Core Points - TEN Ltd. has received the 'Best Deal' Award for its significant expansion into the shuttle tanker market, highlighting its growth and recognition in the industry [1][2] - The company currently operates a pro-forma fleet of 16 vessels, with 10 under construction in South Korea, positioning itself as one of the largest shuttle tanker owners globally [1][3] - TEN has a revenue backlog of approximately $3.0 billion, indicating strong future earnings potential [1] Company Overview - Founded in 1993, TEN Ltd. has established itself as one of the first public shipping companies, celebrating 32 years in the industry [3] - The company's diversified energy fleet consists of 82 vessels, including ten DP2 shuttle tankers, three VLCCs, and various product tankers, totaling approximately 11 million deadweight tonnage (dwt) [3]

Financial Data and Key Metrics Changes - The fleet-wide time charter equivalent was approximately $47,000 per vessel per day, with VLCCs at nearly $46,000 and Suezmaxes at $48,000 [2][4] - Adjusted EBITDA for the quarter was $45.2 million, adjusted net profit was $24.7 million, and adjusted EPS was $0.77 [2][4] - Total distributions over the last four quarters amounted to $2.12 per share, representing about 90% of earnings for the period [3] Business Line Data and Key Metrics Changes - The company reported TC revenue for the nine months at $172.5 million, with EBITDA close to $125 million and reported net income exceeding $63.5 million [4] - The average age of the fleet is six years, with a total of 14 vessels, including six Suezmaxes and eight VLCCs [5] Market Data and Key Metrics Changes - The company achieved near-perfect fleet utilization, with VLCCs earning $45,500 and Suezmaxes at $48,200 per day [9] - As of the call, 80% of VLCC spot days were fixed at $88,100 per day, and 48% of Suezmax days at $60,800 per day, leading to a fleet-wide average of $80,700 per day [11] Company Strategy and Development Direction - The company focuses on maximizing shareholder value through consistent dividend distributions, having declared a dividend of $0.75 per share for the quarter [2][3] - The management emphasized the importance of maintaining a young, eco-friendly fleet to outperform in a tightening market [18][25] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in a strong Q4, with rates continuing to strengthen and a bullish outlook for the tanker market driven by increased cargo flows and tightening sanctions [13][19] - The company noted that the effective supply of compliant crude is manageable, with OPEC Plus underproducing its quota [19][20] Other Important Information - The company has successfully refinanced its vessels, improving margins by 155 basis points since 2023, which translates to an annual benefit of about $8 million at current debt levels [6][39] - The management highlighted that over 40% of the global VLCC and Suezmax fleet is over 15 years old, indicating a shrinking compliant fleet [15][21] Q&A Session Summary Question: How do you see time charter opportunities now? - The management noted that the strength of the market has caught many charters off guard, and while there are opportunities for time charters, rates need to increase significantly for long-term deals to make sense [28][29] Question: Can you discuss your strategy regarding investments in today's market? - The focus remains on paying dividends, with the most attractive investments being assets that can deliver quickly. The management emphasized a cautious approach to selecting opportunities [31][34] Question: What are your thoughts on scaling into VLCCs and Suezmaxes? - The management indicated a preference for VLCCs and Suezmaxes, stating that they could comfortably grow the fleet without impacting trading strategies [33][35] Question: Will you continue trading clean or revert to crude? - The management plans to revert to crude trading after discharging current clean cargoes, as the crude market remains strong [37] Question: What opportunities do you see along the capital structure? - The management highlighted the successful refinancing efforts and the potential for further improvements in capital structure as market conditions remain favorable [39]

Financial Data and Key Metrics Changes - The company reported a net income of $64.5 million or $1.70 per share for the first half of 2025, compared to a net income of $49 million in the same period of 2024 [23][22] - Adjusted EBITDA for the first six months of 2025 was $193.2 million, reflecting a strong operational performance despite a slight decrease in gross revenues to $390 million from $415 million in the first half of 2024 [23][19] - The net debt-to-capital ratio stood at 43.6%, with total debt net of cash at $1.4 billion [23][22] Business Line Data and Key Metrics Changes - The company secured charters increased by about 14% while spot contracts declined by about 27% in the first half of 2025 [18] - Fleet utilization increased from 91.9% in the first half of 2024 to 96.9% in the first half of 2025, indicating improved operational efficiency [19] - The fleet generated $193 million of gross revenues in Q2 2025, averaging $30,767 per vessel per day, a slight increase from the previous year [24][25] 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][11] - 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] - The strategy includes increasing the number of VLCCs in the fleet to fill a previously identified gap [4][10] - The company aims to maintain a competitive edge by building vessels at top shipyards and ensuring a young, modern fleet [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tanker market, anticipating solid results in the near future due to increasing global demand [46][47] - The company is navigating challenges posed by sanctions and geopolitical events, which have positively affected the tanker market [8][17] - Management highlighted the importance of maintaining a strong balance sheet and cash reserves to support future growth [16][22] Other Important Information - The company has sold 17 older vessels and replaced them with 33 modern vessels, significantly increasing deadweight capacity [16] - The company is currently one of the largest owners of dual-fuel LNG-powered Aframax tankers, with six vessels in operation [17] - The company plans to announce its next dividend in November, with expectations of a healthy payout [9][35] Q&A Session Summary Question: Discussion on new build orders for VLCCs - The company decided to proceed with new builds due to the strong second-hand market and the need for environmentally friendly vessels [30] Question: Clarification on exercising options for VLCC new builds - The company has exercised the option for additional vessels and is in the process of renewing existing VLs with increased rates [33] Question: Preview of second half dividend - It is too early to provide specifics, but the company is looking at a healthy market for potential dividends [35] Question: Comments on potential restructuring - The company is not restructuring but is exploring ways to enhance shareholder value [37] Question: Direction of OpEx and G&A for the second half - The company aims to maintain operating expenses under control despite inflation pressures [40]

