Welcome!

News Feed Item

Tsakos Energy Navigation Reports Financial Results for Nine Months and Third Quarter Ended September 30, 2012

Nine New Charters With Minimum Revenue of $220 Million Over a 2.4 Year Period; Operating Income at $11.9 Million (a 159% Increase)

ATHENS, GREECE -- (Marketwire) -- 11/21/12 -- Tsakos Energy Navigation Limited (NYSE: TNP)

NINE-MONTH HIGHLIGHTS

  • Voyage revenues of $293.7 million
  • Positive EBITDA generated from all operational ships totalling $87.7 million
  • $11.9 million in operating income vs. $4.6 million in nine-months 2011 (159% increase)
  • 24% improvement in the net results, ($24.9) million loss vs. ($32.9) million loss in nine-months 2011
  • Maintained strong balance sheet
  • Nine new charters with minimum revenues of over $220 million and 2.4 years average employment
  • 33 vessels out of a pro-forma fleet of 51 on fixed employment utilization
  • Constant quarterly dividend payments ($0.50 per share in 2012). $9.575 per share in total dividends since NYSE listing in 2002
  • Active fleet utilization of 98% - Maintenance of tight cost control
  • Fleet average age 6.2 years - Agreement to sell two older vessels
  • Further expansion in LNG and shuttle sectors
  • Accretive re-charter of the LNG Neo Energy

Tsakos Energy Navigation Limited (TEN or the "Company") (NYSE: TNP) today reported results (unaudited) for the first nine months of 2012 and third quarter.

NINE MONTH RESULTS
Revenues, net of voyage expenses and commissions, in the first nine months of 2012, totaled $202.4 million, an improvement of $10.6 million over the first nine months of 2011. TEN operated an average of 48.0 vessels as compared with 47.7 vessels in the first nine months of 2011, although the VLCC La Prudencia did not operate in the first nine months of 2012, and the La Madrina operated only for five months. The average daily time charter equivalent rate per vessel was $17,152 compared to $16,146 in the first nine-months of 2011. Voyage expenses were significantly reduced due to the absence of the long repositioning voyages taking place in 2011 and reduced bunker consumption.

Operating costs for the first nine months of 2012 were at $100.8 million. For the nine-months 2012, depreciation and dry-docking amortization costs were $74.9 million compared to $78.5 million in the previous year first nine-months. General and administrative expenses totaled $2.8 million, compared to $3.0 million in the first nine months of 2011.

Interest and finance costs decreased in the first nine months of 2012 to $37.8 million from $38.9 million in the prior nine month period, mainly due to positive non-hedging swap valuation movements.

In the first nine months of 2012, there was a net loss of $24.9 million, compared to a $32.9 million net loss in the prior nine month period.

THIRD QUARTER RESULTS
Revenues, net of voyage expenses and commissions, were $64.2 million in the third quarter of 2012, an increase of 15.5% over the third quarter of 2011, in a market that fell to depressingly low levels as seasonal weakness combined with tanker oversupply forced rates down.

On average, TEN's fleet had 48.0 vessels (including the non-operating VLCCs La Prudencia and La Madrina which are held for sale) versus 47.7 vessels in the prior year quarter. Excluding these two inactive VLCC vessels, fleet utilization remained high at 98%. The average daily time charter equivalent rate per vessel was $16,602 compared to $14,055 in the third quarter of 2011. Rates for all vessel categories were better than those of the third quarter of 2011 except for the suezmaxes where rates achieved by those on spot or profit-share were down, but again this was outweighed by the impact of the LNG carrier, Neo Energy, earning substantially more than in the third quarter of 2011.

There was little change in total operating costs for the third quarter of 2012 at $33.1 million versus the $33.0 million for the third quarter of 2011. Similarly, average daily operating costs per vessel were $7,663 in the third quarter of 2012 compared to $7,681 in the same period of 2011, with higher repair costs due to extra dry-dockings being offset by reductions in most other categories of expense, in part due to a strengthening of the dollar over the Euro by 11.5%. Again, the technical managers were able to achieve cost savings on purchases in a difficult environment while striving to maintain the highest standards in safety and quality of the vessels and the operations.

