200% Increase in Operating Income before impairments Y-o-Y
Very Firm Current Rates - Market Long Fundamentals Favorable
Initiating
2019 YEAR RESULTS
In 2019, TEN produced profits of
Operating income reached
Adjusted EBITDA totaled
The average daily time charter equivalent rate per vessel climbed to almost
Excluding impairment charges, in nearly all expense categories, the numbers were almost the same as in 2018, except for depreciation which decreased due to the sale of vessels and impairments at the end of 2018. Average daily operating expenses remained stable at about
The outstanding loan balance decreased to
FOURTH QUARTER 2019 RESULTS
In the fourth quarter of 2019,
Operating income in the fourth quarter, before non-cash impairment charges, amounted to
Adjusted EBITDA increased by 36% to
This substantial and material improvement in fourth quarter net income results was mostly due to gross revenues increasing by
The increase in revenue was due to a greatly improved crude tanker market during the quarter, in which 16 vessels operating in spot trades enjoyed the strongest rates seen in the last five years, as oil demand strengthened and oil supplies increased, especially from the
In addition, the two LNG carriers Neo Energy and Maria Energy, again earned higher rates in the fourth quarter of 2019 than in the 2018 fourth quarter, by 45% and 58% respectively.
Our fleet of 65 operating vessels achieved again high utilization rates, averaging 98.4%, with only one vessel in dry-dock for just part of the quarter.
Expenses incurred by the Company in the fourth quarter were relatively stable in all categories compared to the 2018 fourth quarter. Voyage expenses, however, experienced a 22% reduction much due to lower bunker costs. Total operating costs remained almost the same at
G&A expenses remained at
Interest and finance costs were down by nearly half that of the 2018 fourth quarter, falling to
Dividend (Common Shares) and Stock Buyback
The Company will pay a dividend of
Corporate Strategy& Outlook
In hindsight, 2019 looks now a very normal year regardless of its rollercoaster market changes. In today’s turbulent environment, TEN maintains its steady course navigating unprecedented challenges with success. With oil prices collapsing the demand for inventory build-up and transportation services is booming. TEN with its flexible employment model is taking advantage of that to the full. The increasing floating storage of oil and the developing contango following the precipitous decline in the price of crude, has led to a reduction in fleet capacity which should assist in maintaining the strong rates currently in evidence.
“As the impact of the coronavirus is being felt around the globe, TEN’s business model is able not only to sustain such shocks, but also profit from them as well. Our long-established strategy of providing downside protection and upside potential is working well and we remain confident that we will continue taking advantage of the strong freight environment while offering investors healthy returns,” Mr.
CONFERENCE CALL
As previously announced, today,
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 877 55 39962 (US Toll Free Dial In), 0808 2380 669 (
A telephonic replay of the conference call will be 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.
TEN’s Growth Program | |||||
# | Type | Delivery | Status | Employment | |
1 | HN8041 | Suezmax | Q3 2020 | Under Construction | Yes |
2 | HN8042 | Suezmax | Q4 2020 | Under Construction | Yes |
3 | HN3157 | LNG | Q4 2021 | Under Construction | Under Discussion |
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.
ABOUT
TEN, founded in 1993 and celebrating this year 27 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 68 double-hull vessels including two suezmax tankers and one LNG carrier under construction, constituting a mix of crude tankers, product tankers and LNG carriers, totaling 7.4 million dwt.
For further information please contact:
Company
+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 | Year ended | |||||||||||||||||
STATEMENT OF OPERATIONS DATA | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Voyage revenues | $ | 175,386 | $ | 153,755 | $ | 597,452 | $ | 529,879 | ||||||||||
Voyage expenses | 28,914 | 34,790 | 125,802 | 125,350 | ||||||||||||||
Charter hire expense | 2,728 | 2,719 | 10,822 | 10,822 | ||||||||||||||
Vessel operating expenses | 46,070 | 45,428 | 180,233 | 181,693 | ||||||||||||||
Depreciation and amortization | 35,359 | 37,225 | 139,424 | 146,798 | ||||||||||||||
General and administrative expenses | 7,321 | 7,261 | 27,696 | 27,032 | ||||||||||||||
Loss on sale of vessels | - | - | - | 364 | ||||||||||||||
Impairment charges | 27,613 | 65,965 | 27,613 | 65,965 | ||||||||||||||
