ATHENS, GREECE--(Marketwired - May 22, 2015) - Tsakos Energy Navigation Limited (NYSE: TNP)


  • Net income of $37.3 million compared to $14.6 million in first quarter 2014 or $0.42 per basic and diluted share
  • EBITDA of $72.0 million, a 46% Year-on-Year increase from first quarter 2014
  • Liquidity at $290 million
  • Time charter equivalent increase to $25,591 per day versus $21,569 per day in first quarter 2014
  • Operating expenses per ship per day decrease to $7,995 versus $8,449 per day in the first quarter of 2014
  • 73% of remaining days in 2015 available today for spot or spot related contracts
  • Fleet utilization of 99.3%
  • Dividend of $0.06 per common share to be paid on May 28, 2015 and new dividend declaration of $0.06 per common share declared for payment on September 10, 2015
  • Pre-delivery financing arrangements complete for total newbuilding program
  • Pro-forma fleet of 64 vessels, totaling 6.7 million dwt, consisting of 44 tankers for trade in the crude space, four shuttle tankers (including one option vessel), 14 tankers carrying products and two LNG vessels

Tsakos Energy Navigation Limited (TEN) (NYSE: TNP) (the "Company") today reported results (unaudited) for the first quarter ended March 31, 2015.

TEN achieved net income of $37.3 million in the first quarter 2015 compared to $14.6 million in the first quarter of 2014, a Year-on-Year increase of 156%.

Basic and diluted earnings per share were $0.42 for the first quarter 2015.

Revenues, net of voyage expenses (bunker, port expenses and commissions), amounted to $114.3 million in the first quarter of 2015, $23.0 million more than in the first quarter of 2014. TEN operated an average of 50.0 vessels in the first quarter of 2015, compared to 48.0 in the prior year's first quarter. The timely new acquisitions being the two suezmax crude carriers, Euro and Eurovision, both delivered to the Company in mid-2014. Fleet utilization was 99.3%, effectively full employment, with only one product carrier entering dry-dock for special-survey purposes in the latter part of the quarter.

The average daily time charter equivalent (TCE) rate (voyage revenue less voyage expenses) was $25,591 compared to $21,569 average TCE earned in the first quarter of 2014, an 18.6% improvement.

Low oil prices also pushed fuel costs down. This contributed to a significant fall in overall voyage expenses compared to the prior first quarter.

Total operating expenses amounted to $36.0 million in the first quarter of 2015, slightly down from $36.5 million in the first quarter of 2014, despite the addition of the two suezmaxes. Average daily operating costs per vessel fell to $7,995 in the first quarter of 2015 as compared to $8,449 and $8,414 in the first and fourth quarters of 2014, respectively.

Operating income was $45.7 million in the first quarter of 2015, compared to $24.5 million in the first quarter of 2014, an increase of 86.5%.

Interest and finance costs in the first quarter amounted $8.5 million, compared to $9.5 million in the first quarter of 2014. Reductions in interest charges, the cost of debt being only 2.0% in the quarter, were offset by the expensing of charges relating to deferred finance projects. Expenses relating to bunker swaps were offset by positive valuations.

Net income before interest, depreciation and amortization (EBITDA) amounted to $72.0 million in the first quarter of 2015, compared to $49.0 million EBITDA in the first quarter of 2014. Apart from the product carrier entering dry-dock, all the vessels generated positive EBITDA in the first quarter of 2015.

Dividend - Common Shares
As previously announced, the Company will pay a dividend of $0.06 per common share on May 28, 2015 to shareholders of record as of May 21, 2015.

In addition, the Company's Board of Directors has declared a dividend of $0.06 per common share outstanding to be paid on September 10, 2015 to shareholders of record as of September 3, 2015. Inclusive of this distribution, TEN will have distributed in total $10.06 per share in dividends to its shareholders since the Company was listed on the NYSE in March 2002.

Corporate Strategy
During the first quarter of the year and with signs of further strengthening so far this quarter, the crude tanker market continues its solid footing fuelled by low oil prices, scarcity of available tonnage, increased oil supplies and the establishment of new and longer trade routes which positively impact worldwide vessel utilization.

With 23 vessels operating on very accretive spot contracts and 10 under profit-sharing arrangements, TEN remains steadfast in its efforts to fully reap the rewards on offer in the crude space (and with the products market not that far behind). With 73% of 2015 available days in spot related or flexible charters and most vessels of the fleet at charters well above all-in breakeven rates, management is confident that TEN's increased earnings will be reflected directly to its bottom line and share price.

This strong positioning on the commercial and financial fronts is now allowing management to closely consider attractive opportunities for growth. As stated in the past, all projects that are accretive to TEN's bottom line are candidates for such consideration in order to further enhance TEN's position in the international tanker markets. In addition, management is also evaluating divestment opportunities, particularly for its first-generation tankers, in order to maintain the young age profile of the fleet, create positive capital gains and generate cash for future investments.

