Tsakos Power Navigation Ltd. (TEN) has reported $237 million in internet earnings for the primary half of 2023, up almost fivefold from the identical interval in 2022 as robust tanker market circumstances spurred by the Russia-Ukraine battle remained.
“With tanker markets remaining robust, primarily spurred by favorable provide and demand fundamentals and favorable commerce dislocations brought on by the battle within the Ukraine persevering with and with no indicators of abating, TEN, within the first half of 2023, generated voyage revenues of $482.7 million from $366.4 million within the equal interval of 2022 or 32 % larger”, the Athens-based power service mentioned in a latest press launch.
Tsakos’ time constitution equal charges, or each day income accounting for round-trip bills, surged to $40,182 a vessel per day throughout the January-June interval, up 64 % in opposition to the primary half of final yr.
The continued earnings momentum additionally obtained assist from sustained fleet utilization and decrease working bills. “Total, voyage bills throughout the 2023 second quarter fell roughly 38 % from the 2022 second quarter attributable to decrease bunker prices whereas complete vessel working bills remained at about the identical ranges because the 2022 second quarter, as did depreciation and amortization”, the New York-listed firm mentioned.
“Curiosity and finance prices within the second quarter of 2023, persevering with to be impacted by excessive rates of interest globally, settled at $24.3 million, which was additionally mitigated by curiosity earnings reaching $4.1 million from simply $0.2 million in the identical interval of 2022”.
However whereas working in a robust market, Tsakos mentioned it bought eight of its older tankers throughout the first six months of 2023. It mentioned the divestments took benefit of “historic excessive asset costs” and that proceeds would assist it purchase environmentally pleasant replacements. Tsakos has 10 vessels underneath development, together with two anticipated to be delivered within the first quarter of 2026, in keeping with the media launch.
“Constructive fleet efficiency and the free money generated by vessel gross sales, resulted in TEN’s money reserves rising to $534.1 million as at June 30, 2023”, it mentioned.
Whole internet money technology from working actions throughout the first half stood at $258.5 million.
Tsakos enters the second half with $534.09 million in money, in addition to a backlog income of $1.5 billion boosted by new and prolonged time constitution contracts with a mean contract length of three years. It had $1.38 billion in financial institution debt as of June 30.
“The latest urge for food from our main purchasers for accretive long-term enterprise, significantly within the LNG and tanker segments, has given us the consolation to safe over $1.5 billion in ahead revenues and guarantee continuity in offering wholesome returns and elevated dividends to our shareholders,” George Saroglou, president and chief working officer of Tsakos, mentioned in a press release.
Tsakos expects to return $30 million to frequent shareholders for 2023 with two semi-annual funds of $0.3 per unit plus a further particular dividend of $0.4 per share, which collectively quantity to $1 per share, in keeping with the press launch. Earnings per share for the primary half of 2023 stood at $7.34.
The corporate mentioned it continues to redeem most well-liked shares to avoid wasting on dividend funds. It mentioned in its first quarter report a complete of three,517,061 Sequence D Cumulative Redeemable Perpetual Most popular Shares have been scheduled for buyback July, valued almost $87.93 million, from which it anticipated to avoid wasting $7.7 million in dividend funds. In its half-year report Tsakos mentioned, “Within the third quarter of 2023 the Firm redeemed in full $88.0 million of its publicly traded 8.75 % Sequence D Cumulative Redeemable Perpetual Most popular Shares and $19.4 million of a privately positioned perpetual most well-liked instrument, carrying a coupon of seven.50 %, for a complete of $107.4 million with annual money financial savings of over $9.0 million.
“Inclusive of the prior redemptions of Sequence B and Sequence C Perpetual Most popular Shares and privately positioned most well-liked devices, the Firm has, in mixture, redeemed a complete of $211 million of most well-liked shares with annual money financial savings of about $18.0 million”.
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