Depreciation and dry-docking amortization costs totaled $25.2 million in the third quarter of 2012 compared to $27.1 million in the third quarter of 2011, the decrease being mainly due to ending of depreciation following the categorization as held for sale of the two older VLCCS at the end of 2011. Technical and commercial management fees were approximately the same as in the previous third quarter at just under $4.0 million. G&A costs increased by over $200 thousand mainly due to professional fees associated with new growth projects the Company has been investigating.

Interest and finance costs at $11.3 million were nearly 27% less in the third quarter of 2012 than the previous third quarter. This was mainly due to positive swings over the twelve months from the previous valuations of non-hedging interest rate and bunker swaps attained in the third quarter of 2011.

The third quarter of 2012 ended in a net loss of $10.4 million or $0.18 loss per share compared to a net loss of $24.1 million or $0.52 loss per share in the third quarter of 2011.

TEN's liquidity at the end of the third quarter of 2012 remained strong. Total cash and liquid investments amounted to $164 million. Cash flow from net income before depreciation, amortization and finance costs ("EBITDA") was $26.2 million. Despite the very difficult market, apart from the two non-active VLCCs and four other vessels, all the other vessels generated positive EBITDA in the quarter and all active vessels in the nine-months generated positive EBITDA. Total indebtedness since the third quarter of 2011, was reduced by $76 million to September 30, 2012. TEN continues to pay all its debt service obligations as they become due and believes it is capable of maintaining that record.

QUARTERLY DIVIDEND
As announced today, the Board of Directors has declared a quarterly dividend of $0.05 per share payable on December 20, 2012 to shareholders of record as of December 14, 2012. This brings the total dividends for calendar 2012 to $0.50 per share. Inclusive of this distribution, TEN has distributed in total $9.575 per share in dividends to its shareholders since the Company was listed on the NYSE in March 2002.

FLEET STRATEGY & OUTLOOK
Although the third quarter is seasonally the weakest for energy transportation demand, certain glimpses in trading patterns and rates did emerge which offered insights of things that may come. During this quarter, crude tanker spot rates improved somewhat and exhibited a certain stability. On the product side, rates experienced a noticeable uplift thanks to refinery closures in Europe and the US which, coupled with increased refinery capacity in the Far East and notably in Saudi Arabia, India and China produced increased ton-mile demand and hence a healthier market environment.

As freight rates seem to be slowly negotiating themselves out of the doldrums, we enter the expected "strong" fourth quarter of the year in the hope that the sector upturn evident in the prior quarter will eventually return to exhibit signs of a sustainable recovery. The improving supply situation is helping in that direction as the orderbook continues its downward trend. According to Clarkson Research Services, today it stands at 11.7% of the fleet as opposed to 12.6% in June 2012 and 14.4% at end of 2011. By comparison, at end of 2010, the year when shipping rates took an abrupt and severe turn for the worse, the fleet orderbook stood at 22.3%. This declining orderbook is coupled with a healthy oil demand outlook for 2013, 90.5mbpd vs. 89.7mbpd in 2012 according to the International Energy Agency. In addition, special attention should be paid to certain geopolitical events around the world as they tend to increase oil demand and freight rates.

Looking ahead, management remains cautiously optimistic for the medium to long-term outlook of the tanker industry and is of the opinion that shipping will present interesting opportunities for longer term investments. Moreover, the expected delivery of the two shuttle tanker newbuildings just a few months away, the ice-class features in 21 vessels of the fleet particularly with the upcoming winter months in Northern Europe and North America, together with the Company's presence in LNG markets provide the necessary versatility to maintain its long stated objective of healthy shareholder returns including dividend payments.

