Stock in the Spotlight: Tsakos Energy Navigation Limited (NYSE: TNP)

On Friday, Shares of Tsakos Energy Navigation Limited (NYSE: TNP) inclined 1.82% to $3.54. The stock recorded $222.35 as its minimum price and hit the max level of $224.40, during its most recent trading session. It traded total volume of 41,211 shares lower than the average volume of 143.49K shares.

TEN, Ltd (TEN) (TNP) recently stated results (unaudited) for the quarter and half-year ended June 30, 2018.

Q2 2018 SUMMARY RESULTS:

TEN’s fleet earned $124.0M in gross revenues and $4.20M in operating income. Excluding a marginal loss of $0.40M from the sale of the VLCC Millennium, the Company incurred a net loss of $9.20M, a 23% improvement from the first quarter of 2018. Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization and loss on vessel sale) totaled $35.50M. Fleet utilization increased to 96.2% with two vessels undergoing dry-docking in the period. During this quarter, almost 80% of the fleet was employed on secured revenue contracts, a third of which with profit sharing provisions, which, as in the first quarter of 2018, led TEN’s fleet earnings to outperform the spot market by more than 100%. These vessels under secured revenue contracts continued to generate enough cash to cover most of the fleet’s operating, overhead and finance costs. TEN’s vessels on spot charters and despite the soft market, contributed about $15.30M of revenue after bunker, port expenses and commissions.

Depreciation and dry-docking amortization costs up by $2.30M because of new vessel deliveries. Management strict cost controls resulted in a reduction of operating expenses to $7,571 per vessel per day, 6.8% and 3.8% decreases from the first quarter of 2018 and the second quarter of 2017 respectively, despite a weakening of the US dollar.

Total interest and finance costs were reduced by $1.10M to $14.80M, from the 2017 second quarter mainly because of successful hedging against increases in bunker prices.

SIX MONTHS 2018 SUMMARY RESULTS:

TEN’s vessels earned gross revenues of $250.0M in the first half of 2018 with operating income at $9.80M. Net losses in the six months to June 30, 2018 amounted to $210M, before a marginal $0.40M loss from the sale of VLCC Millennium. Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization and loss on sale of vessel) totaled $70.70M. The daily time charter equivalent rate per vessel, was $17,463, more than double the average spot rates for the period. Fleet utilization was at 96.2%, most of the lost time having been incurred in the first quarter because of bringing forward, to take advantage of the low freight markets, various dry-dockings planned for a later date, which influenced revenue and increased operating expenses. Average weighted daily operating expenses per vessel were kept at $7,849.

TNP has the market capitalization of $310.59M and its EPS growth ratio for the past five years was 27.10%. The return on assets ratio of the Company was -1.80% while its return on investment ratio stands at 2.00%. Price to sales ratio was 0.61 while 27.80% of the stock was owned by institutional investors.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Leave a Reply

Your email address will not be published. Required fields are marked *