Initiation of dual-fuel newbuilding program for up to six tankers chartered to a major oil concern
Timely completion of four-vessel newbuilding program chartered to a US oil major
Half-year revenues of
Total opex decrease irrespective of larger fleet and dry-dockings
Strong cash reserves of
SIX MONTHS 2021 SUMMARY RESULTS
During the first half of 2021 TEN continued its countercyclical growth strategy, taking advantage of the weak markets created by the pandemic.
In addition, and as a result of its balanced strategy with 60% of vessels under secured employment, TEN weathered the impact of market pressures and managed to contain its net loss to
The sale related to the disposal of two suezmax crude tankers, a transaction that generated
Despite the prolonged weak market, gross revenues in the first half of 2021 amounted to
Fleet utilization during the first half of 2021 was at 92.3% as a total of eight vessels underwent dry docking, four of which ahead of schedule in preparation for the anticipated market upturn.
Total vessel operating expenses, reflecting pro-active cost controls, declined from the first half of 2020 and stood at
G&A expenses fell by 5% compared to the first half of 2020.
Depreciation and amortization exhibited slight but anticipated increases, due to the larger number of vessels in the fleet and the aforementioned dry-dockings.
Operating losses, excluding those on vessel sales, were contained to
In line with the Company’s debt reduction strategy, total debt fell by a further
Finance costs in the first six months of 2021 fell by
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) for the first six months of 2021 was at
Cash and cash equivalent levels, despite newbuilding installments in addition to loan repayments during the first six months of 2021, stood at a healthy
Q2 2021 SUMMARY RESULTS
The second quarter of the year mostly followed the first six months in terms of activity and market rates, leading to a loss of
Voyage revenues totaled
Operating expenses increased by a manageable
G&A expenses were again lower when compared to the 2020 second quarter.
Interest and Finance costs declined by 46% to
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) for the second quarter of 2021 reached
SUBSEQUENT EVENTS
Following the successful delivery of four vessels with long term charters to a US oil major, in September of 2021 the Company signed newbuilding contracts for the construction of four to up to six dual-fueled LNG powered aframax tankers against long-term employment to a major oil concern. Assuming all six are built, the expected gross revenues from these contracts could be approximately
DIVIDEND – COMMON SHARES
The Company paid a semi-annual dividend of
ATM PROGRAM
The Company’s ATM program for both preferred shares and common shares has netted
CORPORATE STRATEGY & OUTLOOK
With the pandemic gradually waning, the anticipated alignment of the tanker markets to those of the container and dry bulk sectors is beginning to take shape. The long-awaited resumption of air travel and overall economic activity is setting the foundations for a tanker lift-off. In view of this, we are seeing increased activity from major end-users and in particular long-term business. Such appetite is evidenced across all tanker segments and should result in firmer rates as we move into the winter months. Asset prices seem to have turned the corner as well with inquiries for second-hand tonnage on the rise.
The basic favorable fundamentals that should help propel the sector remain firmly in place. In particular, the low orderbook, the advanced age of the global fleet, the high scrapping prices in the context of increases in oil supplies and the building of new refineries in distant locations. As Covid restrictions are lifted around the globe, the pent-up consumer demand of prior months raises hopes that oil demand could surpass 100 million barrels per day, helped, as in prior years, by Chinese and Indian imports, especially for their strategic petroleum reserves. There are also signs that product trade carriage is beginning to revive.
As we have frequently indicated, our long-term strategy is to always seek opportunities to maintain a young and modern fleet profile, so we continue to dispose of older vessels and replace them with new generation tankers with long-term charters to first-class charterers.
“In the first months of 2021, we experienced the worst tanker market in recent memory. However, the tried and tested balanced employment policy of the Company assisted to somewhat absorb the pressure. Capitalizing on our strong cash balance and access to capital, management continued the countercyclical investment strategy with the ordering of a minimum four up to six new technology dual fuel LNG powered tankers for our top tier clients, the first such investment in our Company’s history. These newbuildings are expected to enhance the Company’s revenue and profit generation capacity and reinforce the Company’s environmental footprint.”
