Financial Data and Key Metrics Changes - Tsakos Energy Navigation reported a net income of $64.5 million for the first half of 2025, equating to $1.70 per share, compared to a net income of $26.8 million or $0.67 per share for the second quarter of 2025 [22][24] - Adjusted EBITDA for the first half of 2025 was $193.2 million, while for the second quarter it was approximately $94 million [22][24] - The company generated $390 million in gross revenues during the first half of 2025, averaging $30,754 per ship per day, compared to $415 million in the first half of 2024 [18][19] Business Line Data and Key Metrics Changes - The company secured charters increased by about 14% in the first half of 2025, while spot contracts declined by about 27% [17] - Fleet utilization increased from 91.9% in the first half of 2024 to 96.9% in the first half of 2025 [18] - The fleet generated $193 million of gross revenues in the second quarter of 2025, equating to $30,767 per vessel per day [23] Market Data and Key Metrics Changes - The tanker market remains healthy, with energy majors continuing to approach the company for tanker charter business [10] - The company has a total fleet contracted revenue backlog of approximately $3.7 billion, equating to more than $120 per share [10] - The company is one of the largest transporters of energy globally, with a pro forma fleet of 82 vessels [10] Company Strategy and Development Direction - The company is focusing on renewing its fleet by selling older vessels and replacing them with new, environmentally friendly ships [4][7] - Tsakos Energy Navigation has ordered three new VLCCs with scrubbers and has an option for one more, aiming to fill a gap in its fleet [4][10] - The company emphasizes maintaining a young fleet and has divested 17 older vessels while acquiring 33 modern vessels with a significantly higher deadweight capacity [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy market, anticipating solid results in the near future [45] - The company is navigating a challenging environment with sanctions and tariffs but remains confident in its operational model [8][9] - Management noted that the market does not fully appreciate the company's contracted revenue, indicating potential for stock value appreciation [49] Other Important Information - The company has a solid balance sheet with a fair market value of the fleet at $3.8 billion against $1.8 billion in debt, leading to a net debt-to-cap ratio of around 42% [15] - The company paid its first dividend in July 2025 and plans to announce the next dividend in November [9][49] Q&A Session Summary Question: Can you talk about the new build orders for the VLCCs? - The company is always looking for good quality vessels in the open market but decided to proceed with new builds due to favorable conditions and the need for environmentally friendly vessels [28][30] Question: Have you exercised the option for the VLCC new builds? - Yes, the company opted for the option and secured an additional option for more vessels, indicating a strong market for VLCCs [32] Question: Can you preview the second half dividend? - It is early to provide specifics, but the company expects to declare a healthy dividend based on market conditions [34] Question: Any progress on restructuring the company? - The company is not restructuring but is exploring ways to enhance shareholder value and efficiency [36][38] Question: What is the direction of OpEx and G&A for the second half of the year? - The company is focused on maintaining operating expenses under control despite inflation, aiming to keep them competitive [40]