"High fleet utilization, tight cost control, fleet modernity, our long term employment profile, together with our strong balance sheet have allowed TEN to navigate safely through this market downturn that started in late 2008," stated Mr. George V. Saroglou, Chief Operating Officer of TEN. "Looking ahead, we think the worst is behind us as supply of vessels shrinks while global oil demand continues to increase," Mr. Saroglou concluded.

Conference Call
As previously announced, today 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 this earnings press release.

Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Tsakos" to the operator.

A telephonic replay of the conference call will be available until Wednesday, November 28, 2012 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 90295809#

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 TSAKOS ENERGY NAVIGATION
To date, TEN's pro forma fleet consists of 51 double-hull vessels of 5.5 million dwt. This figure includes one LNG carrier and two DP2 suezmax shuttle tankers under construction totaling 400,000 dwt. It also includes two non operational VLCCs held for sale. TEN's balanced fleet profile is reflected in 23 crude tankers ranging from VLCCs to aframaxes and 26 product carriers ranging from aframaxes to handysize and two LNG carriers. The Company has an option for a third LNG carrier to be declared no later than end November 2012.

TEN's employment profile (operating fleet as of November 21, 2012):

Period Employment - Fixed, fixed w/profit share & min max (27)
Pool - market related (4)
Spot - market related (15)

TEN's current newbuilding program:

  • Suezmax Shuttle DP2 157,000dwt Q1 2013
  • Suezmax Shuttle DP2 157,000dwt Q2 2013
  • LNG TBN 86,000dwt/162,000 cbm Tri-Fuel Q1 2015
  • LNG TBN 86,000dwt/162,000 cbm Tri-Fuel Q4 2015 (option)

(All vessels are Double Hull -- Option vessel technical specs subject to change depending on charterer/employment)

Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and in Section 21E of the Securities Exchange Act of 1934, as amended). Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. Statements contained in this press release are based upon information presently available to the Company and assumptions that the Company believes to be reasonable. The Company is not assuming any duty to update this information should those facts change or should the Company no longer believe the assumptions to be reasonable. These statements are subject to risks and uncertainties, including without limitation, general market conditions, the market for the Company's common shares, the performance of the Company's business and other risks detailed from time-to-time in the Company's filings with the Securities and Exchange Commission.




             TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
               Selected Consolidated Financial and Other Data
      (In Thousands of U.S. Dollars, except share and per share data)

                            Three months ended         Nine months ended
                               September 30              September 30
                         ------------------------  ------------------------
STATEMENT OF OPERATIONS
 DATA                        2012         2011         2012         2011
                         -----------  -----------  -----------  -----------

Voyage revenues          $    92,409  $    93,862  $   293,686  $   294,367
                         -----------  -----------  -----------  -----------

Commissions                    3,375        3,399        8,548       10,473
Voyage expenses               24,812       34,849       82,700       92,090
Vessel operating
 expenses                     33,146       32,978      100,796       97,712
Depreciation                  23,948       25,859       71,317       74,945
Amortization of deferred
 dry-docking costs             1,266        1,271        3,534        3,572
Management fees                3,967        3,879       11,926       11,698
General and
 administrative expenses       1,048          811        2,831        3,004
Stock compensation
 expense                           0           73          168          774
Foreign currency
 (gains)/losses                   71         (139)         (48)         500
Net gain on sale of
 vessels                           -            -            -       (5,001)
                         -----------  -----------  -----------  -----------
Total expenses                91,633      102,980      281,772      289,767
                         -----------  -----------  -----------  -----------

                         -----------  -----------  -----------  -----------
  Operating income /
   (Loss)                        776       (9,118)      11,914        4,600
                         -----------  -----------  -----------  -----------

Interest and finance
 costs, net                  (11,348)     (15,502)     (37,758)     (38,872)
Interest income                  243          779        1,121        1,967
Other, net                        (6)         (74)         (25)        (205)
                         -----------  -----------  -----------  -----------
Total other expenses,
 net                         (11,111)     (14,797)     (36,662)     (37,110)
                         -----------  -----------  -----------  -----------
  Net loss                   (10,335)     (23,915)     (24,748)     (32,510)