Mr.
CONFERENCE CALL
Today,
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 (
To listen to the archived audio file, visit our website www.tenn.gr and click on Corporate Presentations under our Investors Relations page. The audio replay of the conference call will remain available until
SIMULTANEOUS SLIDES AND AUDIO WEBCAST
There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN's website (www.tenn.gr). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company's corporate website reception page at www.tenn.gr. Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
ABOUT TEN
TEN, founded in 1993 and celebrating this year 28 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 71 double-hull vessels, including one LNG carrier, one suezmax DP2 shuttle tanker and four dual-fuel aframax vessels under construction, constituting a mix of crude tankers, product tankers and LNG carriers, totaling 8.0 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.
For further information, please contact:
Company
COO
+30210 94 07 710
gsaroglou@tenn.gr
Investor Relations / Media
Capital
+212 661 7566
ten@capitallink.com
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES | |||||||||||||||||
Selected Consolidated Financial and Other Data | |||||||||||||||||
(In Thousands of | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
STATEMENT OF OPERATIONS DATA | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Voyage revenues | $ | 136,415 | $ | 190,770 | $ | 275,429 | $ | 369,669 | |||||||||
Voyage expenses | 47,567 | 35,412 | 94,866 | 68,120 | |||||||||||||
Charter hire expense | 6,325 | 5,421 | 12,443 | 10,561 | |||||||||||||
Vessel operating expenses | 46,169 | 42,705 | 87,652 | 88,194 | |||||||||||||
Depreciation and amortization | 35,798 | 34,503 | 70,850 | 69,331 | |||||||||||||
General and administrative expenses | 7,627 | 7,665 | 14,471 | 15,269 | |||||||||||||
Loss on sale of vessels | 5,817 | 4,688 | 5,817 | 3,050 | |||||||||||||
Impairment charges | - | 13,450 | - | 13,450 | |||||||||||||
Total expenses | 149,303 | 143,844 | 286,099 | 267,975 | |||||||||||||
Operating income (loss) | (12,888 | ) | 46,926 | (10,670 | ) | 101,694 | |||||||||||
Interest and finance costs, net | (7,525 | ) | (13,881 | ) | (14,568 | ) | (47,474 | ) | |||||||||
Interest income | 200 | 120 | 327 | 511 | |||||||||||||
Other, net | (80 | ) | 108 | (192 | ) | 517 | |||||||||||
Total other expenses, net | (7,405 | ) | (13,653 | ) | (14,433 | ) | (46,446 | ) | |||||||||
Net income (loss) | (20,293 | ) | 33,273 | (25,103 | ) | 55,248 | |||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 629 | (1,794 | ) | 618 | (2,545 | ) | |||||||||||
Net income (loss) attributable to Tsakos Energy Navigation Limited | $ | (19,664 | ) | $ | 31,479 | $ | (24,485 | ) | $ | 52,703 | |||||||
Effect of preferred dividends | (8,230 | ) | (9,422 | ) | (16,379 | ) | (19,064 | ) | |||||||||
Undistributed income to Series G participants | - | (1,653 | ) | - | (2,219 | ) | |||||||||||
Deemed dividend on partially redeemed Series G convertible preferred shares | - | - | (1,713 | ) | - | ||||||||||||
Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited, basic and diluted | $ | (27,894 | ) | $ | 20,404 | $ | (42,577 | ) | $ | 31,420 | |||||||
Earnings (Loss) per share, basic and diluted | $ | (1.49 | ) | $ | 1.07 | $ | (2.31 | ) | $ | 1.64 | |||||||
Weighted average number of common shares, basic and diluted | 18,660,333 | 19,087,556 | 18,433,070 | 19,105,159 | |||||||||||||
