|
|
|
50,430 |
|
|
|
145,613 |
|
|
|
140,236 |
|
Depreciation and amortization |
|
36,298 |
|
|
|
35,894 |
|
|
|
106,701 |
|
|
|
103,411 |
|
General and administrative expenses |
|
6,344 |
|
|
|
8,060 |
|
|
|
25,838 |
|
|
|
22,237 |
|
(Gain) Loss on sale of vessels |
|
- |
|
|
|
739 |
|
|
|
(81,198 |
) |
|
|
440 |
|
Total expenses |
|
133,651 |
|
|
|
156,742 |
|
|
|
334,605 |
|
|
|
456,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
53,008 |
|
|
|
67,000 |
|
|
|
334,720 |
|
|
|
133,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
(24,044 |
) |
|
|
(15,069 |
) |
|
|
(72,893 |
) |
|
|
(29,361 |
) |
Interest income |
|
3,221 |
|
|
|
429 |
|
|
|
10,109 |
|
|
|
845 |
|
Other, net |
|
154 |
|
|
|
(13 |
) |
|
|
(26 |
) |
|
|
169 |
|
Total other expenses, net |
|
(20,669 |
) |
|
|
(14,653 |
) |
|
|
(62,810 |
) |
|
|
(28,347 |
) |
Net income |
|
32,339 |
|
|
|
52,347 |
|
|
|
271,910 |
|
|
|
105,589 |
|
Less: Net income attributable to the noncontrolling interest |
|
(1,110 |
) |
|
|
(993 |
) |
|
|
(3,490 |
) |
|
|
(2,492 |
) |
Net income attributable to Tsakos Energy Navigation
Limited |
$ |
31,229 |
|
|
$ |
51,354 |
|
|
$ |
268,420 |
|
|
$ |
103,097 |
|
Effect of preferred dividends |
|
(6,750 |
) |
|
|
(8,673 |
) |
|
|
(23,434 |
) |
|
|
(26,050 |
) |
Undistributed income to Series G participants |
|
- |
|
|
|
(343 |
) |
|
|
- |
|
|
|
(728 |
) |
Deemed dividend on Series D preferred shares |
|
- |
|
|
|
- |
|
|
|
(3,256 |
) |
|
|
- |
|
Net income attributable to common stockholders of Tsakos
Energy Navigation Limited |
$ |
24,479 |
|
|
$ |
42,338 |
|
|
$ |
241,730 |
|
|
$ |
76,319 |
|
Earnings per share, basic and diluted |
$ |
0.83 |
|
|
$ |
1.48 |
|
|
$ |
8.19 |
|
|
$ |
2.77 |
|
Weighted average number of common shares, basic |
|
29,505,603 |
|
|
|
28,676,821 |
|
|
|
29,505,603 |
|
|
|
27,560,366 |
|
Weighted average number of common shares, diluted |
|
29,505,603 |
|
|
|
28,936,397 |
|
|
|
29,505,603 |
|
|
|
27,850,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
September 30 |
|
|
December 31 |
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Cash |
|
393,505 |
|
|
|
309,439 |
|
|
|
|
|
|
|
Other assets |
|
217,179 |
|
|
|
371,911 |
|
|
|
|
|
|
|
Vessels, net |
|
2,597,986 |
|
|
|
2,580,575 |
|
|
|
|
|
|
|
Advances for vessels under construction |
|
150,499 |
|
|
|
46,650 |
|
|
|
|
|
|
|
Total assets |
$ |
3,359,169 |
|
|
$ |
3,308,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt and other financial liabilities, net of deferred finance
costs |
|
1,559,610 |
|
|
|
1,577,877 |
|
|
|
|
|
|
|
Other liabilities |
|
172,062 |
|
|
|
207,779 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
1,627,497 |
|
|
|
1,522,919 |
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
3,359,169 |
|
|
$ |
3,308,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
|
Three months ended |
|
|
Nine months ended |
OTHER FINANCIAL DATA |
|
September 30 |
|
|
September 30 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net cash provided by operating activities |
$ |
44,573 |
|
|
$ |