    Less: Net income
     attributable to the
     noncontrolling
     interest                    (24)        (145)        (115)        (395)
                         -----------  -----------  -----------  -----------
Net loss attributable to
 Tsakos Energy
 Navigation Limited      $   (10,359) $   (24,060) $   (24,863) $   (32,905)
                         ===========  ===========  ===========  ===========


Loss per share, basic    $     (0.18) $     (0.52) $     (0.48) $     (0.71)
Loss per share, diluted  $     (0.18) $     (0.52) $     (0.48) $     (0.71)
Weighted average number
 of shares
  Basic                   56,293,237   46,153,987   52,295,812   46,106,185
  Diluted                 56,293,237   46,153,987   52,295,812   46,106,185




BALANCE SHEET DATA                  September 30  December 31   September 30
                                        2012          2011          2011
                                   -------------  -----------  -------------
Cash, restricted cash and
 marketable securities                   164,275      184,226        237,960
Other assets                             126,630      119,115         84,049
Vessels, net                           2,124,215    2,194,360      2,301,955
Advances for vessels under
 construction                             88,939       37,636         19,060
                                   -------------  -----------  -------------
  Total assets                     $   2,504,059  $ 2,535,337  $   2,643,024
                                   =============  ===========  =============

Debt                                   1,472,117    1,515,663      1,547,746
Other liabilities                         85,945      100,516        118,848
Stockholders' equity                     945,997      919,158        976,430
                                   -------------  -----------  -------------
  Total liabilities and
   stockholders' equity            $   2,504,059  $ 2,535,337  $   2,643,024
                                   =============  ===========  =============



                                  Three months ended     Nine months ended
OTHER FINANCIAL DATA                 September 30          September 30
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
Net cash from operating
 activities                      $   4,824  $   5,024  $  39,457  $  40,641
Net cash (used in)/from
 investing activities            $ (50,574) $ (17,442) $ (53,056) $ (49,526)
Net cash (used in)/from
 financing activities            $ (15,636) $  15,988  $ (10,816) $ (36,710)

TCE per ship per day             $  16,602  $  14,055  $  17,152  $  16,146

Operating expenses per ship per
 day                             $   7,663  $   7,681  $   7,825  $   7,663
Vessel overhead costs per ship
 per day                         $   1,136  $   1,086  $   1,135  $   1,189
                                 ---------  ---------  ---------  ---------
                                     8,799      8,767      8,960      8,852



FLEET DATA

Average number of vessels during
 period                                     48.0     47.7     48.0     47.7
Number of vessels at end of
 period                                     48.0     48.0     48.0     48.0
Average age of fleet at end of
 period                           Years      7.8      6.8      7.8      6.8
Dwt at end of period (in
 thousands)                                5,073    5,073    5,073    5,073

Time charter employment - fixed
 rate                              Days    1,256      930    3,620    2,540
Time charter employment -
 variable rate                     Days    1,399    1,675    4,196    5,192
Period employment (pool and coa)
 at market rates                   Days      388      577    1,458    1,992
Spot voyage employment at market
 rates                             Days    1,084    1,082    3,187    2,973
                                         -------  -------  -------  -------
  Total operating days                     4,127    4,264   12,461   12,697
  Total available days                     4,416    4,384   13,152   13,015
  Utilization                               93.5%    97.3%    94.7%    97.6%
  Utilization (excluding La
   Madrina and La Prudencia)                97.5%             97.6%

TCE represents voyage revenue less voyage expenses. Commission is not
deducted.
Operating expenses per ship per day exclude the vessel bare-boat chartered
out.
Vessel overhead costs include Management fees, General & Administrative
expenses and Stock compensation expense.
EBITDA (earnings before interest, taxes, net gain on sale of vessels,
depreciation and amortization) is a non-GAAP metric used within the
financial community for evaluating and comparing the performance of
companies.
The Company does not incur corporation tax.


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.