TEN, Ltd. Reports Profits for the First Quarter 2024 and Sets Date for First Common Share Semi-Annual Dividend of $0.60
TEN reported strong results for Q1 2024, with voyage revenues of $201.6 million and net income of $54 million, translating to $1.60 per share. The company's fleet renewal and growth initiatives are on track, with the delivery of three dual-fuel LNG vessels, and the sale and purchase of multiple ships. Cash reserves stood at $344 million, and bank debt reached $1.66 billion. Operating income was $76.2 million, including $16.2 million from vessel sales. Despite reduced fleet utilization and higher drydocking days, TEN maintained healthy TCE earnings of $33,403 per ship per day. The company announced a semi-annual dividend of $0.60 per share, double that of the previous year, to be distributed on July 18, 2024. The NYSE ticker symbol will change to 'TEN' effective July 1, 2024. The tanker market fundamentals remain solid, and TEN's fleet modernization efforts are contributing to its sustainable growth.
- Q1 2024 voyage revenues reached $201.6 million.
- Net income for Q1 2024 was $54 million, translating to $1.60 EPS.
- Cash reserves as of March 31, 2024, totaled $344 million.
- Operating income was $76.2 million, including $16.2 million from vessel sales.
- Healthy TCE earnings of $33,403 per ship per day.
- Semi-annual dividend of $0.60 per share, double that of the previous year.
- Delivery of three dual-fuel LNG vessels.
- Fleet modernization and green initiatives are on track.
- Fleet utilization reduced to 91.3% from 96.4% in Q1 2023 due to increased drydocking.
- Bank debt increased to $1.66 billion.
- Fleet depreciation edged higher at $32.5 million.
Insights
The financial performance of TEN, Ltd. in Q1 2024 is noteworthy, especially considering the fleet adjustments and maintenance activities. The company reported
One of the key takeaways is the company's ability to maintain steady vessel operating expenses at
The continuous investment in green technology and fleet renewal is a long-term positive, positioning TEN favorably in an evolving regulatory environment. The new NYSE ticker symbol “TEN” may also enhance visibility and market perception. From a financial perspective, the robust earnings, dividend growth and strategic initiatives make this a positive development.
From a market perspective, TEN, Ltd.'s strategic focus on fleet modernization and green initiatives aligns well with current industry trends. The introduction of six Dual-Fuel LNG vessels indicates a commitment to sustainability, potentially attracting environmentally-conscious investors and clients. The green initiative’s success will likely aid in maintaining or even increasing market share in an industry that is progressively leaning towards eco-friendly solutions.
The tanker market fundamentals remain solid, supported by geopolitical tensions and tight supply-demand dynamics. This environment favors higher freight rates and asset values, which TEN appears well-positioned to capitalize on. The planned construction of additional LR1 newbuildings also suggests confidence in the market's future potential. For investors, this consistent strategic alignment with market trends and strong fundamentals present a compelling growth narrative.
TEN’s strategic maneuvers, including the significant fleet renewal and sale of older vessels, reflect a proactive approach to maintaining operational efficiency and competitiveness. The replacement of older vessels with modern, environmentally friendly ones supports the company's green footprint, which is becoming increasingly important in global maritime trade. This strategy not only reduces operational costs in the long run but also ensures compliance with stricter environmental regulations.
The planned increase in fleet size with the construction of new vessels, coupled with the solid dividend payout, underscores a dual approach to growth and shareholder value. The collaboration between Mr. Harrys Kosmatos and Mr. Paul Durham as co-Chief Financial Officers points to a strengthened leadership team, which could enhance corporate governance and financial oversight. However, investors should remain vigilant about the potential long-term impacts of increased debt levels, despite the competitive financing terms.
Dividend doubles from amount paid at same time last year
Significant fleet renewal - increased sale & purchase and newbuilding activity since beginning of 2024
Green initiative on target - Six Dual-Fuel LNG vessels fully operational
New NYSE Ticker Symbol “TEN” effective July 1st, 2024
Tanker market fundamentals remain solid
ATHENS, Greece, June 20, 2024 (GLOBE NEWSWIRE) -- TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results (unaudited) for the quarter ended March 31, 2024.
