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TEN Ltd. Reports Results for Fourth Quarter and Year-End 2021 and Declares Dividend of $0.10 Per Common Share

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TEN, Ltd. reported a 6% increase in voyage revenues for 2021, totaling $546.1 million despite a net loss of $58.4 million. The fourth quarter saw a net loss of $14.9 million, yet improved vessel utilization at 96.1% and a healthy TCE of $16,891 indicates potential recovery. The company will pay a semi-annual dividend of $0.10 in June 2022, contributing to $500 million paid since its 2002 NYSE listing. With a fixed revenue backlog exceeding $1 billion and new dual-fuel vessels under contract, TEN aims to capitalize on increasing LNG demand and improve market positioning.

Positive
  • 6% increase in voyage revenues to $546.1 million in 2021.
  • Improved vessel utilization at 96.1% in Q4 2021.
  • Healthy average TCE of $16,891, exceeding market average.
  • Fixed revenue backlog exceeds $1.0 billion.
  • Dividend of $0.10 per share to be paid in June 2022.
Negative
  • Net loss of $58.4 million in 2021 before non-cash charges.
  • Significant non-cash vessel impairment charges of $86.4 million in Q4.
  • Adjusted EBITDA down $151.5 million compared to the previous year.

$1.0 billion in minimum contracted charter earnings

6% increase in voyage revenues – Positive fundamentals for 2022

Strong balance sheet - Continuous debt reduction

Greenship initiative with four Dual-Fuel vessels

$500 million in dividend payments since NYSE listing in 2002

ATHENS, Greece, April 14, 2022 (GLOBE NEWSWIRE) -- TEN, Ltd. (TEN) (NYSE: TNP) (the “Company”) reports results (unaudited) for the fourth quarter and the year ended December 31, 2021.

FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2021
In the fourth quarter of 2021, TEN incurred a net loss of $14.9 million before taking account of non-cash vessel impairment charges of $86.4 million, as compared to a $10.8 million net loss in the 2020 fourth quarter, also before non-cash items.

Excluding the impairment charges, this is one of the best quarterly performances of the past year, indicating the possible beginning of a turnaround, as several of our vessels have been employed at considerably more lucrative rates than what the market was offering in 2021, leaving behind us the challenging consequences arising from two years of global lockdowns that had severely hindered economic growth and frustrated the ability of tanker owners to secure meaningful earnings that market fundamentals underpinned.

Voyage revenues increased in the fourth quarter of 2021 by $7.5 million to $139.1 million, a 5.7% improvement over the 2020 fourth quarter which also had, on average, a slightly higher number of vessels in the fleet.

TEN had six vessels in dry-dock in the 2021 fourth quarter, two of which were brought forward in order to be available for the expected market upturn. Vessel utilization at about 96.1% compared to 91.1% in the 2020 fourth quarter.

The average daily time charter equivalent (TCE) per vessel in the fleet was a healthy $16,891, well in excess of average market rates and an 8% increase from the third quarter of 2021 as markets rounded.

The sizable impairment charges that were incurred in the 2021 fourth quarter, related to six handymax product carriers built in 2005, and a 2006-built product tanker, which will lead to $9.2 million in depreciation savings per annum. These seven vessels remain in good condition and continue to be active in the chartering market, operating primarily under spot contracts.

Management actively monitors the sale & purchase market as asset prices are on the rise and is prepared to sell any of these vessels if and when the opportunity arises. As a result of the impairment charge, there will be a total quarterly reduction in depreciation of almost $2.3 million going forward.

Total operating expenses decreased by 3% or $1.3 million, to $44.5 million from the 2020 fourth quarter which amounted to $45.8 million. On a daily average per vessel basis, fourth quarter operating expenses were $7,919 a 1.2% per day fall and vessel overhead costs remained on average at $1,200 per day, little changed over the past decade.

Depreciation and amortization edged higher by $1.4 million due to preemptive increases of vessels in dry-dock over the past months.

Interest and finance costs net, in the fourth quarter of 2021 amounted to just $8.7 million a 6.5% reduction from the 2020 fourth quarter, again due to lower interest rates, margins and to lower bunker hedge valuations.

Adjusted EBITDA settled at $29.2 million.

FINANCIAL RESULTS FOR THE YEAR 2021
In 2021, TEN incurred losses of $58.4 million before non-cash vessel value impairment charges and loss on sale of vessels as mentioned above.

However, voyage revenues achieved in 2021 amounted to $546.1 million as tanker freight rates fell further due to lack of oil demand and reduced production brought about by pandemic factors and the ensuing lockdowns, which led to demand destruction, trade dysfunction and inflation.

TEN was able to reduce overall operating expenses by over 3.3% with savings of nearly $6 million despite twenty-one vessel dry-dockings, twelve of which were brought forward due to the weak freight rate environment and in expectation of a market turnaround.

