Tsakos Energy Navigation (TNP) - 2024 Q3 - Quarterly Report

Financial Performance Nine Months 2024 Performance (Ended Sep 30, 2024) TEN Ltd. reported $157.0 million net income on $615.8 million gross revenues for the first nine months of 2024 Nine Months 2024 Key Financial Metrics | Metric | Nine Months 2024 | | :--- | :--- | | Gross Revenues | $615.8 million | | Operating Income | $236.1 million | | Net Income | $157.0 million | | Earnings Per Share (EPS) | $4.62 | | Adjusted EBITDA | $314.1 million | - Fleet utilization was 92.2% due to scheduled dry-docking and repositioning voyages, with an average Time Charter Equivalent (TCE) of $33,390 per ship per day[4][7] - Vessel operating expenses per ship per day decreased by 3.3% to $9,306, driven by efficient management and a modern fleet[8] - Cash reserves remained strong at $385.9 million as of September 30, 2024, even after dividend payments, growth capital, and vessel lease repurchases[11] Third Quarter 2024 Performance (Ended Sep 30, 2024) In Q3 2024, TEN generated over $200 million in revenue, achieving $26.5 million net income Third Quarter Financial Performance Comparison | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Revenue | >$200 million | $186.7 million | | Operating Income | $56.9 million | $53.0 million | | Net Income | $26.5 million | $31.2 million | | Earnings Per Share (EPS) | $0.67 | $0.83 | | Adjusted EBITDA | $100.1 million | $91.6 million | - Fleet utilization reached 92.8% for the quarter, with average TCE per ship per day increasing 3.8% year-over-year to $32,539[16] - Daily vessel operating expenses dropped 10% year-over-year to $9,188 compared to Q3 2023[17] Shareholder Returns Dividend Distribution TEN declared a $0.90 per common share dividend, increasing the total 2024 dividend to $1.50 per share Dividend Declaration Details | Dividend Details | Information | | :--- | :--- | | Dividend per Share | $0.90 | | Total 2024 Dividend | $1.50 | | Increase vs. 2023 | 50% | | Record Date | December 16, 2024 | | Payment Date | December 20, 2024 | - Since its NYSE listing, TEN has maintained uninterrupted dividend distributions for common and preferred shares, totaling $870 million[18] Corporate Strategy and Fleet Development Strategy & Market Outlook Management maintains a positive tanker market outlook, focusing on long-term contracts and strategic asset divestment - The tanker market outlook is promising due to new vessel supply at a 30-year low, increasing global energy demand, and longer ton-miles from geopolitical events[19] - The company's strategy focuses on its industrial shipping model, offering environmentally friendly vessels for long-term contracts to major energy clients[20] - TEN plans to explore divestment opportunities for earlier generation vessels to monetize their full value in the current strong market[23] Fleet Growth and Modernization TEN is actively growing and modernizing its fleet, with 21 vessels contracted or acquired in 2024 - The company is undergoing dynamic fleet growth and renewal, with 21 vessels contracted or acquired in 2024[1][21] - The current diversified energy fleet comprises 74 vessels, including crude, product, and LNG carriers, totaling 8.9 million dwt[26] Newbuilding Program Details | | Type | Expected Delivery | | :--- | :--- | :--- | | 3 | DP2 Shuttle Tanker | Q2 2025 - Q3 2026 | | 2 | Suezmax – Scrubber Fitted | Q2 2025 - Q4 2025 | | 2 | MR – Scrubber Fitted | Q1 2026 | | 5 | Panamax LR1 – Scrubber Fitted | Q2 2027 - Q3 2028 | Appendix: Financial Statements and Data Selected Consolidated Financial and Other Data This section provides unaudited consolidated financial data for the three and nine months ended September 30, 2024 Consolidated Statement of Operations (Nine Months Ended Sep 30) | Statement of Operations (Nine Months Ended Sep 30) | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Voyage revenues | $615,801 | $669,325 | | Operating income | $236,145 | $334,720 | | Net income attributable to Tsakos Energy Navigation | $156,959 | $268,420 | | Earnings per share, basic | $4.62 | $8.19 | Consolidated Balance Sheet Data (in thousands) | Balance Sheet Data (in thousands) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash | $385,901 | $376,694 | | Vessels, net | $2,948,547 | $2,600,021 | | Total assets | $3,713,403 | $3,364,090 | | Debt and other financial liabilities, net | $1,778,816 | $1,562,657 | | Stockholders' equity | $1,748,369 | $1,652,647 | Fleet Operational Data (Nine Months Ended Sep 30) | Fleet Data (Nine Months Ended Sep 30) | 2024 | 2023 | | :--- | :--- | :--- | | Average number of vessels | 61.8 | 59.4 | | Utilization | 92.2% | 95.6% | Non-GAAP Measures Reconciliation This section reconciles Net Income to Adjusted EBITDA, showing $314.1 million for the nine months ended September 30, 2024 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA (in thousands) | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | | Net income attributable to TEN | $156,959 | $268,420 | | Depreciation and amortization | $118,356 | $106,701 | | Interest Expense | $87,407 | $72,893 | | Gain on sale of vessels | ($48,662) | ($81,198) | | Adjusted EBITDA | $314,060 | $366,816 |