Q1 2024 SUMMARY RESULTS
The first quarter of 2024 has been the springboard for TEN’s green drive with a series of vessel renewals and future growth initiatives. During this time, the fleet averaged almost two vessels fewer than in the equivalent 2023 period and had eight vessels undergoing scheduled drydockings and repairs compared to only two vessels in the first quarter of 2023. Despite these fleet adjustments and necessary maintenance procedures, voyage revenues reached a healthy
Net income for the first quarter of 2024 at
The aforementioned fleet maintenance in the first quarter of 2024 reduced average utilization to
Adjusted EBITDA for the first quarter of 2024, impacted by the reduced fleet size and the increased number of off-hire days due to drydockings, totaled
The Company’s cash reserves remained at a solid
During the first quarter of 2024, TEN took delivery of three modern dual-fuel LNG powered vessels. These vessels were financed by cash-at-hand and bank loans at competitive terms. As a result, bank debt at the end of the first quarter of 2024 reached
Fleet depreciation, primarily due to the addition of three modern vessels, edged higher at
Vessel operating expenses were kept at steady levels during the first quarters of 2023 and 2024, respectively, at
SUBSEQUENT EVENTS
As previously announced, from July 1st, 2024 onwards, the ticker symbol for TEN’s common shares will change from “TNP” to “TEN”. TEN’s preferred shares will correspondingly transition to the new ticker and will trade on the New York Stock Exchange (NYSE) under the symbols “TEN-PRE” and “TEN-PRF”.
On June 14, 2024, the Company’s Board of Directors appointed Mr. Harrys Kosmatos, TEN’s Corporate Development Officer as the Company’s co-Chief Financial Officer, effective July 1st, 2024. Mr. Kosmatos will work alongside and complement Mr. Paul Durham, TEN’s long-standing Chief Financial Officer.
Following the introduction of four vessels and the sale of one suezmax in the first quarter of 2024, TEN has taken delivery of another four vessels from Viken Crude AS and sold to third party interests two aframaxes, one suezmax and one LNG carrier for a substantial profit. In addition, TEN is in firm discussions with a Far Eastern yard for the construction of five LR1 newbuildings with expected delivery between the second quarter of 2027 and third quarter of 2028.
This heightened activity in 2024 so far, has resulted in the divestment of assets of 0.6 million deadweight tonnes with an average age of 17.5 years and their concurrent replacement with environmentally friendly vessels of 1.4 million deadwight tonnes averaging 1.5 years.
CORPORATE AFFAIRS - DIVIDEND
On July 18, 2024, TEN will distribute to common shareholders a first semi-annual dividend of
CORPORATE STRATEGY
TEN’s stated policy of expanding its “green” footprint while divesting from its first-generation tankers continues unabated. The first half of 2024 was one of the busiest ever for the Company which engaged in activities relating to sales, acquisitions and new orders of 14 vessels, five of which in the first quarter. TEN today operates a fleet of six vessels with alternative fuel capabilities, all on long-term contracts to oil majors.
The greenship initiative of the fleet has complemented TEN’s cash generating ability and assisted the Company’s in increasing its reserves to about
With a well-balanced fleet of vessels operating in flexible and secured revenue contracts a right balance has been struck to, on the one hand, safeguard TEN’s ability to benefit from market peaks, while on the other, provide adequate cover for the fleet’s expenses. It is this equilibrium and ability to adjust to market conditions, without assuming unnecessary risks, that has enabled TEN to maintain its uninterrupted dividend payment record while making TEN an operator of choice for the transportation needs of its blue-chip clientele.
The tanker markets are on a solid path forward, fueled by the continuous tightness in the supply and demand of tonnage spurred by geopolitical tensions across numerous, geographically significant for maritime trade, regions. This should enable both freight rates and asset values to remain elevated for the foreseeable future. The creation of new trading routes and the indiscriminate targeting of vessels in the Red Sea have resulted in the over-lengthening of the already stretched global ton-miles.
“True to our strategy of vessel divestments and timely acquisitions, including new orders, TEN maintains the reputation it has built over the decades in the global maritime energy markets,” Mr. George Saroglou, President & COO of TEN commented. “With such heightened renewals activity since the beginning of the year, coupled with a dividend that is twice the amount paid to shareholders this time last year, we remain confident the TEN’s stock price will continue to rise and eventually reflect it’s true value,” 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 | Under Discussion |
| 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 | Q2 2027 | Under Construction | Under Discussion |
| 9 | TBN | Panamax LR1 | Q1 2028 | Under Construction | Under Discussion |
| 10 | TBN | Panamax LR1 | Q1 2028 | Under Construction | Under Discussion |
| 11 | TBN | Panamax LR1 | Q2 2028 | Under Construction | Under Discussion |
| 12 | TBN | Panamax LR1 | Q3 2028 | Under Construction | Under Discussion |
ABOUT TSAKOS ENERGY NAVIGATION
TEN, 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 over 9.0 million dwt.
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, Thursday, June 20, 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 13747051. 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:
Company
Tsakos Energy Navigation Ltd.