BALANCE SHEET DATA | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Cash | 138,910 | 171,771 | |||||||||||||||
Other assets | 276,500 | 276,362 | |||||||||||||||
Vessels, net | 2,541,952 | 2,615,112 | |||||||||||||||
Advances for vessels under construction | 78,071 | 49,030 | |||||||||||||||
Total assets | $ | 3,035,433 | $ | 3,112,275 | |||||||||||||
Debt, net of deferred finance costs | 1,415,057 | 1,500,357 | |||||||||||||||
Other liabilities | 252,123 | 230,100 | |||||||||||||||
Stockholders' equity | 1,368,253 | 1,381,818 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 3,035,433 | $ | 3,112,275 | |||||||||||||
Three months ended | Six months ended | ||||||||||||||||
OTHER FINANCIAL DATA | |||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net cash from operating activities | $ | 18,159 | $ | 84,624 | $ | 30,585 | $ | 142,079 | |||||||||
Net cash provided by (used in) investing activities | $ | 40,558 | $ | (6,442 | ) | $ | 20,568 | $ | 16,103 | ||||||||
Net cash used in financing activities | $ | (46,705 | ) | $ | (42,482 | ) | $ | (84,014 | ) | $ | (99,400 | ) | |||||
TCE per ship per day | $ | 17,239 | $ | 28,767 | $ | 17,701 | $ | 27,689 | |||||||||
Operating expenses per ship per day | $ | 8,241 | $ | 7,457 | $ | 7,834 | $ | 7,672 | |||||||||
Vessel overhead costs per ship per day | $ | 1,279 | $ | 1,297 | $ | 1,216 | $ | 1,288 | |||||||||
9,520 | 8,754 | 9,050 | 8,960 | ||||||||||||||
FLEET DATA | |||||||||||||||||
Average number of vessels during period | 65.5 | 64.9 | 65.8 | 65.1 | |||||||||||||
Number of vessels at end of period | 65.0 | 64.0 | 65.0 | 64.0 | |||||||||||||
Average age of fleet at end of period | Years | 9.7 | 9.2 | 9.7 | 9.2 | ||||||||||||
Dwt at end of period (in thousands) | 7,209 | 6,961 | 7,209 | 6,961 | |||||||||||||
Time charter employment - fixed rate | Days | 2,054 | 2,412 | 4,021 | 4,923 | ||||||||||||
Time charter employment - variable rate | Days | 1,090 | 1,488 | 2,170 | 3,223 | ||||||||||||
Period employment pool/(coa) at market rates | Days | 317 | 87 | 423 | 176 | ||||||||||||
Spot voyage employment at market rates | Days | 2,085 | 1,669 | 4,372 | 3,090 | ||||||||||||
Total operating days | 5,546 | 5,656 | 10,986 | 11,412 | |||||||||||||
Total available days | 5,964 | 5,908 | 11,904 | 11,851 | |||||||||||||
Utilization | 93.0% | 95.7% | 92.3% | 96.3% | |||||||||||||
Non-GAAP Measures | ||||||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) attributable to Tsakos Energy Navigation Limited | (19,664 | ) | 31,479 | (24,485 | ) | 52,703 | ||||||||||
Depreciation and amortization | 35,798 | 34,503 | 70,850 | 69,331 | ||||||||||||
Interest Expense | 7,525 | 13,881 | 14,568 | 47,474 | ||||||||||||
Loss on sale of vessels | 5,817 | 4,688 | 5,817 | 3,050 | ||||||||||||
Impairment charges | - | 13,450 | - | 13,450 | ||||||||||||
Adjusted EBITDA | $ | 29,476 | $ | 98,001 | $ | 66,750 | $ | 186,008 | ||||||||
The Company reports its financial results in accordance with 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 181 days lost for the second quarter and 376 days for the first half of 2021 and 192 days for the prior year quarter of 2020 and 392 days for first half of 2020, 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) 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. |
Source: Tsakos Energy Navigation
2021 GlobeNewswire, Inc., source