TEN Net Income Up 200%
Greece-based Tsakos Energy Navigation Limited (TEN) reported positive results in the first quarter of 2019 with a net income of $11.2 million, showing an improvement of 200% YoY, as a result of improved rate conditions, following the healthy market recovery experienced at the end of 2018.
Gross revenues totaled $147.0 million, 17.0% higher than in the 2018 first quarter due to improved rates, full employment at 97% and the positioning of suezmax and aframax tankers in the spot market that generated an additional $18.4 million in revenue over that achieved, by the same vessels, in the first quarter of 2018.
As market conditions improved, profit share arrangements were activated and generated a further $4.3 million in revenue, said a press release from the transporter of energy in the world owning a versatile fleet of modern crude and product tankers with strong ice-class capabilities, shuttle tankers and liquefied natural gas (LNG) vessels.
In addition, the two LNG carriers produced almost $3.0 million more in revenues compared to the first quarter of 2018 due to the significant rise in their long-term employment rates.
TEN’s fleet averaged $21,054 per day in time charter equivalent earnings compared to $17,771 per day in the first quarter of 2018, an 18.5% increase.
“With cash flow generation clearly better compared to the 2018 first quarter and market dynamics shaping favorably, TEN’s ability to capture the expected market upside remains strong,” George Saroglou, COO of TEN commented.
“TEN’s employment strategy resulting to almost full fleet utilization coupled with the second phase of our fully financed fully employed organic growth, allow us to remain confident for the future and to continue rewarding our shareholders with attractive dividends,” Saroglou concluded.
TEN is in the final stages of its 19-vessel growth program undertaken at competitive levels during the low levels of the cycle. Of these, 15 ships have been successfully delivered, financed and employed on long-term accretive charters to first class end-users.
Within this year and 2020, the remaining four vessels, all fully financed and chartered to major oil concerns for a minimum of five years, will complete the Company’s current expansion and secure revenues going forward.
Concurrently with the above, our strong balance sheet allows management to explore further accretive opportunities in the LNG and Shuttle tanker sector.
The market prospects going forward due to the declining orderbook and IMO 2020 disruptions, places TEN in an ideal position to take advantage of the positive environment that is shaping up.