Today, TEN, Ltd (NYSE: TNP), announced its unaudited financial results for the first quarter that ended March 31, 2023, as reported by Global News Wire.
Q1 2023 summary results
Tanker company TEN (Tsakos Energy Navigation) celebrated its 30th year as a public entity by achieving record profits in the first quarter of 2023. Despite operating fewer vessels, TEN adapted its employment and investment policies to capitalize on market conditions, resulting in gross revenues of $261 million, a 74% increase from the same period in 2022. The company’s operating income reached $199 million, including an $81 million capital gain from the sale of certain tankers. Fleet utilization was strong at 96.4%, and the fleet’s average Time Charter Equivalent (TCE) more than doubled to $41,882 per day. EBITDA exceeded $236 million, contributing to a cash reserve increase of $476 million. Bank debt decreased to $1.39 billion, while interest and finance costs reached $24 million. Daily operating expenses per vessel were $9,213, influenced by seasonal inventory buildup and inflationary pressures. Depreciation and amortization slightly increased due to vessels undergoing dry-docking.
Recent events – new charters
Capitalizing on favourable charter rates and favourable long-term employment opportunities, TEN has successfully secured new charters and extensions for 15 of its vessels, including two LNG carriers. These agreements, comprising both fixed and market-related rates, have increased the minimum contracted revenue of TEN’s fleet to a total of $1.6 billion.
Corporate affairs – dividend
TEN’s Board of Directors has approved the full redemption of its outstanding Series D Cumulative Redeemable Perpetual Preferred Shares, totalling $87.9 million, along with accrued dividends. The redemption is scheduled for July 7, 2023, resulting in annual preferred dividend savings of $7.7 million. This redemption brings the total redeemed preferred shares since 2019 to $188 million, with annual dividend savings of approximately $16.1 million.
TEN will distribute an annual dividend of $0.60 per common share in 2023, with $0.30 to be paid on June 15, 2023, and another $0.30 to be paid in December 2023. This represents a significant increase from the previous year’s dividend of $0.25 per common share. Since its listing on the NYSE in 2002, TEN has paid out over $500 million in dividends to common shareholders. Additionally, subject to favourable market conditions, the Board may consider an extra dividend for common shareholders, with details to be announced separately.
Corporate strategy
TEN is well-positioned to benefit from favourable market conditions due to its successful combination of spot presence, long-term charters, and strong relationships with major oil companies. The company’s cash reserves, generated from vessel operations and asset sales, will support its growth and capital allocation strategies. TEN will continue exploring opportunities to strategically sell vessels while expanding its fleet with a focus on dual-fuel vessels. Debt reduction, strong liquidity, and shareholder dividends remain key aspects of TEN’s approach. Chief Operating Officer George Saroglou expressed confidence in the company’s record performance and anticipated further debt reduction, balance sheet strengthening, and rewarding dividends for shareholders.
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Source: Global News Wire
