Tanker fleet proprietor Tsakos Power Navigation Ltd. (TEN) on Tuesday reported $100.1 million in adjusted EBITDA for the third quarter, up from $91.6 million for a similar interval final 12 months as a decrease price-induced enhance in petroleum volumes headed to China boosted income.
“Throughout the summer season months of 2024, decrease oil costs steered an upsurge in Chinese language oil imports that facilitated stockpiling and acted as a catalyst for the restoration of tanker spot charges”, the Athens-based firm mentioned in an announcement. “This resurgence additionally reinvigorated demand for secondhand tonnage, reinforcing market dynamics and bolstering general sector efficiency.
“To this impact, TEN’s fleet, 43 % of which operated beneath market-related contracts, generated over $200 million in income and achieved an working earnings of $56.9 million within the third quarter of 2024, in comparison with $186.7 million and $53.0 million respectively for a similar interval in 2023”.
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TCE per ship per day averaged over $32,500, up 3.8 % year-on-year. Fleet utilization stood at 92.8 %. Three vessels underwent scheduled dry dockings.
Working actions generated $59.66 million in internet money, up from $44.57 million for the 2023 corresponding interval.
Nonetheless, internet revenue fell to $26.54 million for the July–September quarter in comparison with $31.23 million for the comparable interval final 12 months largely because of greater depreciation prices ensuing from “the upper quantity and bigger dimension of vessels within the fleet”. Earnings per share got here at $0.67.
TEN closed decrease by 4.88 % at $18.9 on the New York Inventory Alternate (NYSE) on Tuesday.
TEN paid down debt by $155.9 million within the first 9 months of 2024. “[T]otal debt and different monetary liabilities reached $1.8 billion, consistent with the expansion the fleet skilled from the identical nine-month interval in 2023, towards a ebook worth of $3 billion”, the corporate acknowledged.
“Whole finance prices for the primary 9 months of 2024 amounted to $87.4 million, principally because of the persevering with greater international rates of interest and elevated loans to help development, in comparison with the 2023 equal interval”.
TEN held $386 million in money on the finish of the third quarter. Throughout the first 9 months of 2024 money drawdowns consisted of $258 million in frequent and most popular dividends, development capital and the repurchase of two vessel lease choices.
TEN declared $0.9 in dividends per frequent share, elevating the full fee for 2024 to $1.5, up by half towards final 12 months’s distribution. “Since its itemizing on NYSE, TEN maintains an uninterrupted dividend distribution for each frequent and most popular shares, totaling $870 million”, it mentioned.
Seeing a “promising” future for a “high-barrier-to-entry sector”, TEN is increasing its fleet with 21 ships acquired or contracted this 12 months.
“In an atmosphere the place new vessel provide is at its lowest level for 30 years, tanker market prospects look promising for the close to future”, it mentioned. “This, in a backdrop of accelerating international vitality demand, permits corporations with fashionable diversified fleets and versatile employment constructions to capitalize on the rising urge for food of vitality majors for long-term contracts at wholesome and accretive charges.
“The absence of a transparent path on future environmental engine propulsion, coupled with longer ton miles, because of geopolitical occasions, add to the optimistic atmosphere”.
Whereas pursuing fleet development, it additionally plans to promote older vessels “and in that method monetize the complete worth of the property the present market atmosphere is offering for”.
At the moment TEN has 74 ships. It has 12 ships beneath building and scheduled for supply between 2025 and 2028.
To contact the creator, electronic mail jov.onsat@rigzone.com
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