George Saroglou, President & COO
+30210 94 07 710
gsaroglou@tenn.gr
Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
ten@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 | 2024 | 2023 | |||||||
| Voyage revenues | $ | 201,589 | $ | 261,212 | |||||
| Voyage expenses | 42,020 | 45,898 | |||||||
| Charter hire expense | 6,013 | 6,792 | |||||||
| Vessel operating expenses | 48,626 | 48,275 | |||||||
| Depreciation and amortization | 37,526 | 35,139 | |||||||
| General and administrative expenses | 7,326 | 7,157 | |||||||
| Gain on sale of vessels | (16,167) | (81,198) | |||||||
| Total expenses | 125,344 | 62,063 | |||||||
| Operating income | 76,245 | 199,149 | |||||||
| Interest and finance costs, net | (25,145) | (24,515) | |||||||
| Interest income | 3,248 | 2,763 | |||||||
| Other, net | 70 | 61 | |||||||
| Total other expenses, net | (21,827) | (21,691) | |||||||
| Net income | 54,418 | 177,458 | |||||||
| Less: Net income attributable to the noncontrolling interest | (384) | (908) | |||||||
| Net income attributable to Tsakos Energy Navigation Limited | $ | 54,034 | $ | 176,550 | |||||
| Effect of preferred dividends | (6,750) | (8,673) | |||||||
| Net income attributable to common stockholders of Tsakos Energy Navigation Limited | $ | 47,284 | $ | 167,877 | |||||
| Earnings per share, basic and diluted | $ | 1.60 | $ | 5.69 | |||||
| Weighted average number of common shares, basic and diluted | 29,505,603 | 29,505,603 | |||||||
| BALANCE SHEET DATA | March 31 | December 31 | |||||||
| 2024 | 2023 | ||||||||
| Cash | 343,994 | 376,694 | |||||||
| Other assets | 229,788 | 236,800 | |||||||
| Vessels, net | 2,785,561 | 2,600,021 | |||||||
| Advances for vessels under construction and acquisitions | 143,432 | 150,575 | |||||||
| Total assets | $ | 3,502,775 | $ | 3,364,090 | |||||
| Debt and other financial liabilities, net of deferred finance costs | 1,659,845 | 1,562,657 | |||||||
| Other liabilities | 161,477 | 148,786 | |||||||
| Stockholders' equity | 1,681,453 | 1,652,647 | |||||||
| Total liabilities and stockholders' equity | $ | 3,502,775 | $ | 3,364,090 | |||||
| Three months ended | |||||||||
| OTHER FINANCIAL DATA | March 31 | ||||||||
| 2024 | 2023 | ||||||||
| Net cash provided by operating activities | $ | 74,958 | $ | 115,006 | |||||
| Net cash (used in) provided by investing activities | $ | (197,016) | $ | 86,323 | |||||
| Net cash provided by (used in) financing activities | $ | 89,358 | $ | (35,086) | |||||
| TCE per ship per day | $ | 33,403 | $ | 41,882 | |||||
| Operating expenses per ship per day | $ | 9,387 | $ | 9,213 | |||||
| Vessel overhead costs per ship per day | $ | 1,323 | $ | 1,279 | |||||
| 10,710 | 10,492 | ||||||||
| FLEET DATA | |||||||||
| Average number of vessels during period | 60.9 | 62.2 | |||||||
| Number of vessels at end of period | 62.0 | 58.0 | |||||||
| Average age of fleet at end of period | Years | 10.3 | 10.2 | ||||||
| Dwt at end of period (in thousands) | 7,581 | 7,178 | |||||||
| Time charter employment - fixed rate | Days | 2,630 | 2,277 | ||||||
| Time charter and pool employment - variable rate | Days | 1,392 | 1,801 | ||||||
| Period employment coa at market rates | Days | - | 61 | ||||||
| Spot voyage employment at market rates | Days | 1,035 | 1,252 | ||||||
| Total operating days | 5,057 | 5,391 | |||||||
| Total available days | 5,539 | 5,594 | |||||||
| Utilization | 91.3% | 96.4% | |||||||
| Non-GAAP Measures | |||||||||
| Reconciliation of Net income to Adjusted EBITDA | |||||||||
| Three months ended | |||||||||
| March 31 | |||||||||
| 2024 | 2023 | ||||||||
| Net income attributable to Tsakos Energy Navigation Limited | $ | 54,034 | $ | 176,550 | |||||
| Depreciation and amortization | 37,526 | 35,139 | |||||||
| Interest Expense | 25,145 | 24,515 | |||||||
| Gain on sale of vessels | (16,167) | (81,198) | |||||||
| Adjusted EBITDA | $ | 100,538 | $ | 155,006 | |||||
| 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 171 days lost for the first quarter of 2024 as a result of calculating revenue on a loading to discharge basis, compared to 164 days lost for the first quarter of 2023. | |||||||||
| (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. | |||||||||
FAQ
What were TEN's voyage revenues for Q1 2024?
What was TEN's net income for Q1 2024?
What is the new NYSE ticker symbol for TEN's common shares?
When will TEN distribute its first semi-annual dividend for 2024?
What was the impact of fleet maintenance on TEN's utilization rate in Q1 2024?
How has TEN's bank debt changed as of Q1 2024?