Total expenses | 148,005 | 193,388 | 511,590 | 558,024 | ||||||||||||||
Operating income (loss) | 27,381 | (39,633 | ) | 85,862 | (28,145 | ) | ||||||||||||
Interest and finance costs, net | (13,735 | ) | (26,226 | ) | (74,723 | ) | (76,809 | ) | ||||||||||
Interest income | 456 | 832 | 3,694 | 2,507 | ||||||||||||||
Other, net | (791 | ) | 1,730 | (825 | ) | 1,405 | ||||||||||||
Total other expenses, net | (14,070 | ) | (23,664 | ) | (71,854 | ) | (72,897 | ) | ||||||||||
Net income (loss) | 13,311 | (63,297 | ) | 14,008 | (101,042 | ) | ||||||||||||
Less: Net (income) loss attributable to the noncontrolling interest | (194 | ) | 148 | 1,118 | 1,839 | |||||||||||||
Net income (loss) attributable to | $ | 13,117 | $ | (63,149 | ) | $ | 15,126 | $ | (99,203 | ) | ||||||||
Effect of preferred dividends | (9,788 | ) | (10,204 | ) | (40,400 | ) | (33,763 | ) | ||||||||||
Deemed dividend on Series B preferred shares | - | - | (2,750 | ) | - | |||||||||||||
Net income (loss) attributable to common stockholders of | $ | 3,329 | $ | (73,353 | ) | $ | (28,024 | ) | $ | (132,966 | ) | |||||||
Earnings (Loss) per share, basic and diluted | $ | 0.04 | $ | (0.84 | ) | $ | (0.32 | ) | $ | (1.53 | ) | |||||||
Weighted average number of common shares, basic and diluted | 90,510,341 | 87,604,645 | 88,757,923 | 87,111,636 | ||||||||||||||
BALANCE SHEET DATA | ||||||||||||||||||
2019 | 2018 | |||||||||||||||||
Cash | 197,770 | 220,526 | ||||||||||||||||
Other assets | 261,607 | 138,924 | ||||||||||||||||
Vessels, net | 2,633,251 | 2,829,447 | ||||||||||||||||
Advances for vessels under construction | 61,475 | 16,161 | ||||||||||||||||
Total assets | $ | 3,154,103 | $ | 3,205,058 | ||||||||||||||
Debt, net of deferred finance costs | 1,534,296 | 1,595,601 | ||||||||||||||||
Other liabilities | 147,488 | 102,680 | ||||||||||||||||
Stockholders' equity | 1,472,319 | 1,506,777 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 3,154,103 | $ | 3,205,058 | ||||||||||||||
Three months ended | Year ended | |||||||||||||||||
OTHER FINANCIAL DATA | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net cash from operating activities | $ | 62,976 | $ | 39,000 | $ | 184,349 | $ | 73,945 | ||||||||||
Net cash used in investing activities | $ | (41,908 | ) | $ | (5,552 | ) | $ | (102,205 | ) | $ | (179 | ) | ||||||
Net cash used in financing activities | $ | (302 | ) | $ | (45,490 | ) | $ | (104,900 | ) | $ | (55,913 | ) | ||||||
TCE per ship per day | $ | 25,576 | $ | 21,439 | $ | 21,378 | $ | 18,226 | ||||||||||
Operating expenses per ship per day | $ | 7,828 | $ | 7,715 | $ | 7,716 | $ | 7,745 | ||||||||||
Vessel overhead costs per ship per day | $ | 1,228 | $ | 1,233 | $ | 1,182 | $ | 1,152 | ||||||||||
9,056 | 8,948 | 8,898 | 8,897 | |||||||||||||||
FLEET DATA | ||||||||||||||||||
Average number of vessels during period | 64.8 | 64.0 | 64.2 | 64.3 | ||||||||||||||
Number of vessels at end of period | 65.0 | 64.0 | 65.0 | 64.0 | ||||||||||||||
Average age of fleet at end of period | Years | 9.1 | 8.2 | 9.1 | 8.2 | |||||||||||||
Dwt at end of period (in thousands) | 7,051 | 6,936 | 7,051 | 6,936 | ||||||||||||||
Time charter employment - fixed rate | Days | 2,647 | 2,660 | 9,737 | 9,600 | |||||||||||||
Time charter employment - variable rate | Days | 1,733 | 1,288 | 6,550 | 6,464 | |||||||||||||
Period employment (coa) at market rates | Days | 169 | 224 | 799 | 1,215 | |||||||||||||
Spot voyage employment at market rates | Days | 1,313 | 1,501 | 5,456 | 5,294 | |||||||||||||
Total operating days | 5,862 | 5,673 | 22,542 | 22,573 | ||||||||||||||
Total available days | 5,960 | 5,888 | 23,432 | 23,460 | ||||||||||||||
Utilization | 98.4 | % | 96.3 | % | 96.2 | % | 96.2 | % | ||||||||||
Non-GAAP Measures | ||||||||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net income (loss) attributable to | 13,117 | (63,149 | ) | 15,126 | (99,203 | ) | ||||||||||||
Depreciation and amortization | 35,359 | 37,225 | 139,424 | 146,798 | ||||||||||||||
Interest Expense | 13,735 | 26,226 | 74,723 | 76,809 | ||||||||||||||
Loss on sale of vessel | - | - | - | 364 | ||||||||||||||
Impairment charges | 27,613 | 65,965 | 27,613 | 65,965 | ||||||||||||||
Adjusted EBITDA | $ | 89,824 | $ | 66,267 | $ | 256,886 | $ | 190,733 | ||||||||||
The Company reports its financial results in accordance with | ||||||||||||||||||
(i) TCE which represents voyage revenue less voyage expenses is divided by the number of operating days less 107 days lost for the fourth quarter of 2019 and 446 for the year of 2019 as a result of calculating revenue on a loading to discharge basis, compared to 124 for the fourth quarter of 2018 and 378 for the year of 2018. | ||||||||||||||||||
(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:
2020 GlobeNewswire, Inc., source