Ten Ltd. Reports Profits for the Second Quarter and Six Months Ended June 30, 2023 and Declares Total Annual Dividend of $1.00 Per Common Share for 2023
- Net income increases by over 350% to $237 million
- Cash reserves increase to $534.1 million
- Dividends of $138 million paid
- New charters secure over $1.5 billion in revenue backlog
- None.
Over
Long-term market fundamentals remain strong
New charters secured over
10-green vessel newbuilding program on track – Four dual-fuel aframaxes to be delivered from September 2023 to first quarter of 2024
ATHENS, Greece, Sept. 07, 2023 (GLOBE NEWSWIRE) -- 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 RESULTS
With 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
Operating income more than quadrupled to
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
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
The average Time Charter Equivalent (TCE) in the 2023 first six-month period reached
Adjusted Earnings Before Interest Tax Depreciation & Amortization (EBITDA) more than doubled to
Positive fleet performance and the free cash generated by vessel sales, resulted in TEN’s cash reserves increasing to
Bank debt during the first six months of the year continued its downward trajectory and settled at
Interest and finance costs in the first half of 2023 reached
Daily operating expenses per vessel during the 2023 first six months averaged
Depreciation and amortization costs combined were at
Q2 2023 SUMMARY RESULTS
TEN, whilst operating on average seven vessels less than in the 2022 second quarter, generated
The resulting operating income climbed to
Adjusted EBITDA for the second quarter of 2023 recorded a
Fleet utilization, despite a number of scheduled dry-dockings, remained high at
Daily average TCE per vessel, following the market momentum, increased to
Overall, voyage expenses during the 2023 second quarter fell approximately
Interest and finance costs in the second quarter of 2023, continuing to be impacted by high interest rates globally, settled at
SUBSEQUENT EVENTS
In the third quarter of 2023 the Company redeemed in full
New and extended time charter business at renewed rates increases revenue backlog to over
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 - OTHER
As previously announced, TEN will distribute to common shareholders, a second semi-annual dividend of
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
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 & OUTLOOK
While 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
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
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 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:
Company
Tsakos Energy Navigation, Ltd.
George Saroglou
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 | 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 | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
June 30 | June 30 | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||
Net income attributable to Tsakos Energy Navigation Limited | $ | 60,641 | $ | 46,225 | $ | 237,196 | $ | 51,743 | ||||||||||
Depreciation and amortization | 35,264 | 34,168 | 70,403 | 67,518 | ||||||||||||||
Interest Expense | 24,334 | 10,992 | 48,848 | 14,292 | ||||||||||||||
Gains on sale of vessels | - | (299 | ) | (81,198 | ) | (299 | ) | |||||||||||
Adjusted EBITDA | $ | 120,239 | $ | 91,086 | $ | 275,249 | $ | 133,254 | ||||||||||
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 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. | ||||||||||||||||||
(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. |