The safe and efficient utilization of the fleet remains of paramount importance to the management and TEN will strive to do its utmost to continue to achieve high levels, irrespective of market cycles, now and in the future.

"The first quarter results and the continuous market strengths give us confidence for a very profitable 2015. Looking ahead, the existing supply-demand equilibrium together with the low price of oil enforces our belief that we are in the midst of, finally, a long term up-cycle in the tanker industry," stated Mr. Nikolas P. Tsakos, President and CEO of TEN and current Chairman of INTERTANKO. "If tanker owners refrain from the speculative newbuilding frenzy of the past, the current positive cycle will be prolonged and will substantially increase shareholder value for the long term," Mr. Tsakos added.

Conference Call
As previously announced, today, Friday, May 22, 2015, 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 May 29, 2015 by dialling 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 ( 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 Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

To date, TEN's fleet, including the LNG carrier Maria Energy, nine Aframax crude oil tankers, a Suezmax DP2 shuttle tanker and two LR1 tankers all under construction, consists of 63 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totalling 6.52 million dwt. Of these, 44 vessels trade in crude, 14 in products, three are shuttle tankers and two LNG carriers. In addition, TEN has an option to construct another Suezmax DP2 shuttle tanker. The average age of its operational fleet is 7.9 years.

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.

Selected Consolidated Financial and Other Data  
(In Thousands of U.S. Dollars, except share and per share data)  
    Three months ended  
    March 31 (unaudited)  
Voyage revenues   $ 148,867     $ 130,288  
Voyage expenses     34,550       39,008  
Vessel operating expenses     35,979       36,500  
Depreciation and amortization     26,088       24,855  
General and administrative expenses     6,554       5,427  
Total expenses     103,171       105,790  
  Operating income     45,696       24,498  
Interest and finance costs, net     (8,487 )     (9,526 )
Interest income     53       46  
Other, net     (3 )     (520 )
Total other expenses, net     (8,437 )     (10,000 )
  Net Income     37,259       14,498  
  Less: Net income attributable to the noncontrolling interest     22       69  
Net Income attributable to Tsakos Energy Navigation Limited   $ 37,281     $ 14,567  
Effect of preferred dividends     (2,109 )     (2,109 )
Net Income attributable to common stockholders of Tsakos Energy Navigation Limited   $ 35,172     $ 12,458  
Earnings per share, basic and diluted   $ 0.42     $ 0.19  
Weighted average number of common shares, basic and diluted     84,712,295       66,644,613  
BALANCE SHEET DATA   March 31     December 31  
    2015     2014  
Cash     209,827       214,441  
Other assets     101,377       96,548  
Vessels, net     2,175,516       2,199,154  
Advances for vessels under construction     231,793       188,954  
  Total assets   $ 2,718,513     $ 2,699,097  
Debt     1,409,363       1,418,336  
Other liabilities     103,593       102,849  
Stockholders' equity     1,205,557       1,177,912  
  Total liabilities and stockholders' equity   $ 2,718,513     $ 2,699,097  
    Three months ended  
    2015     2014  
Net cash from operating activities   $ 55,443     $ 18,763  
Net cash used in investing activities   $ (43,855 )   $ (47,614 )
Net cash (used in)/provided by financing activities   $ (13,925 )   $ 62,945  
TCE per ship per day   $ 25,591     $ 21,569  
Operating expenses per ship per day   $ 7,995     $ 8,449  
Vessel overhead costs per ship per day   $ 1,456     $ 1,256  
      9,451       9,705  
FLEET DATA                
Average number of vessels during period     50.0       48.0  
Number of vessels at end of period     50.0       48.0  
Average age of fleet at end of period Years   7.9       7.3  
Dwt at end of period (in thousands)     5,102       4,786  
Time charter employment - fixed rate Days   1,700       1,763  
Time charter employment - variable rate Days   928       790  
Period employment (pool and coa) at market rates Days   180       90  
Spot voyage employment at market rates Days   1,659       1,589  
  Total operating days     4,467       4,232  
  Total available days     4,500       4,320  
  Utilization     99.3 %     98.0 %
Non-GAAP Measures  
Reconciliation of Net Income to EBITDA  
    Three months ended  
    March 31  
    2015     2014  
Net Income attributable to Tsakos Energy Navigation Limited     37,281       14,567  
Depreciation and amortization     26,088       24,855  
Interest Expense     8,487       9,526  
EBITDA   $ 71,856     $ 48,948  
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. We are using the following Non-GAAP measures:  
(i) TCE which represents voyage revenues less voyage expenses divided by the number of operating days.          
(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 General & Administrative expenses.  
(iv) EBITDA. See in the table above for reconciliation to net income.  
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.                

Contact Information:

For further information please contact:

Tsakos Energy Navigation Ltd.
George Saroglou
Chief Operating Officer
+30210 94 07 710

Investor Relations / Media :
Capital Link, Inc.
Nicolas Bornozis
Paul Lampoutis
+212 661 7566