Depreciation and amortization increased by 4.5.% partly as a result of the amortization that arose from the dry-docking costs over prior quarters.

G&A expenses remained essentially the same as in the previous year, management fees not moving for over a decade.

As of December 31, 2021, total debt was reduced by a net $129.1 million.

Interest and finance costs fell by 56% or nearly $40 million, as interest rates and margins were reduced.

Adjusted EBITDA in the year amounted to over $115.4 million, a reduction of $151.5 million compared to the previous year.

DIVIDEND – CORPORATE AFFAIRS
The Company will pay a semi-annual dividend of $0.10 per common share in June 2022. This brings the total dividends paid since the NYSE listing in 2002 to about $500 million.

During the fourth quarter of 2021, the Company issued, through its ATM program 4,711,582 common shares and 190,813 preferred shares. As of December 31, 2021, there were outstanding 24,565,940 common shares and 15,001,863 NYSE-listed preferred shares.

SUBSEQUENT EVENTS
On January 12, 2022, TEN took delivery of its third LNG carrier, the Tenergy and commenced its long-term charter at a healthy base rate with an upside potential to today’s very lucrative LNG market.

On March 10, 2022, TEN signed long-term charter contracts for the construction of four dual-fuel LNG powered aframax tankers to a major European end user.

Inclusive of the above charters, TEN’s fixed revenue backlog exceeds $1.0 billion.

In the first quarter of 2022, tanker rates have firmed due to positive fundamentals and geopolitical ramifications caused by the Russian invasion in Ukraine.

CORPORATE STRATEGY
As the world is exiting the pandemic and forcefully adapting to the new realities of the Russian-Ukrainian conflict, energy transportation is again at the forefront of the global agenda as its importance to the global economy is, at last recognized. The expected growth in US oil exports as well as increased LNG shipments to Europe to partly substitute Russian natural gas, in a period of higher global demand for both commodities, will provide additional ton-miles and a boost to both rates and asset prices. In oil tankers in particular, where the orderbook is at historical lows and vessel supply on the backfoot, due to increased scrapping and the elongation of new trade routes, this anticipated firmness is already in evidence. In addition, environmental speed limits that go in force in 2023 will further decrease supply.

In this global backdrop, TEN has already embarked in further modernizing its fleet with the order of four dual-fuel LNG powered aframaxes on long-term employment to a substantial European oil major. On top of this, management is exploring additional opportunities for similar technology vessels in order to reach its goal of a full “Green” fleet by 2030.

In view of the above, a number of our first-generation vessels are sales candidates in the forthcoming months.

With 2021 behind us, experiencing the worst tanker in recent memory, TEN continued its tested and countercyclical operating model that targets growth, at market lows and accretive business expansion. With high utilization a solid balance sheet and further debt reduction.

The first quarter of 2022 reflected solid oil market fundamentals while the effects of the Russian invasion of Ukraine fueled rates to even higher levels.

“We all hope and pray for the end of the conflict and the return to a peaceful open-barrier trading environment,” Mr. Saroglou, Chief Operating Officer in TEN commented. “The path to normality will further amplify the positive fundamentals for tankers and drive strong growth going forward from which TEN is well placed to benefit,” Mr. Saroglou concluded.

CONFERENCE CALL
Today, Thursday, April 14, 2022 at 10 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 that which is included in the earnings press release.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 877 553 9962 (US Toll Free Dial In), 0808 2380 669 (UK Toll Free Dial In) or +44 (0)2071 928592 (Standard International Dial In). Please quote "Tsakos" to the operator.

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.

ABOUT TSAKOS ENERGY NAVIGATION
TEN, founded in 1993 and celebrating this year 29 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 66 double-hull vessels, including one suezmax DP2 shuttle tanker and four dual-fuel LNG powered aframax vessels under construction, constituting a mix of crude tankers, product tankers and LNG carriers, totaling 8 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.

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  Year ended 
   December 31 (unaudited)  December 31 (unaudited) 
 STATEMENT OF OPERATIONS DATA 2021    2020   2021    2020  
                
 Voyage revenues$139,129   $131,632  $546,120   $644,135  
                
 Voyage expenses 49,098    39,905   198,078    145,267  
 Charter hire expense 8,806    5,569   30,056    21,602  
 Vessel operating expenses 44,467    45,765   173,277    179,205  
 Depreciation and amortization 36,046    34,625   143,253    137,100  
 General and administrative expenses 7,196    7,181   29,130    29,040  
 Loss on sale of vessels -    3,401   5,817    6,451  
 Impairment charges 86,368    15,327   86,368    28,776  
 Total expenses 231,981    151,773   665,979    547,441  
                
