Tsakos Posts 28-Fold Rise in Quarterly Profit Year on Year

Tsakos Energy Navigation Ltd. (TEN) reported Tuesday $177.458 million in net income for the first quarter, up over 28 times against the same period a year ago on the back of strong charter rates.

The Athens-based energy carrier saw its time chartered equivalent rates, or daily revenue accounting for round-trip expenses, more than double to $41,882 a day from January-March 2022.

It said in a press release “the positive industry fundamentals together with the trade imbalances the war in the Ukraine has created, continues to support a healthy tanker market and allowed TEN - despite operating fewer vessels - to generate gross revenues of $261 million, representing an increase of 74% or $112 million from the same quarter in 2022”.

TEN logged a 96.4 percent fleet utilization and has secured extensions and new charters for 15 vessels. “These recent fixtures raise the total minimum contracted revenue of the fleet to $1.6 billion”, it said.

With cash reserves of $476 million as of March, the New York-listed company said it will continue to redeem preferred shares. A total of 3,517,061 Series D Cumulative Redeemable Perpetual Preferred Shares are scheduled for buyback July, valued nearly $87.93 million, from which TEN expects to save $7.7 million in dividend payments. This buyback would bring its total redeemed preferred shares since 2019 to $188 million with savings of about $16.1 million.

However, TEN reported $1.39 billion in bank debt, though this was $21 million lower compared to the yearend level.

Earning $5.69 per share, it has declared $0.6 in annual dividend per common share, up 140 percent year on year.

“As TEN celebrates 30 years as a public entity, this quarter’s performance highlights the Company’s ability to achieve record profits by adapting its employment and investment policy to take advantage of market circumstances”, TEN said.

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