Tsakos Energy Navigation Beats On Q2 Amid Positive Tanker Market Environment

Tsakos Energy Navigation Ltd TNP reported a Q2 FY23 Voyage revenue of $221.45 million, beating the consensus of $174.10 million.

EPS of $1.65 surpassed the consensus of $1.60.

Operating income increased to $82.6 million from $57.3 million a year ago.

Quarterly fleet utilization was 94.2%, and the daily average TCE per vessel rose to $38,353 (+31% Y/Y).

The company's new charters secured over $1.5 billion in fleet revenue backlog. 

Adjusted EBITDA increased 32% Y/Y to $120.2 million in the quarter.

As of June 30, 2023, the company's cash reserves stood at $534.1 million. Bank debt stood at $1.38 billion.

TNP's 10-green vessel newbuilding program is on track, with four dual-fuel aframaxes to be delivered from September 2023 to Q1 FY24. 

Dividend: TNP will distribute a second semi-annual dividend of $0.30 per share in December 2023, following the $0.30 per share payment in June 2023 and an additional special dividend per share of $0.40.

The special dividend is scheduled for October 26, 2023, to shareholders of record as of October 20, 2023.

"Taking advantage of the positive environment in the tanker market the Company has timely monetized a big part of its first-generation tankers and has reinvested the proceeds for new and environmentally friendly vessels, common share dividend distributions and a significant reduction of its preferred shares. The recent appetite from our major clients for accretive long-term business, particularly in the LNG and tanker segments, has given us the comfort to secure over $1.5 billion in forward revenues and ensure continuity in providing healthy returns and increased dividends to our shareholders," said George Saroglou, President and COO.

Price Action: TNP shares are trading lower by 4.43% at $18.85 on the last check Thursday.