Tsakos Energy Navigation Limited (TEN) (NYSE: TNP) reported financial results (unaudited) for the third quarter and first nine months of 2007.
Net income was a record $50.0m for the third quarter of 2007, (including capital gains of
$31.8m) as compared with $44.5m (including capital gains of $13.3m) for the
third quarter of 2006. Net revenues (voyage revenues net of commissions and voyage expenses)
expanded 3.9% to $97.2m from $93.5m reflecting growth of the fleet (43.6 vessel
average in Q3 2007 versus 37.1 vessel average in Q3 2006) and the effect of the Company’s
balanced employment policy to provide contracted rates in cyclical markets. The time charter
equivalent per ship per day was $26,467 in the third quarter of 2007 versus $29,779 in the third
quarter of 2006. Operating income rose 15.8% to $71.1m (including capital gains of $31.8m) in this year’s third quarter from $61.4m (including capital gains of $13.3m) in the similar period of last year.
Depreciation was higher at $21.3m from $16.6m as a result of the growth and continuous modernization of the fleet. Net financing costs also grew reflecting financing of the
fleet expansion, higher interest rates and interest rate swap valuations. Net income before
depreciation rose by 16.7% to $71.3m as against $61.1m in the same quarter last
year. Diluted earnings per share increased 12% to $2.61 from $2.33 in the third quarter of 2006.
For the nine months of 2007, net income was a record $131.0m (including capital gains of
$38.2m), exceeding the previous record for the 2006 nine months of $119.3m
(including capital gains of $13.3m). Net revenues (voyage revenues net of commissions
and voyage expenses) grew 20.6% to $300.9m from $249.4m in the 2006 similar
period reflecting a growing fleet (41.2 vessel average for the nine months of 2007 versus 32.7
vessel average in the similar 2006 period) and a chartering policy that includes profit-sharing
components.
The
time charter equivalent was $29,233 per ship per day as compared to $30,290 in the nine
months of 2006. Operating income rose significantly by 24.7% to $175.9m from $141.1m. Depreciation was $60.0m versus $42.1m as a result of the expansion and continuous modernization of the fleet. Net financing costs were higher reflecting increased debt and higher interest rates. Net income before depreciation rose by 18.3% to $191.0m from $161.4m in the 2006 period. Diluted per share earnings grew 9.8% to $6.86 as opposed to $6.25 in the nine months of 2006.