82,136 |
|
|
$ |
303,075 |
|
|
$ |
155,691 |
|
Net cash used in by investing activities |
$ |
(90,866 |
) |
|
$ |
(57,453 |
) |
|
$ |
(53,841 |
) |
|
$ |
(201,614 |
) |
Net cash (used in) provided by financing activities |
$ |
(94,296 |
) |
|
$ |
4,946 |
|
|
$ |
(165,168 |
) |
|
$ |
120,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE per ship per day |
$ |
31,349 |
|
|
$ |
32,085 |
|
|
$ |
37,262 |
|
|
$ |
27,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses per ship per day |
$ |
10,174 |
|
|
$ |
8,915 |
|
|
$ |
9,620 |
|
|
$ |
8,345 |
|
Vessel overhead costs per ship per day |
$ |
1,187 |
|
|
$ |
1,338 |
|
|
$ |
1,593 |
|
|
$ |
1,243 |
|
|
|
11,361 |
|
|
|
10,253 |
|
|
|
11,213 |
|
|
|
9,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FLEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels during period |
|
58.1 |
|
|
|
65.5 |
|
|
|
59.4 |
|
|
|
65.5 |
|
Number of vessels at end of period |
|
59.0 |
|
|
|
65.0 |
|
|
|
59.0 |
|
|
|
65.0 |
|
Average age of fleet at end of period |
Years |
10.6 |
|
|
|
10.4 |
|
|
|
10.6 |
|
|
|
10.4 |
|
Dwt at end of period (in thousands) |
|
7,293 |
|
|
|
7,271 |
|
|
|
7,293 |
|
|
|
7,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter employment - fixed rate |
Days |
2,477 |
|
|
|
1,995 |
|
|
|
7,062 |
|
|
|
5,963 |
|
Time charter and pool employment - variable rate |
Days |
1,532 |
|
|
|
1,889 |
|
|
|
4,887 |
|
|
|
5,687 |
|
Period employment coa at market rates |
Days |
0 |
|
|
|
79 |
|
|
|
147 |
|
|
|
302 |
|
Spot voyage employment at market rates |
Days |
1,130 |
|
|
|
1,715 |
|
|
|
3,406 |
|
|
|
4,810 |
|
Total operating days |
|
5,139 |
|
|
|
5,678 |
|
|
|
15,502 |
|
|
|
16,762 |
|
Total available days |
|
5,346 |
|
|
|
6,023 |
|
|
|
16,218 |
|
|
|
17,887 |
|
Utilization |
|
96.1 |
% |
|
|
94.3 |
% |
|
|
95.6 |
% |
|
|
93.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
Reconciliation of Net income to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
September 30 |
|
|
September 30 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Tsakos Energy Navigation Limited |
$ |
31,229 |
|
|
$ |
51,354 |
|
|
$ |
268,420 |
|
|
$ |
103,097 |
|
Depreciation and amortization |
|
36,298 |
|
|
|
35,894 |
|
|
|
106,701 |
|
|
|
103,411 |
|
Interest Expense |
|
24,044 |
|
|
|
15,069 |
|
|
|
72,893 |
|
|
|
29,361 |
|
(Gain) Loss on sale of vessels |
|
- |
|
|
|
739 |
|
|
|
(81,198 |
) |
|
|
440 |
|
Adjusted EBITDA |
$ |
91,571 |
|
|
$ |
103,056 |
|
|
$ |
366,816 |
|
|
$ |
236,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 160 days lost for the
third quarter and 441 days for the nine-month of 2023 and 236 days
for the prior year quarter of 2022 and 610 days for nine-month
period of 2022, 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. |
|
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. |
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Tsakos Energy Navigation (NYSE:TNP)
Historical Stock Chart
From Jul 2024 to Aug 2024
Tsakos Energy Navigation (NYSE:TNP)
Historical Stock Chart
From Aug 2023 to Aug 2024