Financial Data and Key Metrics Changes - The company reported a net income of $64.5 million or $1.70 per share for the first half of 2025, compared to a net income of $49 million in the same period of 2024 [23][22] - Adjusted EBITDA for the first six months of 2025 was $193.2 million, reflecting a strong operational performance [23] - The total fleet contracted revenue backlog is approximately $3.7 billion, equating to more than $120 per share [10] Business Line Data and Key Metrics Changes - The company secured charters increased by about 14% while spot contracts declined by about 27% in the first half of 2025 [18] - Fleet utilization increased from 91.9% in the first half of 2024 to 96.9% in the first half of 2025 [19] - The fleet generated $390 million of gross revenues during the first half of 2025, averaging $30,754 per ship per day [19] 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 pro forma fleet of 82 vessels, indicating growth and resilience in the face of market challenges [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] - The strategy includes increasing the number of VLCCs in the fleet to fill a previously identified gap [4][12] - The company aims to maintain a competitive edge by building vessels at top shipyards and ensuring a young, modern fleet [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tanker market, anticipating solid results in the near future due to increasing global demand [46][47] - The company is navigating challenges such as sanctions and geopolitical events, which have positively affected the tanker market [17] - Management highlighted the importance of maintaining a strong balance sheet and cash reserves to support future growth [16] Other Important Information - The company has sold 17 older vessels and replaced them with 33 modern vessels, significantly increasing deadweight capacity [16] - The company is one of the largest owners of dual-fuel LNG-powered Aframax tankers, indicating a commitment to greener operations [17] Q&A Session Summary Question: Can you talk about the new build orders for the VLCCs? - The company is building new vessels in Korea and Japan, focusing on environmentally friendly designs and maintaining competitive operating expenses [30][31] Question: Have you exercised the option for the VLCC new builds? - Yes, the company has opted for the option and is in the process of renewing existing VLs with increased base rates and profit-sharing arrangements [33] 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 [35] Question: Any progress on restructuring the company? - The company is not restructuring but is exploring ways to enhance shareholder value and improve market perception [37][38] Question: Direction of OpEx and G&A over the second half of the year? - The company is focused on maintaining operational efficiency and controlling expenses despite inflationary pressures [40]

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]

Core Insights - TEN, Ltd reported strong financial results for the first half of 2025, with gross revenues of $390.4 million and net income of $64.5 million, translating to earnings of $1.70 per share [3][6] - The tanker market fundamentals remain robust, supported by rising global oil demand and low inventories, despite challenges from global tariffs and geopolitical tensions [12][13][14] - The company has secured minimum contracted revenue of $3.7 billion, indicating strong future earnings potential [16] Financial Performance - For the first half of 2025, TEN's adjusted EBITDA was $193.2 million, with operating income of approximately $111.0 million [3][6] - In Q2 2025, gross revenues reached $193.3 million, with adjusted EBITDA of $93.9 million and net income of $26.8 million, or $0.67 per share [6][7] - Fleet utilization increased to 96.9% in the first half of 2025, reflecting a higher number of vessels under term contracts [3][28] Operating Metrics - The average Time Charter Equivalent (TCE) per vessel per day for the first half of 2025 was $30,754, remaining healthy despite modest increases in vessel operating expenses [4][6] - Vessel operating expenses rose to $102.3 million, with total operating expenses per vessel per day at $9,743 [4][5] - The fleet's voyage expenses decreased by $15.4 million, settling at $68.0 million [4] Corporate Strategy and Developments - TEN is expanding its fleet with 21 new buildings under construction, including three new VLCC orders, while divesting older vessels [1][9][15] - The company has consistently rewarded shareholders, distributing over $900 million in dividends since its NYSE listing in 2002, with a semi-annual dividend of $0.60 per share paid in July 2025 [11][20] - Geopolitical tensions are influencing seaborne trade flows, which may impact vessel availability and market dynamics [14][15] Future Outlook - The company remains confident in its strategy to grow its fleet and maintain a modern, efficient operation, with a focus on specialized vessels under long-term contracts [15][16] - The recent order for scrubber-fitted VLCCs is expected to enhance the fleet's earning capacity and modernity [9][10]