      Operating (loss) income (92,852)   (20,141)  (119,859)   96,694  
                
 Interest and finance costs, net (8,650)   (9,249)  (31,407)   (70,579) 
 Interest income 200    160   703    1,071  
 Other, net 65    (341)  (18)   36  
 Total other expenses, net (8,385)   (9,430)  (30,722)   (69,472) 
      Net (loss) income  (101,237)   (29,571)  (150,581)   27,222  
                
       Less: Net loss attributable to the noncontrolling interest (670)   (552)  (820)   (3,220) 
 Net (loss) income attributable to Tsakos Energy Navigation Limited$(101,907)    $(30,123) $(151,401)    $24,002  
                
 Effect of preferred dividends (8,668)   (8,313)  (33,603)   (36,579) 
 Deemed dividend on Series C preferred shares -    -   -    (2,493) 
 Deemed dividend on partially redeemed Series G convertible preferred shares -    -   (2,171)   -  
 Net (loss) income attributable to common stockholders of Tsakos Energy Navigation Limited, basic and diluted$(110,575)  $(38,436) $(187,175)  $(15,070) 
 Loss per share, basic and diluted$(5.05)  $(2.10) $(9.53)  $(0.80) 
 Weighted average number of common shares, basic and diluted 21,904,254    18,265,735   19,650,307    18,768,599  
                
 BALANCE SHEET DATA  December 31   December 31        
   2021    2020         
 Cash 127,197    171,771         
 Other assets 260,024    276,362         
 Vessels, net 2,402,958    2,615,112         
 Advances for vessels under construction 104,635    49,030         
      Total assets      $2,894,814         $3,112,275         
                
 Debt, net of deferred finance costs 1,373,187    1,500,357         
 Other liabilities 229,836    230,100         
 Stockholders' equity 1,291,791    1,381,818         
      Total liabilities and stockholders' equity      $2,894,814         $3,112,275         
                
                
   Three months ended  Year ended 
 OTHER FINANCIAL DATA December 31  December 31 
   2021    2020   2021    2020  
 Net cash from operating activities$17,905   $18,234  $53,111   $205,416  
 Net cash (used in) provided by investing activities$(26,678)  $(24,337) $(8,004)  $(94,613) 
 Net cash (used in) provided by financing activities$20,343   $(58,619) $(89,681)  $(136,802) 
                
 TCE per ship per day$16,891   $18,274  $17,037   $23,638  
                
 Operating expenses per ship per day$7,919   $8,013  $7,728   $7,821  
 Vessel overhead costs per ship per day$1,203   $1,190  $1,221   $1,221  
   9,122    9,203   8,949    9,042  
                
 FLEET DATA              
                
 Average number of vessels during period 65.0    65.6   65.4    65.0  
 Number of vessels at end of period 65.0    66.0   65.0    66.0  
 Average age of fleet at end of period Years10.2    9.3   10.2    9.3  
 Dwt at end of period (in thousands) 7,209    7,277   7,209    7,277  
                
 Time charter employment - fixed rate  Days2,549    2,008   8,949    8,961  
 Time charter and pool employment - variable rate  Days1,178    1,141   4,278    5,589  
 Period employment coa at market rates  Days84    89   338    323  
 Spot voyage employment at market rates  Days1,933    2,260   8,525    7,521  
      Total operating days 5,744    5,498   22,090    22,394  
      Total available days 5,980    6,032   23,864    23,781  
       Utilization 96.1%   91.1%  92.6%   94.2% 
                
 Non-GAAP Measures 
 Reconciliation of Net (loss) income to Adjusted EBITDA 
                
   Three months ended  Year ended 
   December 31  December 31 
   2021    2020   2021    2020  
                
 Net (loss) income attributable to Tsakos Energy Navigation Limited$(101,907)  $(30,123) $(151,401)  $24,002  
 Depreciation and amortization 36,046    34,625   143,253    137,100  
 Interest Expense 8,650    9,249   31,407    70,579  
 Loss on sale of vessels -    3,401   5,817    6,451  
 Impairment charges 86,368    15,327   86,368    28,776  
 Adjusted EBITDA$29,157   $32,479  $115,444   $266,908  
                
 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 196 days lost for the fourth quarter and 805 days for the twelve-month of 2021 and 299 days for the prior year quarter and 917 days for the twelve-month, 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 (loss).       
   
 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 is TEN's dividend payout for June 2022?

TEN will pay a semi-annual dividend of $0.10 per common share in June 2022.

How much has TEN paid in dividends since its 2002 NYSE listing?

TEN has paid approximately $500 million in dividends since its NYSE listing in 2002.

What impact did the pandemic have on TEN's revenues in 2021?

TEN's voyage revenues fell due to reduced oil demand and production linked to pandemic factors.

How did TEN perform in terms of vessel utilization in 2021?

TEN achieved a vessel utilization rate of 96.1% in the fourth quarter of 2021.

What is TEN's fixed revenue backlog?

TEN's fixed revenue backlog exceeds $1.0 billion.

Tsakos Energy Navigation Ltd.

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